For those operating PSPs focused on cross-border payments, what are your biggest challenges in scaling the underlying infrastructure? Is it liquidity management, correspondent banking relationships, or navigating the varied regulatory landscapes of different corridors?
Definitely liquidity management. Optimizing working capital across multiple currencies and corridors without incurring massive FX costs is a constant battle.
For us, it's less about liquidity and more about the ever-evolving regulatory landscape. Staying compliant in multiple jurisdictions, especially with AML/CFT, is a significant overhead.
I'd argue correspondent banking relationships are the bottleneck. Finding reliable partners with good rates and broad reach, particularly in emerging markets, can be a real headache.
Good point on the tech integration. We've seen that too. Legacy systems really hinder agile scaling efforts, no matter how good your banking relationships are.
All three are challenging, but I find the technological integration of various systems to handle the scale and diversity of transaction types to be surprisingly complex.
Is anyone else finding that compliance with data residency laws in different countries adds a whole new layer of infrastructure complexity? It's not just about the money flow anymore.
For smaller PSPs, simply getting a foot in the door with established correspondent banks can be an uphill battle, often requiring a substantial deposit or track record.