Overlooked and overrun no more! Small and medium-sized businesses are playing catch up, thanks to the latest trends and improvements in payment processing options. For so long, these merchants have been held back by legacy infrastructure. Today, they are set to make a comeback.
The Systems of Old
Many small businesses have long been frustrated with the inability to operate as widely as they wish. While many can now operate across borders, banking infrastructure prevents them from doing so, making transactions difficult, risky, slow and expensive. Why? Because they consider these businesses to be “high risk”.
Companies are typically labeled “high risk” for a couple of reasons. First, the type of industry they operate in is considered risky for one reason or another (e.g. fraud risk, subscription services, nature of business and high chargeback rates). Online pharmacies and online gaming are among that list, for example. Second, small and medium-sized companies receive this label because they tend to have low sales and transaction volumes.
Changing the Game
The internet is still expanding – at a rapid rate. Especially over the last two years, the way businesses do businesses and what customers expect have been transformed. As more and more of everyday life and business moves online, new opportunities and solutions are opening up to small business owners.
Cryptocurrencies are emerging as the solution to many of the main problems with traditional banking systems. Fintech companies like XanPool have developed infrastructures that bypass legacy banking networks, for example. XanPool’s founder and CEO, Jeffery Liu, explains how his company’s cross-border payment solution came about.
“As an entrepreneur, I am also on the lookout for problems people are having, and I then set out to try and provide a solution,” he says. “XanPool was founded in 2019 because there was a problem onboarding and offboarding from fiat currencies to crypto. The issue was that to buy and sell crypto with local currency, you had to go through the legacy banking infrastructure with all its fees, delays, and risks. Given that Bitcoin was invented to bypass traditional systems, the situation was crazy. So, we designed a way around that.”
SMEs Are No Longer Being Ignored
For so many years, the problems smaller companies faced with funding and payment processing solutions were largely ignored by the bank system. This was especially true for those considered risky. Today, with so many options available and fintech solutions, it’s banks that have to be careful and risk falling behind.
Blair Thomas has been a music producer, bouncer, screenwriter and for over a decade has been the proud Co-Founder of eMerchantBroker, the highest rated high risk online gaming merchant account processor in the country. He has climbed in the Himalayas, survived a hurricane, and lived on a gold mine in the Yukon. He currently calls Thailand his home with a lifetime collection of his favorite books.