FINTECH

How To Identify And Mitigate Cross-Border Payment Frauds

Published

2 years ago

How To Identify And Mitigate Cross-Border Payment Frauds

This digital age has transformed the global financial landscape, with the growth of cross-border payments being astronomical. In a report by Boston Consulting Group in 2020, cross-border payments recorded a massive revenue of $156 trillion in 2019, which accounted for about 20% of global payments revenue.

This remarkable revenue growth can be attributed to the increasing expansion of businesses and the movement of people across the world. This, in turn, raises the demand for an effective and secure cross-border payment system. But as this digital process of transaction takes the center spot on the global stage, there are growing concerns about a range of frauds that can be perpetrated via the medium.

This article is to highlight some cross-border payment-associated frauds and the best practices to clamp down on them.

Security Challenges Of Cross-Border Payments

1. Cybersecurity Threat

Cybersecurity is a global concern that has its peculiarity cut across every sector, including cross-border payment systems. The rate of transactions traveling across multiple networks or systems is proportional to the vulnerability in cyberattacks.

In the last few years, there have been cases of cybercrime with devious means of exploiting the Achilles’ heel of cross-border payment systems to predate their victims. Hence leading to a loss of money.

2. Lack Of Standardization

A study by McKinsey & Co. shows that about 80% of cross-border processes are achieved manually, thereby, increasing the risk of possible human error and fraud. Lack of standardization is one major challenge that cross-border payments are grappling with across the world. Although payment systems are relative, a slightly loose end in the payment chain can become a hotbed of fraudsters. They can leverage the fragmented area to exploit the payment system.

The standards for cross-border payments vary with country, and this may put global businesses that perform transactions in multiple countries and currencies at risk.

3. Inadequate Customer Due Diligence

Customer due diligence (CDD) is an integral part of every payment system. But the challenge is greater with cross-border payments. The quality of CDD also varies with countries – which leads to an inconsistent verification process for customers. This gives room for the emergence of fraudulent financial activities, with cross-border payment systems at the fore of bearing the brunt.

How To Mitigate Cross-Border Payment Fraud

1. Improve Cybersecurity Measures

Since cross-border payments are achieved on the internet, cybersecurity must be highly prioritized for all parties involved in cross-border payments. This involves taking a holistic approach to integrating sophisticated security infrastructures like secure authentication methods, encryption, real-time transaction monitoring, etc.

Also, every financial institution must review the vulnerability status of its systems at regular intervals. It is also best to train the employee in cybersecurity.

2. Adopt The Best Standards

It has become imperative that financial institutions adopt the best international payment standards, such as ISO 20022. This messaging standard streamlines payment communication and promotes interoperability among various systems. This reduces the risk of fraud.

3. Cooperate With Regulatory Authorities

To guarantee compliance with appropriate laws and regulations, such as the Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT) frameworks, every financial institution must collaborate closely with regulatory authorities. Cooperation with regulatory authorities allows institutions to stay abreast of new risks and best practices in payment security.

4. Adopt Technology

Technological developments can be critical in reducing the risk of fraud in cross-border payments. In real-time, machine learning and artificial intelligence may detect unusual transaction patterns and warn of probable fraud.

An API included in a cross-border payments platform helps expedite and automate operations, decreasing manual involvement and possible human error. An API can improve transaction speed, efficiency, and traceability by interacting with numerous systems.

It should also be noted that a strong API may strengthen security measures by providing customized permission levels, encryption, and secure authentication procedures, ensuring that critical information is protected throughout the payment process.

How Fincra Supports Cross-Border Payment Security

Fincra is at the top of the business of guaranteeing maximum security of global payments. Our platform enables you to send and receive money locally and from countries across the world. We avail ourselves to be compliant with the highest international security standards for security to give our customers the much satisfaction they desire and deserve. You rest assured that your money is safe and secure with Fincra, even as we ensure the absolute data protection of our customers on the platform.

Conclusion

Cross-border payment security is a major problem that requires a thorough and proactive strategy. Therefore, every stakeholder in the financial sector, especially in the operation of cross-border payments needs to recognize that payment security is a continuous process that necessitates regular examination and response to a changing payment landscape.

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FINTECH

Fincra Granted Payment System License in Tanzania

Published

3 weeks ago

Christopher

Fincra Granted Payment System License in Tanzania

Fincra Receives Payment System Provider License from the Bank of Tanzania, Expands Regulatory Footprint in East Africa

Fincra, a leading pan-African payment infrastructure company, has received regulatory approval from the Bank of Tanzania through its 100% controlled local entity to operate as a licensed Payment System Provider, enabling it to deliver secure, scalable, and compliant payment services across Tanzania.

Fincra Granted Payment System License in Tanzania

This approval, granted under the Payment Systems Licensing and Approval Regulations, 2015, authorises Fincra to provide payment services in Tanzania. The license represents a significant milestone in Fincra’s East African expansion strategy and underscores its commitment to working closely with regulators to build trusted financial infrastructure across the continent.

“We are thrilled to receive this license from the Bank of Tanzania. It reflects our long-standing commitment to regulatory integrity and positions us to deliver even more value to businesses in East Africa,” said Wole Ayodele, CEO at Fincra. “This is a key part of our mission to build the rails for an integrated Africa”

The license allows Fincra to offer its suite of payment products and services to businesses operating in Tanzania, including local collections, business payouts, and API-based infrastructure for real-time payments, all while maintaining full compliance with the regulatory framework set by the Bank.

Fincra’s entry into Tanzania is strategically aligned with the country’s growing digital economy and its push for financial inclusion. Businesses in sectors such as fintech, logistics, travel, retail, and remittance will now be able to leverage Fincra’s infrastructure to scale faster, move money more efficiently, and expand across borders.

This development follows Fincra’s earlier regulatory approval in South Africa as a Third Party Payments Provider (TPPP) and cements the company’s position as one of the few African fintechs actively building a multi-market regulatory foundation to support a truly pan-African financial ecosystem.

About Fincra
Fincra is building the trusted financial infrastructure for businesses in Africa to move money locally and globally. Through a suite of APIs and no-code solutions, Fincra enables secure collections, payouts, and settlements across borders, with full regulatory backing in every market it operates.

Create a Fincra account in 3 minutes here.

FINTECH

Fincra Secures South African TPPP License

Published

3 weeks ago

Christopher

Fincra Secures South African TPPP License

Fincra, a leading provider of payment infrastructure for local and cross-border payments in Africa, is proud to announce receipt of another Third Party Payments Provider (TPPP) in South Africa.

Under this license, Fincra is now authorised to process the following types of payments:

Credit Card
Debit Card
EFT (Electronic Funds Transfer) Credit
Real-Time Clearing (RTC)
Rapid Payments

The license reinforces Fincra’s ability to facilitate seamless, secure, and compliant financial transactions for businesses operating within and across South Africa.

Fincra Secures South African TPPP License

This development marks a pivotal advancement in Fincra’s mission to build the rails for an integrated Africa by creating the infrastructure to simplify how African businesses pay and get paid globally.

“Securing the TPPP license in South Africa is a significant step toward realising our mission to build the rails for an integrated Africa. It reinforces our commitment to building compliant, reliable infrastructure that powers cross-border trade at scale. We’re excited about the opportunities this opens for businesses across the continent.”

— Ayowole Ayodele, CEO and Co-founder, Fincra.

Fincra’s new capabilities enable businesses across Africa and beyond to integrate directly with South Africa’s core payment systems and banks, offering faster settlement, greater reliability, and compliance with the country’s stringent financial regulations.

IFincra is now better positioned to support a broader range of merchants in industries such as e-commerce, logistics, B2B marketplaces, travel, and more.

“This license strengthens our ability to serve our merchants with faster, more secure, and locally compliant payment options in South Africa. It’s a game-changer for businesses looking to expand or operate in the region, and a strong signal of Fincra’s continued focus on enabling growth for our customers.”

— Emmanuel Babalola, CCGO, Fincra.

For Fincra, this is not just a regulatory achievement, it’s a signal of what’s next for the African payments space.

As Fincra expands across the continent, its growing regulatory footprint and partnerships with Tier-1 banks provide the foundation for scale and innovation.

About Fincra
Fincra is a leading payment infrastructure provider enabling seamless cross-border transactions across Africa.

Fincra empowers businesses, fintechs, and financial institutions to collect payments globally and make payouts locally, all through one powerful API or platform. With Fincra, launching remittance products, automating payroll, and expanding into new African markets becomes effortless. Fincra is building the financial rails that power trade, innovation, and scale across the continent.

Create a free account in 3 minutes at fincra.com

Connect with Fincra on LinkedIn , X(Twitter) Instagram, and Facebook.

BANKING

Network International appointed as Payment Processing Partner by MTN Group Fintech

Published

4 months ago

Christopher

Network International appointed as Payment Processing Partner by MTN Group Fintech

Network International (Network) (www.Network.ae), a leading enabler of digital commerce across the Middle East and Africa (MEA), has been appointed as a Payment Processor – Issuing partner for MTN Group Fintech, Africa’s leading mobile financial services provider. This partnership marks a significant extension of Network’s portfolio of issuer processing collaborations throughout the African continent.

Network International appointed as Payment Processing Partner by MTN Group Fintech

With a footprint spanning over 50 countries and serving over 250 financial institutions, Network International brings its expertise to this partnership which will enhance MTN Fintech’s cutting-edge mobile services and provide even greater value to stakeholders and customers across Africa.

The partnership will focus on rolling out card issuance products across key MTN Fintech markets, starting with Rwanda which is already operational. Soon Uganda, Ivory Coast, and Nigeria will also be covered under this collaboration. Network International will provide a comprehensive range of services, including transaction processing, card management and online fraud prevention. MTN Fintech users will benefit from a seamless experience accessing both traditional mobile services and innovative digital payment solutions.

Dr. Reda Helal, Group Managing Director – Processing, Africa and Co-Head Group Processing at Network International commented: “Our collaboration with MTN Group Fintech marks a major milestone for our outsourced payments services in Africa. It demonstrates our ability to successfully serve Mobile Network Operators (MNOs) via our fully-fledged processing solutions and our continued dedication and commitment to the African region. We are excited to support MTN Group Fintech’s growth strategy, and its business development plans across the continent.”

Cedric N’guessan, Executive for Payment and E-commerce at MTN Group Fintech added, “This collaboration with Network International is pivotal in enhancing financial inclusion across Africa and beyond. It enables our customers to actively engage in the global economy, aligning perfectly with our strategic goals alongside Mastercard to broaden access to digital financial services across the continent.” Read More (https://apo-opa.co/43aKuII)

MTN Group provides voice, data, fintech, enterprise wholesale and API services to more than 288 million customers in 14 African markets.

Distributed by APO Group on behalf of Network International.

About MTN Group Fintech:
MTN Fintech, the platform business of MTN Group, is dedicated to revolutionising global financial services through innovative digital technology solutions. Leveraging MTN’s extensive reach and expertise in telecommunications, MTN Fintech is committed to advancing financial inclusion for all and empowering communities in Africa. With a primary focus on pioneering mobile financial services, digital payments, e-commerce, short-term insurance, and remittance capabilities, MTN Fintech strives to establish seamless, accessible, and secure financial ecosystems that shape the future of digital finance.

About Network International:
Network International is the Middle East and Africa’s largest and leading digital payments company. Our purpose is to help businesses and economies grow by simplifying payments and commerce. We operate in 50+ countries serving governments, banks, fintechs, merchants and public sector companies. We have 2,000+ employees based in our markets serving over 250 financial institutions and 130,000+ merchants.