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Consumers Demand More Purchasing Options: Fiserv

Sergio Villaruel - Fiserv
Country Manager

STORY INLINE POST

Sofía Hanna By Sofía Hanna | Journalist and Industry Analyst - Tue, 05/17/2022 - 14:08

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Q: How does Fiserv help support all the needs a business might have?

A: Our international experience allows us to remain leaders in innovation and benefit our customers. While a technological solution is important in any sector, the quality of service both in implementation and sales is Fiserv’s clear differentiator. Our approach goes beyond a service provider; we seek to support the merchant’s operations by leveraging our extensive knowledge in payment methods.

Fintech is booming and financial institutions want to create products that meet their clients’ new requirements arising from the shift to digital services. When fintech companies and financial institutions develop products, they often do not have the necessary technology partners. For over 30 years, Fiserv has been an ally of these types of clients. We are continuously investing in platforms to give Mexican companies the opportunity to access technology to innovate and be competitive.

 

Q: How does the company facilitate technology integration to accelerate growth?

A: Overall, all players want to be at the forefront of their industries, avoid large investments and accelerate the time to market. Our business line for fintech and financial institutions provides a management system through an integrated API platform that helps our clients to create their credit or debit products. With this service, Fiserv helps clients accelerate their time to market and offers technological stability that creates a sustainable ecosystem without large investments.

 

We also offer businesses alternatives, such as e-commerce solutions and payment links. Not all businesses know how to implement these solutions, nor have the budget to do so. For this reason, our goal is to provide accessible products that are adaptable to the new demands of the market. Fiserv offers consultancy services and accompanies clients through the implementation of the alternatives that are most convenient for them. 

 

Fiserv is a global leader in payment solutions. We are the main global acquirer and the most important issuer processor. Fiserv is also the most popular US account processing provider. We move US$75 trillion annually and provide service to over 1 billion card accounts. We are present in over 100 countries, where we support millions of merchants and thousands of financial institutions. 

 

Q: What opportunities has Fiserv identified in the Mexican market and how has the brand increased its presence in the country? 

A: Today’s consumers demand more options to make their purchases and want a better experience with the company. E-commerce businesses must offer a simple shopping experience, secure digital payments, instant acceptance of card payments in accordance with advanced security standards and regulations and the ability to pay in three, six, nine or 12 month periods interest-free, among other alternatives.

We have been in Mexico since 2002, operating through First Data México to provide credit card processing services to leading banks. In 2019, First Data merged with Fiserv.

Mexico is one of our main markets as the country has great potential for growth in electronic payments thanks to its economy, population, the high use of cash and its proximity to the US, where Fiserv has over 40 percent of the acquiring market.

 

Q: What have been the sectors in which your solutions have been most needed?

A: For large companies and banks, we offer solutions for manual reconciliation processes through automation. Our Frontier solution helps with bank, financial and operational reconciliation, while our Cash and Logistics solutions forecast how much money ATMs should hold. For the acquirer, we aim to offer technological products at an accessible cost. However, Mexican businesses have been reluctant to automate processes.

 

Some of the sectors in which our technology is most useful are retail, fintech and banking. However, our technology and consultancy expertise allows us to help any business seeking to improve their payment system and/or financial operations. One of our success stories is our work with SmartFit to support its growth through our payment technology. Another example is our alliance with Knova to implement a payment integration strategy using PIN pad terminals and payment gateways.

 

Q: How is Fiserv revolutionizing the financial sector?

A: We want to innovate in the financial sector through advanced technology and customized solutions for businesses. To achieve this mission, we have developed several solutions that integrate financial technology and can be tailored to every business need, such as Frontier™ Reconciliation, Signature, Anti-money Laundering Risk Manager, Digital Access and Cash and Logistics.

 

About 35 percent of Mexican users turn to fintech because they provide lower interest rates compared to banks and financial institutions, according to fintech company Drip Capital. The Mexican Banking Association (ABM) has reported that 53 percent of adults in the country lack a bank account. We see this context as an opportunity to improve the financial sector through Fiserv’s offer and expertise.

 

Q: How do your solutions integrate with the traditional banking system, making it easier for companies to combine the two?

A: We provide manual reconciliation automation technology that helps reduce errors, improve efficiency and accuracy, reduce operating time and improve regulatory compliance. Through our solutions, we help financial institutions of all sizes transform their customers’ banking and payment experiences.

 

Our solutions for financial institutions address banking-only payment processing, money laundering prevention and logistics of financial resources. We design banking products for financial institutions that want to create or reinforce their digital strategy and strengthen their card-issuing services.

 

Q: How has Fiserv promoted Mexico’s fintech system?

A: Our platform complies with the fintech law and security measures. Since the implementation of the Fintech Law, the National Banking and Securities Commission (CNBV) has been in charge of ensuring that companies comply with all the established standards regarding money-laundering prevention, liquidity, operational efficiency and transparency. Mexico City has the largest number of companies in the sector, with 443 companies representing 69.1 percent of the country’s total. We see this regulation as a good model that allows fintech to consolidate. Fintechs are part of an important niche with numerous regulatory challenges because the sector undergoes constant changes. We must give players the opportunity to create their products while abiding by the law.

 

The sector is growing in the country. According to México Fintech, Mexico, Colombia and Brazil are the Top 3 financial technology markets in Latin America. Our solutions help financial institutions of all sizes transform their customers' banking and payment experiences.

 

Q: How do you plan to increase your presence in Latin America and what business areas are attractive to develop?

A: We are present in Brazil, Argentina, Uruguay, Colombia, Central America and the Caribbean. We have been operating in Mexico for over 30 years and one of our most important objectives is to continue investing in new platforms and innovative solutions to offer Mexican stores a competitive advantage. We aim to offer the best cost-benefit to our customers but, beyond that, we want to provide the most appropriate solutions to businesses so they can receive payments on time and eliminate the margin of loss in sales.

We aim to continue expanding. We believe in collaborating with local teams to take advantage of their experience and boost it with ours. These alliances allow us to introduce innovative technology to our clients in Latin America, including Mexico.

 

Q: What are your next projects and launches for 2022?

 

A: We will introduce PosNet, our omnichannel pocket terminal that connects to any mobile device, ideal for home payments that allow merchants to charge with payment links and generate online stores. We will also introduce Carat, an ecosystem of omnichannel commerce solutions for large national and multinational companies to deliver expansive global payment opportunities across channels, devices and payment methods, securely and on a global scale.

 

Fiserv is a world leader in payment processing technology that helps to simplify commerce for consumers, businesses, financial entities, educational institutions and governments in over 100 countries.

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