2018 was called the breakthrough year for the fintech industry. Based on the Global Fintech Market Research Report 2019-2024, the growth will continue and will reach +13.2% by 2024. The opportunities for development seem to be very favourable.
However, experienced entrepreneurs will agree that a growing market is not all that is needed. Every business has its own path to growth.
Payseras journey to geographic expansion started seven years ago. However, only now could we say that we found a unique development formula that works. We look for local partners – people who invest their own money. We strongly believe that this way our partners will be 100% involved and will do everything for their business to also succeed. We share all our know-how, products, and service packages, as well as our IT system, support specialists, and web.
Our partner’s success in Bulgaria is the best proof that this model works. Paysera Bulgaria is working for more than three years now and is still growing. As a result, the number of transfers grew by 75%, since 2017 the company’s revenue registered a 111% growth, and it won several awards. Partner involvement in business is immense. Recently, thanks to them, Paysera has entered the Romanian market.
Results for the year 2018
Below are the aspects that, in my opinion, are crucial for successful development in a foreign country:
A wisely chosen partner can be a key factor for successful development. Peoples financial habits are formed over time not only by the economic situation, but also by cultural habits. Therefore, locals will understand the nuances of the market the best. Some of the criteria that a business partner needs cannot be debated: successful business experience, a good reputation, and understanding of the market. At the same time, it is equally important to be sure: do you feel that this person is looking in the same direction as you? The full picture will be revealed when you visit the partner – a person best opens up in their natural environment.
In-depth market analysis. We all know that such an analysis is necessary. I want to draw attention to the thoroughness of the analysis. The financial market is very complex and deals with many different aspects, so you need to look much broader and venture even into very specific statistics: from the countrys overall statistics and indicators to electronic money institutions and the attitude of the central bank towards e-money institutions.
Creating a business plan is the first step you need to take after shaking hands with a partner. According to our business model, the main task for our local partners is to work with clients and develop services in the local market. In this regard, a business plan covers a number of areas: investment; the activity and its development; the operation of the Client Service Centre. Marketing and sales play a vital role in entering a new market, so you need to determine the actions to be taken, the budget to implement these steps, and the KPIs to evaluate the result. Our objective is for each partner to obtain a licence to operate in their home country, so the business plan must provide for the steps to take in order to obtain this licence.
No urgency in planning – a smooth process is far more important. Rushing may result in mistakes on the way. The initial stage is getting acquainted with the partner and the market of the partners country, after that the business plan should be outlined. The second stage is preparation to carry out the activity. Meanwhile, several processes are underway: the office is equipped, the products are adapted to the local market, and client service specialists are trained. The next stage is the start of the activity. The most important thing here is to follow the objectives and actions set out in the business plan.
A two-way relationship is established. We are first and foremost communicating person-to-person, as equal partners. Secondly, we seek to do business with a single person who sees the business as a whole. Ideally, this should be a CEO holding shares, because in this case, the person not only understands all the processes but also has a personal interest in the success of the company. We are open and do everything to help partners, share all the know-how we can. Finally, it is very important to consider the whole team, to involve them in common processes, to foster a positive work environment – we have joint annual trips with entertainment activities, workstations, and we even visit each other from time to time.
All these tips come from the unique experience of Paysera. Not all of these aspects are necessarily relevant to the business model you choose, but it might help you make the right decisions.
Have you found your successful development formula?
About Kostas Noreika
Kostas is a finance expert with more than 20 years of business experience. He is one of the founders and a shareholder of the payment system Paysera. Kostas is a true leader, interested in innovation and technology, and always strives to improve and expand.
About Paysera
Paysera was the first fintech company in Lithuania, successfully operating for 15 years. Paysera offers a wide range of services for both private and business clients: from free IBAN accounts, to real-time currency exchange, and unique payment solutions. Currently, the company is rapidly expanding, providing its services worldwide by adapting them to local markets through a network of partners.
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