How the fintech became the first licensed payment institution in the territory

About

The fintech, launched in 2022, is the first 100% online payment institution in this French territory. It offers the population a payment account, an international card, a mobile payment system, and all the essential features needed to carry out their transactions within a single application. The goal is to enable autonomous money management, with real-time payments and transfers.

A key and attractive element of the fintech’s offer is the International Mastercard linked to the account. This card allows users to make purchases at merchants or withdraw cash from ATMs, both within the territory and abroad. Thanks to a QR code generated directly on a merchant’s checkout system, customers can pay for their purchases with their smartphone while maintaining an overview of their expenses and real-time balance through the app.

Finally, the fintech is expanding its services by integrating interbank transfers via the SEPA COM network, thereby facilitating financial transactions beyond local borders.

After just two years since its launch, the fintech has already been recognized in the territory with the Trophées du Numérique award in 2022 and successfully completed its first fundraising round.

Access to financial services in the territory

Banking services in the territory face several major constraints:
a. geographical isolation and the dispersion of islands make access to services complex,
b. a heavy reliance on cash, leading to high operational costs,
c. the gradual disappearance of checks and the growing importance of card payments,
d. administrative procedures for opening a bank account remain burdensome, often requiring a visit to the nearest branch,
e. the lack of physical bank branches on many islands exacerbates these challenges.

In terms of payment methods, card usage continues to grow, although checks, though fewer in number, still account for significant amounts.

This overseas territory is characterized by the use of private payment cards, issued by local banks and accepted only within the territory. However, these cards are losing appeal among customers, who are now seeking more flexible options, particularly the ability to make online purchases internationally.

The fintech was looking for a fully digital solution, accessible across the entire territory with minimal connectivity, capable of evolving with its needs, and easily managed by a small team.

Launching a Payment Service with Skaleet Core Banking

The fintech was looking for an open, modular, and scalable solution. In addition to offering an intuitive user experience, the Skaleet solution is perfectly suited for small back-office teams.

One of the fintech’s main objectives is the financial and economic inclusion of the most vulnerable populations. Combined with the territory’s geographic isolation, this goal made the fintech the first French player to launch a fully digital onboarding process compliant with French regulations. Since 2018, France has authorized two ways to complete remote onboarding:

The customer goes to a branch to confirm their identity or makes a transfer from an account in a French financial institution, or

Identity is verified remotely using an electronic identification method with a substantial assurance level based on a qualified certificate. These qualifications are defined under the eIDAS regulation, which benefits from mutual recognition across the European Union. In France, the ANSSI (National Cybersecurity Agency of France) is one of the bodies responsible for its implementation.

Since the first option went against the fintech’s goal of financial inclusion, the team quickly turned to the second option (once available) by integrating Ubble by Checkout, ANSSI-certified. This solution allows anyone, even on the most remote islands of the territory, to open an account end-to-end in just a few minutes via the app, without traveling—even if it’s their very first account with a financial institution. This integration benefits not only end customers, as the enrollment form and ID verification are completed in under 15 minutes, but is also perfectly adapted to the fintech’s small team size. The success rate is high: 99% of requests are processed remotely, only 1% in-branch, with 76% of verifications certified annually. With just about ten people, the team successfully solved one of the territory’s biggest challenges.

Account opening also requires, due to the fintech’s license, strict compliance with AML/CFT (Anti-Money Laundering and Counter-Terrorism Financing) regulations. This involves customer screening at onboarding (FEE), carried out in real time in partnership with LSEG (formerly Refinitiv), ensuring a smooth and fast user experience. As a result, the time between downloading the app and opening an account is less than 48 hours. In the same AML/CFT framework, the fintech also monitors transactions through a partnership with AML Factory.

From launch, and in the context of payment methods, the fintech identified the importance of offering an international card (Mastercard). This feature was made possible through Skaleet Core’s integration with Treezor via authorization requests, making the fintech Treezor’s second client to use this solution. Customers can request their card as soon as they open their account in the app and instantly receive a virtual card in their application. Full self-service card management is also available in the app. Between July 2023 and July 2024, card transactions accounted for 65% of all operations carried out.

Since its launch, the fintech has been offering interbank transfers through a correspondent bank to and from all banks in the territory and/or mainland France. These operations, which represented 5% of all transactions last year, will significantly evolve with the introduction of SEPA transfers and personalized account IBANs. Thanks to the SEPACOM project, which enables the use of the SEPA standard for euro transfers and direct debits, and the fintech’s partnership with the BPCE Group, customer experience will be enhanced, particularly in meeting expectations for income domiciliation.

In addition, the fintech has worked to automate recurring tasks to ease back-office operational workload and facilitate ecosystem integrations. Thanks to the SPA automation tool available in Skaleet Core Banking, this goal has been successfully achieved. The fintech also aims to automate internal and compliance controls via SPA, while optimizing commercial communication with its customers.

A Payment Service for the Entire Population

Since its launch, the fintech has successfully built an efficient payment institution with a small team of just 14 employees, including only 2 in IT and 3 in the back office, while attracting 20,000 customers.

Thanks to Skaleet’s Core Banking solution, the fintech was able to offer a 100% digital onboarding process with no physical appointments, becoming the first service of its kind in this overseas territory.

The deployment of the SPA module enabled quick integration with three billers, and SEPA processing times were reduced, optimizing interbank transfers.

The fintech also stands out with its international Mastercard offer, available with no income requirements, orderable in just one click via the app. It allows customers to manage their balance in real time and make payments online or abroad.

In addition, the opening of a branch and a customer service available during local hours strengthens the fintech’s commitment to proximity and customer satisfaction.

After only three years, many customers have joined the fintech through word of mouth, confirming the reliability and quality of the service.

With Skaleet’s Core Banking, the fintech managed to launch a payment institution from scratch with a lean team (14 employees, including only 2 in IT and 3 in the back office, and 20,000 customers).