In recent years, the global financial landscape has been undergoing significant transformations. The rise of digital-only banks and payment providers has witnessed an unprecedented surge, with industry experts suggesting that digital banking users are expected to reach 3.6 billion by 2024, marking a 45% growth from 2021 figures. This shift is partly due to the digital innovations in the banking sector and the increasing consumer need for efficient, safe, and swift international payment solutions, particularly in an era where international commerce is at its peak.

At the heart of this revolution is Collect & Pay, a fintech pioneer, offering seamless international payment services tailored for corporate clientele. Today, we're delighted to sit down with George Arakelov, the Chief Executive Officer of Collect & Pay. He delves into the company's journey, the challenges faced by businesses in the traditional banking ecosystem, and the promising innovations Collect & Pay is introducing to the global financial marketplace. Join us as we explore the future of international banking and multi-currency payment solutions through the eyes of an industry trailblazer.

George Arakelov
George Arakelov George Arakelov

Question: Mr. Arakelov, could you please provide us with an overview of Collect & Pay and the comprehensive range of international payment services you offer? What inspired you and your co-founders to start Collect & Pay, and what is the story behind its inception?

George Arakelov: Collect & Pay is a licensed fintech company that provides payment solutions for international companies. The history behind it is connected with today's banking system and its difficulties. Many businesses are struggling to open international bank accounts for certain industries in specific countries. On top of that, opening a corporate bank account can be time-consuming, and there's always the risk of rejection.

Companies need a simple and secure way to send money to their partners. We pondered on how best to address this and thus, Collect & Pay was born. We have been in operation for over three years and have honed our skills to ensure a seamless international money transfer experience for our corporate clients.

The financial landscape is undergoing a significant shift, with emerging startups like Wise and Revolut gaining popularity as preferred providers for both businesses and individuals. How does Collect & Pay differentiate itself from both traditional banking institutions and other neo-banking providers in terms of services and offerings?

GA: While we operate on a model similar to Wise and Revolut, our services cater exclusively to corporate clients. Unlike traditional banks, Collect & Pay facilitates online account creation, eliminating the need for company representatives to be physically present. We've integrated an online verification tool that accelerates the account setup process, allowing businesses to access international payment options as soon as possible.

A significant edge we have over other neo-banking providers is our dedicated customer support. In an era where AI-powered support is becoming the norm, we believe in a personal touch. Every client gets a dedicated manager and a personal assistant available 24/7 to respond and consult in case of any problems with their international bank account.

In today's era, users' expectations from their bank accounts are constantly rising. Could you elaborate on the key features that users seek in their bank accounts? Furthermore, which features do you believe will become increasingly important in the coming years?

GA: Certainly. As highlighted earlier, online onboarding has become paramount. In this digital age, financial institutions should prioritize streamlining both the onboarding and payment processes. Equally vital are the speed and security of transactions. Users need assurance that their funds are safe from potential threats or cyber-attacks. Moreover, the demand for multi-currency support and efficient currency conversion is on the rise. Given the growing traction of digital currencies, features like cryptocurrency support, crypto exchanges, and fiat-to-crypto conversions will likely become essential.

Looking ahead, what can we anticipate from Collect & Pay in terms of innovation and expansion within the international payment services market? Are there any upcoming developments or initiatives that you would like to share with us?

GA: From multi-currency bank accounts, currency exchange, and virtual IBANs to OPEN API, Collect & Pay offers most features that international corporations are looking for in 2023. But of course, we are still looking to constantly optimize and develop our platform and solutions.

For example, we're in the midst of rolling out debit card solutions for our clients. And most importantly, we're excited about the launch of our new venture focusing on digital asset solutions — Collect & Exchange. This initiative aims to assist many companies and individuals with digital currency transfers worldwide, exchanging to FIAT & vice versa, and providing many other tools.

Data security and privacy have become paramount concerns in the payment industry, and regulatory bodies worldwide are tightening their grip on payment service providers. What are the key cybersecurity challenges that companies like Collect & Pay face, and how does Collect & Pay address these issues to ensure security and privacy for its customers?

GA: In today's tech-driven world, building and maintaining trust in the fintech sector is crucial. This trust is the foundation for building stable and long-term partnerships between service providers and customers. Naturally, trust becomes even more crucial when it pertains to international payments and off-shore bank accounts.

As a global payment solution, the privacy of our clients and partners is one of Collect & Pay's main priorities. We rigorously adhere to the data protection stipulations laid out by the Astana International Financial Centre (AIFC) and uphold international principles and standards.

More specifically, we've developed robust Privacy and Data Protection Policies in line with those requirements ensuring that we consistently meet and exceed our clients' expectations. Our commitment is unwavering: to protect and respect personal data, demonstrating our compliance with the AIFC Data Protection Regulations.

As technology advances, various new developments like the metaverse and blockchain are being hailed as the future of finance. In your opinion, which of these technologies, if any, will have the most significant impact on the financial industry? Additionally, are there any other noteworthy technological developments that consumers and investors should keep an eye on?

GA: Blockchain technologies are currently developing at a staggering pace and are predicted to revolutionize the international payment industry in the coming decades. Take, for instance, El Salvador, which became one of the first nations to recognize Bitcoin as a legal tender in 2021. This move was driven by the escalating costs of money transfers between financial intermediaries and global inflation. Many experts predict that more developing nations will soon accept cryptocurrency.

Another significant trend to watch is the Social Credit System, as it's currently implemented in China. It supports the creation of a record-keeping system allowing organizations, people, and governmental bodies to be monitored for their credibility and trustworthiness. I believe this will protect many companies from potential business partners' bad payment behaviors and will be a valuable tool for compliance specialists in addressing financial and payment issues.

Lastly, gamification in banking presents an exciting avenue. Mobile banking apps might offer "quests" to users, asking them to perform specific actions to earn points and advance levels. It's a very intriguing direction for the industry.