The online gaming market just surpassed $63 billion in value. The cryptocurrency market has reached $38 billion this year. The Forex market is expected to be valued at $1,143 trillion by 2028. These high-risk industries are booming, so they must develop new digital products. It urges them to look for IT vendors to deliver on that. Projects involving high-risk transfers are typically time-consuming and are associated with IT businesses worldwide. For IT companies, opening a traditional account is a significant challenge. When it comes to accounts for high-risk transfers, one can speak of an almost impossible task.
Luckily, there is PayDo, a London-based Electronic Money Institution (EMI) regulated by the Financial Conduct Authority (FCA). We had a chance to help resolve some of the key issues IT companies face when working with high-risk transfers. Let’s take a closer look at how we made it happen.
Opening a business account for high-risk transfers for an IT company proves extremely complex. Traditional banks are unfamiliar with business models and all the nuances associated with the IT industry. They are wary of everything linked to international, online, and digital services. That’s why many traditional banks are reluctant not to service IT businesses due to a simple lack of understanding of how IT companies operate and their end-products.
Naturally, even if a traditional bank decides to open an account for an IT company to manage high-risk transfers, which is highly unlikely, the financial institution will ask for a massive package of documents. Yet, much of the requested documentation often has nothing to do with opening an account in the first place. As a result, the process of opening an account can take months.
Conventional financial institutions often perceive high-risk businesses as inherently inclined toward illegitimate financial activities. While the innocent until proven guilty does not work in this case, the second challenge with high-risk transfers for opening a business account is exactly about that.
Even if a bank agrees to open a business account for an IT company, it can be a daunting task to prove that the high-risk transfer between an IT business and its high-risk counterparty is legitimate. Proving that the services were delivered and a high-risk counterparty paid for that. In other words, any high-risk transfer between an IT company and its high-risk counterparty can be rejected by the bank, and proving that such a transfer is legitimate might be an almost impossible task.
The third challenge IT companies face stems from working with international contractors who need to be paid in various currencies. However, opening a multicurrency account with most banks and EMIs comes at a hefty price. These financial institutions often charge extra for each additional currency or payment scheme an IT company needs.
In such a case, when an IT company needs to pay its contractors, often located worldwide, it can cost a lot to add all the currencies a vendor needs. Also, because of all the required documents and verifications, it can take a great deal of time for a financial institution to open a multicurrency account.
When faced with the challenges above, IT companies look for someone with a solution. It is the moment when PayDo steps in.
PayDo constantly works with the IT industry, assisting in receiving uninterrupted payments for their services through PayDo accounts from high-risk counterparts. This includes large transfers, where payments for several months of development are made at once. In such a case, the amounts can reach €500,000 in a single transfer.
Returning to the case, to resolve the challenges of opening a business account that can serve various countries in multiple currencies, PayDo offers this multifaceted solution:
PayDo understands the IT industry inside and out. We know the products IT companies offer, their operations, and their challenges with traditional financial institutions. With this knowledge, PayDo created a solution that lets IT companies open a business account for high-risk transfers in about 5 business days using standard documents.
When an IT company applies for a PayDo business account, they can list key high-risk customers. Unlike traditional banks, we won’t reject the application based on this information. Instead, we’ll either approve it immediately or ask for additional documents that any IT company can provide. Once we receive these documents, we cross-reference them with our whitelist to ensure everything is in order. This makes the account opening process with PayDo both quick and transparent.
PayDo understands the unique needs of the IT business. That is why we won’t ask for unnecessary documents unrelated to your situation. In that case, all the high-risk transfers will be processed fast and without any hiccups. This happens because:
These ensure a high degree of transparency and speed in handling high-risk transfers in the IT business.
When IT companies open a multicurrency business account with PayDo, they receive a dedicated IBAN. This is especially useful for handling high-risk transfers and making global payments to contractors. A dedicated IBAN can do that in 6 currencies (EUR, USD, GBP, AUD, CAD, DKK). Soon enough, we will add 7 more currencies (CHF, PLN, NOK, SEK, CZK, HUF, RON).
The multicurrency business account with a dedicated IBAN allows our clients to use SEPA, SEPA Instant, Cross-border, Fedwire, and Target2. In addition, PayDo also provides local account details, granting access to FasterPayments, Chaps, and Backs for the UK and Kronos2 for Denmark. It means an IT company can pay its contracts with currencies and payment schemes for international and local transfers. Besides, having a multicurrency account also allows for avoiding unnecessary currency exchange.
PayDo is well-versed in the IT business. We have worked extensively with IT companies, gaining unique expertise. This allows PayDo to assist IT vendors in opening business accounts for high-risk transfers in a few days. We can also process these transfers quickly and transparently. Finally, we offer multicurrency support for receiving payments from high-risk parties and paying international contractors without additional fees. As a result, our IT clients can do what they do best—deliver high-quality digital products.
Ready to transform your high-risk transfer handling with PayDo? Connect with our experts today to explore tailored solutions for your IT business.
