The views expressed in this article are solely those of the author and should not be attributed to the European Payments Council.

We spoke with Ivo Gueorguiev, the co-founder of Paynetics, which joined the European Payments Council (EPC) on 1 January 2025. We discussed Paynetics’ unique approach, challenges in the payments market, and their vision as an EPC member.

Could you tell us about Paynetics and what makes it special?

Paynetics is a leading provider of embedded finance solutions, enabling businesses to integrate payments seamlessly into their products. We are dual-regulated in the European Union and the United Kingdom.

We are a use-case agnostic, deep-payment infrastructure provider offering comprehensive embedded finance solutions to Business to Business (B2B) and Business to Business to Consumer (B2B2C) customers in one place, including card acceptance and issuance, payment accounts and transfers. We use a variety of channels – application programming interfaces (APIs), software development kits (SDKs), or full-service white labels that mean we’re prepared for the exponential growth of embedded finance. We are also very focused on anti–money laundering (AML), fraud monitoring, and compliance to ensure sustainability and scalability. 

What are the perceived strategic challenges in the retail payments and account-to-account (A2A) payments markets? 

Both the retail payments and A2A payments markets are shaped by the need for innovation, regulation, and trust. Retail payments are highly susceptible to fraud, cyberattacks, and data breaches, requiring significant investments and market consolidation. Additionally, consumers demand fast, frictionless, and personalised payment experiences that align with high security and regulatory requirements and complex AML procedures. 

Retail payment providers must also navigate a complex and ever-evolving regulatory environment – especially with the third Payment Services Directive (PSD3). Regulation is increasingly shifting responsibility to payment providers, creating a real risk of deteriorating customer experience and debanking.

One underestimated issue is Big Tech. The dominance of global tech firms raises concerns over data security and market power, potentially undermining local providers.

A2A challenges us in terms of achieving interoperability between different banks and financial institutions. A lack of standardised protocols can lead to inefficiencies. The next hurdle is getting consumers and businesses to trust the system. Educating the public about the advantages and risks associated with A2A payments is crucial.

Finally, A2A payment solutions need to integrate into existing financial systems, such as traditional banking networks, digital wallets, and e-commerce platforms with minimal disruption. This requires coordination between a range of stakeholders.

What were the key drivers for Paynetics to join the EPC? 

First, we wanted the opportunity to engage in a dialogue with regulators, helping shape policies that affect the European payments landscape. 

We are excited to be at the forefront of innovation and be actively involved in new payment technology initiatives that align with market trends and consumer demands.

We can benefit from and also foster collaboration and innovation in the European payments space through access to a broad network of payment service providers Furthermore, we can enhance operational efficiency and reduce costs by adhering to standardised payment systems within the Single Euro Payments Area (SEPA).

What are the ongoing and future EPC activities to which Paynetics expects to contribute most?

Our focus would be on the further development and increased usage of SEPA payment schemes and broadening SEPA’s coverage. Paynetics’ dedication to customer experience, coupled with its robust technology and strong focus on compliance, would ensure the reliability and convenience of transfers in an increasing number of use cases.

Paynetics is actively involved in the emerging technologies that underlie future EPC activities. We can drive advancements in cross-border payments by offering cost-efficient and transparent solutions. Paynetics will promote API standardisation and SDK proliferation under PSD3, strengthen fraud prevention using AI-driven tools, and support small- and medium-sized enterprises (SMEs) with tailored instant payment solutions. Also, Paynetics will align with EPC sustainability goals through eco-friendly technologies and paperless payment systems.

Lastly, what future developments and challenges do you anticipate in the near term?

One challenge is the widespread adoption of real-time payments supporting not only person-to-person transfers but also business transactions. Instant payments will likely replace traditional payment methods for many use cases, bringing further challenges – predominantly fraud prevention and compliance adherence. Reconciling these conflicting goals will be critical.

Digital and cryptocurrencies are here to stay. As the European Central Bank (ECB) considers a digital euro, integrating these new payment methods within the existing ecosystem will require innovation and coordinated efforts among industry players.

Clearly, we cannot talk about near-term trends without mentioning AI and machine learning. They are already transforming the European payments landscape by improving fraud detection, risk management, and customer experience. We will continue to look for new ways to apply them.

I hope that in the very near term, we’ll be able to have a unified European digital identity and authentication process. It is difficult to comprehend why this space has remained so fragmented given the importance regulators place on AML and the amount of resources payment providers spend on it. I expect that as part of the EU’s Digital Identity initiative, stronger customer identification methods will be implemented to improve fraud prevention and streamline payments. I also anticipate that the Electronic Identification and Trust Services (eIDAS) regulation will enable faster and more secure digital identities for consumers.