Welsh Fintech in Focus: Exploring Payments Innovation with Ibrahim from Finxplor
11 October, 2024
Fintech Wales is excited to present the latest episode of Welsh Fintech in Focus, where Owain engages with Ibrahim Muhammed, founder of Finxplor, to delve into the rapidly evolving world of payments and remittances. In this insightful conversation, Ibrahim draws from his 25 years of experience in the payments industry, now as an independent payments consultant, to highlight the current trends, challenges, and technological innovations reshaping the sector.
Addressing Cross-Border Payments Challenges
Ibrahim explains how one of the biggest hurdles for fintech startups in the payments space, particularly in cross-border transactions, is gaining access to banking services. Traditional banks are often hesitant to onboard new players, leaving startups to rely on alternative banking service providers. These alternatives, however, come at a significant cost with high onboarding fees and recurring monthly charges.
This obstacle is crucial for new entrants, and Ibrahim’s insights underscore the importance of navigating these financial barriers early on.
The Role of AI and Blockchain in Payments
The conversation moves on to the impact of emerging technologies like AI and blockchain. According to Ibrahim, AI has become a mature, indispensable tool in payments, used for tasks such as customer onboarding (EKYC), fraud detection, and payment processing. On the other hand, while blockchain technology is still evolving, Ibrahim highlights its potential, especially in enabling decentralized payment systems. Blockchain’s promise lies in facilitating faster, cost-effective cross-border transactions with the use of on-demand liquidity and cryptocurrency.
Advice for Growing Fintechs
For smaller fintechs seeking to enhance their payment services, Ibrahim advises focusing on the customer’s pain points and building solutions that genuinely address their needs. Rushing to launch products without understanding the market can lead to services that fall short of expectations, which can be costly to correct later. He emphasizes the value of thorough market research, leveraging data analytics, and collaborating with experts when necessary.
Supporting Welsh Fintech Growth
Wales is rapidly becoming a fintech hub, and Ibrahim acknowledges the important role that Fintech Wales and the Welsh Government play in this growth. The fintech sector has seen exponential employment growth, from a few thousand to over 16,000 people, and major players like Starling Bank and GoCompare are solidifying Wales’ global presence in the industry.
As an advisor and consultant, Ibrahim’s work at Finxplor supports businesses—particularly those in cross-border payments and foreign exchange services—helping them navigate regulatory complexities and scale their operations efficiently.
Watch the Full Interview
To learn more about Ibrahim’s insights and his work at Finxplor, watch the full interview below and explore how fintech is driving payments innovation in Wales and beyond.