With the payments industry landscape constantly evolving, industry-leading technology providers need to continually enhance their offering to meet clients’ growing demands. We sat down with Amit Klatchko, Co-Founder and Director of Praxis Tech to discuss his take on the current state of global digital payments, where we’ve come, and what technology providers will need to do in the future to help merchants maintain a competitive advantage.
Praxis Tech is a payment technology provider, as opposed to a payment solution provider. To set the stage for this conversation, can you explain the difference?
Payment Services Providers (PSP) are responsible for onboarding merchants at financial institutions, or they are financial institutions themselves. They deal with monetary transactions – collect funds and settle them with merchants – process credit or debit cards and offer their merchants accounts.
Technology providers provide integration and data transfer services but are not involved in the transactions themselves. Just like phone companies provide the infrastructure for you to speak to others, they do not take part in the actual calls.
Praxis Tech is a technology provider, not a PSP. The Praxis offering is Software as a Service (SaaS). Merchants using Praxis manage their own processing relations from start to finish. They must supply all documents, sign contracts and secure monetary settlements. The Praxis technology eases merchants’ integration, development costs and timelines, while delivering superior services in the form of transaction routing, limits, and more.
What is the main challenge that Praxis set out to solve and how has the company grown since?
We started with our Cashier solution. We wanted our merchants and their clients to experience a streamlined and optimized checkout flow and user experience. Our feature-rich, easy-to-use back-office is designed to fully support merchants as they execute all their payments, achieving that highly-coveted, great user experience while giving merchants peace of mind and greater security. To solve this problem, we built Praxis to provide our merchants with their own, customizable, hosted payment page, and access to the Praxis back-office. Since then, we’ve expanded our offering to include a host of other services including a payments API, in addition to our gateway solution, and a range of products for PSPs.
Our company has grown as the needs of our customers have evolved. Another form of branching out we’ve been witnessing is on the part of the merchants and companies we work with. They aren’t just brokers, gaming operators, or car rental companies. They’re expanding their horizons, building stunning websites, and engaging in superior marketing and customer service via social networks, SEM, or affiliate sources. Using Praxis, they are even branching out to other related industries, while ensuring their customers enjoy the same seamless experience when making payments. Of course, they’re doing all this while benefiting from our increase in resources for meeting regulation and compliance in 3D Secure Protocol, as well as from our API upgrades with our providers.
What do you see as one of the biggest obstacles facing online merchants today?
Great question. As the world continues to undergo a digital transformation, the risks associated with cybersecurity and fraud management are not unsubstantiated. The need for regulatory compliance tools, infrastructure, and security are bigger than ever before. When a merchant partners with Praxis Tech, they can rest assured that they are working with PCI compliant banks with relevant regulations and that their money is being processed safely and securely. When it comes to fraud management, we provide our merchants peace of mind in the form of an agile routing system. Merchants can input preset rules for velocity and volume limits on a per-country basis, as well as rules for other relevant parameters, such as payment methods, affiliates, the time of day transactions are to be processed, etc.
Praxis was founded in 2014. What are the changes that you have seen within the payment industry over the years?
The payment industry has gone through quite a few changes in recent years, including an ever-expanding reach, constant upgrades, and increased compliance with regulations, as they emerge.
We’ve seen companies scale internationally to target emerging markets such as Latin America, SEA (South East Asia), and MENA (Middle East & North Africa). At Praxis, we’ve integrated our offering in these markets from day one. We continue to work hard to maintain our status and relationships in these markets, and search for new untapped markets to penetrate. While the opportunities with expanding into new markets are huge, navigating compliance and regulation landscapes can be tricky, and many emerging markets still pose serious fraud risks. As a result, regulations are getting stricter and merchants need to rely on their payment and technology providers alike to keep them compliant.
As we enter 2022, we are closing in on two years of living under the constraints of a global pandemic. Covid-19 is the cause of unprecedented hardship but has nevertheless contributed to an explosion in eCommerce sales, online trading volumes and digital banking adoption as people have found themselves stuck at home. How has this impacted Praxis Tech?
Like all businesses in all industries across the globe, the pandemic has been a challenging time for everyone, including the Praxis team. But unlike many other businesses forced to close their doors we were fortunate enough to receive a massive influx of customers from our usual – and new – industries. We buckled down and have been able to maintain an extremely high level of efficiency and professionalism with all our new and existing merchants. We continue to maintain the value – our merchants come first.
Our dedicated team has been unbelievably resilient in the wake of this difficult time. We are continually amazed at how our employees have risen to meet every professional challenge, even in the face of some of the toughest personal challenges our generation has faced to date. Our success would not be possible without our incredible team.
What is your vision for Praxis? As you see it, what does the future hold for both the company and the payment industry at large?
We’re working to continue to develop new products and features designed to secure our position as a market leader for years to come. We are currently expanding our offering to include various ecommerce niches, to be able to provide our product to more merchants and marketplaces across the globe.
Today, fintech companies must forge strategic partnerships and alliances to protect their business from potential increases in fraud risk while meeting the demands of their merchants and time-to-market needs even faster. We hope to be that partner for more and more companies, enabling us all to grow. We’re continually onboarding new PSPs from around the globe, and make it our goal to maintain an ongoing conversation with our merchants so we can respond to their needs in real time with service and innovation.
For more information on Praxis Tech at [email protected]