Working Toward a More Financially Inclusive WorldBy Sofía Hanna | Thu, 12/09/2021 - 15:23
Q: What benefits does Geopagos offer small businesses?
A: Geopagos offers our payment platform to Banks, Buyers and/or Payment Facilitators as a Withe Label Solution. They offer the system to their customers (merchants) with their own image and brand. The system helps businesses market and sell their products. This tool is increasingly necessary to help payers familiarize themselves with card payments, especially in remote towns. Small businesses can grow up to 15-20 percent if they accept digital payments. Many of those businesses had to close their physical stores during the pandemic and switch to digital services to stay afloat and grow. Businesses are the beneficiaries of this technology and users appreciate the solution because it provides them with more payment options.
Q: What added features does Geopagos include to differentiate itself from market competitors?
A: We offer payment processing technology and an end-to-end service but we do not work with the end-user. We develop the platform in compliance with local and international regulations and our clients market the products. Few companies offer this type of software as a service. We provide the technology that our clients need to offer their services. Products such as mPOS, SmartPOS, eCommerce Payment Link, Tap to Phone and other services for processing card payments
Q: What criteria did the company analyze to enter the Mexican market?
A: We analyze the market’s potential, users’ needs and the technology available in each region. We rely heavily on the needs of our clients and the sector they want to enter to develop the appropriate technology for payments. For example, regulated aggregators came to Mexico five years ago and they have now surpassed banks in affiliated businesses by almost 65 percent. There are almost 1.4 million businesses affiliated with Banks and 2.6 million affiliated with regulated aggregators.
Q: How do you ensure payment security when using your mPOS solution, which can be used with several card readers?
A: Payment security is important and must take into account the different electronic devices that will be used and the regulations regarding information management. We prioritize security and the internal regulations related to the cards and also provide technical support and the necessary national and international certifications. Geopagos has a PCI certification and is certified according to local and international regulations to process card payments, both in Mexico and in the 16 countries in which it operates.
Q: How does your Tap to Phone solution differ from the public CoDi system and what advantages can it offer to business owners?
A: This technology converts a cellphone with an NFC antenna into a bank terminal in order to receive payments with bank cards or wallets with this technology, saving the customer the need to buy further hardware to make safe payments using a mobile device. On the other hand, Codi accepts payments linked to your bank account through QR codes that both the merchant and the end-user must register in their bank account. We believe that businesses must have multiple services to receive payments from their customers, this helps to increase the volume of their sales
Q: Why do you offer both mPOS and Tap to Phone rather than a single option directly through a smartphone?
A: Each segment has its needs. mPOS can be easily acquired and used after a merchant validation process through a bank, acquirer or payment aggregator. Tap to Phone will allow the payments ecosystem to replace the physical hardware and take advantage of their mobile devices to accept card payments. Each payment solution is designed for certain segments and industries, but in some cases both can coexist, offering buyers a more complete service. Such is the case of payments with bank cards and CoDi.
Q: What regulatory changes would contribute to a more dynamic fintech market in Mexico?
A: Without a doubt, compliance with the regulations by the companies that offer this service, such as generating rules that allow the contracting and use of new platforms and payment technologies such as Tap to Phone and CoDi
Regulation is essential and has allowed these technologies to further penetrate the market. Payment aggregators have gained significant acceptance during the past five years, especially in cities where people are not used to paying with a debit or credit card. The Fintech Law will help users feel secure when using these tools.
Q: How has the company extended its services to Mexico’s informal sector?
A: Working with informal businesses is difficult but we are doing so because we want to gradually eliminate financial barriers. Most clients of payment aggregators are informal businesses and giving them a legitimate point of sale has been a big step forward. Fintech and other similar companies must now focus on regulation that helps that segment have greater access to banking. Financial education is also important to remove the fear of taxation since handling cash is expensive and can introduce many problems.
Q: What are the company’s goals for the coming year?
A: In eight years, Geopagos has expanded to 16 countries. In Latin America, we have 35 clients and 1 million end-users.
In 2022, our goal is to focus on attracting 12-15 new customers and keeping the platform certified and in compliance with regulations with new products and services. We also want to double our number of users who operate through our clients.
and perhaps to be able to disembark in other countries such as Brazil, which is a fundamental region, and of course in the United States.
Geopagos develops platforms and payment networks, considering both the front and the backend. With operations in 16 countries, it facilitates more than 100 million annual transactions with a processed volume of US$3.5 billion a year.