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sports betting within them, both the state and new merchants in the area are introduced and gaming operators
prime targets for hackers. struggle to implement fixes in time.

We have already seen this play out in two states as they have begun to legalize Solving the issue
gaming and betting. In Pennsylvania, the state had to work closely with various So, what is the solution that PSPs can
payment schemes to understand the actions that needed to be taken to prevent offer to merchants to successfully
fraud cases. Likewise in New Jersey, which saw a dark period where fraud levels reduce the friction caused when
rose after launching new regulations in 2013. entering a new state? The answer
is to be adaptable and prepared. By
Both states have made progress when it comes to combating fraud, but challenges delivering a full payments gateway
still remain (especially in newly regulated states) as new security regulations are that is flexible in what it offers, PSPs
can easily adapt it to the needs of
the merchant in each state, making
expansion a more seamless process.

The payments gateway can also
include security processes to fight
against fraud, although depending
on the severity, having a standalone
system to manage this is also a
possibility. While incorporating
anti-fraud measures may increase
payment friction, providing a more
secure service would lead to a better
experience for customers overall.
However, the best way that payment
providers can reduce the friction of
moving into a new state and help
merchants comply with regulators is
by showing that they are dependable
and a provider that can be trusted.
The ecosystem is a complex one, but
by advising merchants and showing
that, as a provider, you are ahead
of the game and can adapt to any
situation the state puts forward, the
challenges associated with moving
into new markets can be kept to a
minimum.

Working with customers to empower
them with advice and information
is one of the fastest ways to build
trust and ultimately provide a better
experience for customers. When
you give them actual and relevant
information that helps the merchant,
trust is indeed created and friction is
lost.
Kamran Hedjri is the CEO at PXP Financial.
Hedjri has more than 20 years of experience
in holding C-level roles in the fintech and
payments industry. He has built companies
across the payment value chain in Europe,
North and South America. Visit the PXP web-
site at https://pxpfinancial.com, or connect
with him at linkedin.com/in/kamranhedjri.

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