Blog and Updates
Why Traditional Banks Need a White-Label Payment Gateway to Stay Ahead
Here's why traditional banks must adopt a white-label payment gateway to stay competitive. Neobanks or digital banks may be popular, but traditional banks can grow strategically by outsourcing seamless, branded payment solutions that will greatly enhance customer experience, and future-proof their banking operations.
By: Kristel Serran
Payment Gateway
With the current popularity of digital banks in the Philippines and the increasing demands for better payments technology, traditional banks face increasing pressure to offer better solutions, especially for consumer banking.
But what does better even mean?
Innovation, security, and centralization are the main things the growing millennial market1 needs. These are the tech-savvy, jetsetting generation that are honestly tired of the traditional banking, remittance, and payments services.
Millennials2 also happen to make up the second biggest number of Overseas Filipino Workers (OFWs) worldwide.
According to the Philippine Statistics Authority (PSA) 2023 Overseas Filipino Workers survey3 in the period of April to September 2023, “Filipino workers who were 45 years old and over accounted for the biggest number of OFWs who worked abroad in 2023 at 24.1%. This was followed by [millennial] OFWs aged 30-34 years with 23.5% and those aged 35-39 years with 18.6%.”
Add this to the fact that the Philippines is the 4th largest remittance4 corridor in the world. All these years, our hardworking OFWs have regularly sent remittances with no affordable and centralized payment platform available.
Local banks and financial institutions are sleeping on this opportunity to process billions of dollars’ worth of transactions.
It’s about time traditional banks and financial institutions adapt to the times. Partnering with a white-label payment gateway will allow for a strategic growth, all while staying lean and true to their brand.
Think of it as affordably outsourcing what would otherwise be an expensive in-house technology and expert payment services.
From the name itself, this is a payment solutions provider that allows businesses to use, rebrand, and customize the technology as their own.
Imagine running your usual, day-to-day financial services, but instead of building your own in-house payment system (which takes years and millions in investment), you partner with an expert service that provides all the technology—but with your bank’s branding on it.
Your customers enjoy seamless payments experience, but they only see your bank—not the technology provider behind it.
It goes without saying that developing an in-house payment processing system is resource-intensive and time-consuming.
This is where white-label solutions come in. They enable institutions to swiftly launch customized payment services under their own brand, ensuring a competitive edge in the dynamic fintech environment.
GoTyme Bank, a collaboration between the Gokongwei Group and Tyme Group, utilized Tyme's existing digital banking infrastructure to swiftly enter the Philippine market. This approach allowed them to offer comprehensive banking services without the delays associated with developing proprietary systems.
Building proprietary payment infrastructure entails significant investment in technology, compliance, and ongoing maintenance. White-label gateways offer a cost-effective alternative, providing access to advanced features without the associated development expenses.
BookMyShow, India's leading online ticketing platform, integrated a white-label payment gateway to manage transactions efficiently. This integration enabled them to avoid the substantial costs of developing an in-house payment system, allowing for resource allocation to other critical areas.
Reputable white-label providers prioritize security and consistently adhere to stringent regulatory standards.
It definitely comes with the trade, as Development and Security are their biggest selling points. Traditional banks can remain ‘traditional’ and operate on what has worked for them over the years, all while offering world-class payments services.
By leveraging the expertise of an experienced white-label payment gateway, banks can offer bigger and better risk management solutions that comply with ever-evolving regulations, such as the EU's Digital Operational Resilience Act (DORA) effective from January 2025.
One of the main keywords you need to associate white-label payment gateways with is ‘Outsourcing.’
Outsourcing payment solutions and world-class risk-management tools allow financial institutions to concentrate on their primary services such as lending and wealth management, while still offering top-tier payment and risk-management solutions to their clients.
Leave it to the experts. Concentrate on expanding your core products and services, and let the specialists handle your payment processes.
Because their business relies on cutting-edge technology, white-label providers invest in continuous innovation.
They make sure to integrate or connect with providers that offer AI and blockchain to enhance payment efficiency and security.
Partnering with such providers ensures access to the latest technologies without the burden of internal development.
One single integration can open you up to a world of opportunities.
AltPayNet offers a comprehensive suite of online payments services. Not limited to its white-label payment gateway, it also offers Software-as-a-Service merchant payment solutions that can be customized to every industry needs, as well as cybersecurity and compliance services, among others.
By partnering with AltPayNet, financial institutions can access advanced technologies without the need for internal development.
AltPayNet exemplifies the advantages of white-label payment gateways, offering a comprehensive suite of services tailored for financial institutions:
By partnering with a white-label payment gateway like AltPayNet, banks and financial institutions can effectively navigate these trends, offering innovative and secure payment solutions that meet the demands of the modern financial landscape.
Incorporating a white-label payment gateway is a strategic move for banks and financial institutions aiming to stay competitive in 2025.
It offers accelerated market entry, cost efficiency, enhanced security, and access to cutting-edge technology.
AltPayNet's comprehensive services and global expertise make it a compelling partner in this endeavor, enabling institutions to deliver superior payment solutions under their own brand.
Send us an email directly to info@altpaynet.com to get started.
Sources:
1For Younger Consumers, Payments Is Banking. Why That’s Trouble for Traditional Institutions
2Millennials are shaping financial tech’s future: A blueprint for brands
3Philippine Statistics Authority, 2023 Overseas Filipino Workers (Final Results)
4World Bank: The top five recipient countries for remittances in 2024
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