Opening an account in the payment system
(neobank, digital bank)
The Fintech sphere is actively developing today, which, of course, pleases users of financial market services. The results of modern research demonstrate that the level of satisfaction of account holders in modern payment systems is constantly growing. A number of factors contribute to this.
The payment system is a set of certain procedures and rules, as well as a technical infrastructure. All this together provides the possibility of transferring funds by bank transfer from one entity to another. At the same time, the user is offered the opportunity to choose a payment system, taking into account the specifics of their company's activities, the activities of the payment systems themselves are licensed, and supervised by authorized financial authorities at the place of their registration.
One of the main advantages of payment systems is their efficiency. Unlike classical banking institutions, opening an account in payment systems requires much less time and effort. In most cases, the account opening process can be completed entirely online, with minimal bureaucracy. This is especially convenient for entrepreneurs and freelancers who need to start accepting payments quickly.
Yes, payment systems do not issue loans, do not accept deposits, do not trade in securities - they do not carry out a number of operations from the traditional list for banks. But we immediately note that many of these “traditional banking operations” are often recognized by financial regulators as risky transactions. Many payment systems are members of SWIFT and SEPA, assign customers a unique IBAN, open Merchant Accounts to process payments from online stores. Often, it is possible to make settlements not only in fiat currencies (USD, EUR), but also in electronic money, cryptocurrencies (especially relevant for the modern, rapidly changing financial environment). At the same time, the account opening procedure is faster (mostly up to 7 working days), and the Know Your Customer procedure is simpler than in a bank (in some cases, there is a need to conduct a video conference with a client, etc.). In addition, most PSs issue their own VISA, Mastercard cards, etc., allowing customers to withdraw funds, and these cards can be issued as:
- non-personalized cards (i.e. with the possibility of maintaining the anonymity of the holder);
- salary cards (widely used by IT companies whose employees are located in different countries);
- corporate cards in different currencies (to cover corporate expenses, as there is no control over operations when transferring funds to such cards).
Cards issued by the PS are an excellent option for those who often travel abroad (it is profitable to pay with a card when traveling, withdraw cash in foreign currency (because in Ukraine, withdrawals through ATMs, according to the requirements of the NBU, are possible only in hryvnia); receipts on the map are not subject to publicity).
A PS account is also beneficial for companies that export / import and accept / send payments in different currencies and from different countries/to different countries, as well as e-commerce companies that accept payments through the site, because PS offer merchant accounts (Merchant account).
Thus, today payment systems have become an effective tool that helps make the process of online payments really comfortable and safe for the user.
Key aspects of choosing an international payment system (PS) for opening an account
To date, the biggest problem of PS is significant restrictions: on the territory of activity and on accepting / making payments, on withdrawing cash from cards, on the currencies of accounts with a unique IBAN. Therefore, when choosing a payment system, it is necessary to focus on the main countries with which you cooperate, and on your requirements for the planned payment scheme.
The prospects for further development of payment systems look very encouraging. The rapid pace of technology development and the growth of online commerce are driving an increase in demand for convenient and secure payment instruments. Many payment systems are actively developing innovative solutions, such as the use of blockchain technologies and cryptocurrencies, to improve their services and meet the needs of modern users.
In conclusion, opening an account with payment systems is an attractive alternative to classic banks. Fast and convenient account opening, globality, additional services and development prospects make payment systems attractive to a wide range of users. However, it is necessary to take into account possible restrictions on certain transactions or their amount, the specifics of commissions depending on the type of business of the company, etc.
If you are interested in opening an account in payment systems or need advice on this issue, please contact us – the law firm Finance Business Service. Our experienced specialists will help you choose the most suitable payment system and guide you through the account opening process. Contact us today and start enjoying the benefits of modern payment systems right now!
