The financial services industry is evolving at a rapid pace. From fintech startups redefining payments to global institutions rolling out digital-first offerings, the sector is expected to reach $37.5 trillion by 2027. This growth is powered by rising digital adoption, the push toward financial inclusion, and increased demand for seamless cross-border services.

Expanding a financial services business into new markets is the ultimate growth opportunity. More customers. More transactions. More revenue streams. However, just as in travel or e-commerce, scaling across borders also presents significant operational and regulatory risks.

You’ll need to navigate:

• Ever-changing financial and tax regulations

• Currency volatility and exchange complications

• Cross-border payment and settlement risks

• Fraud, chargebacks, and money laundering threats

• Liability tied to the customer–provider relationship

Without the right systems in place, these challenges multiply quickly. Internal teams can end up swamped with compliance audits, Know Your Customer (KYC) requirements, Anti-Money Laundering (AML) checks, and dispute resolution. What should be streamlined financial innovation becomes tangled in paperwork and regulatory roadblocks.

What makes Financial services so operationally complex?

Unlike many industries, financial services are highly regulated and carry much higher stakes. Here’s why scaling across borders is particularly risky:

1. Complex Regulatory & Compliance frameworks
Every country has its own financial authority and compliance rules. From AML laws to KYC requirements and tax reporting obligations, failing to comply can mean fines, license revocations, or even criminal liability. What works in one country may be illegal in another.

2. Currency exchange & settlement risk
Financial institutions deal with multiple currencies, fluctuating exchange rates, and settlement delays. Mismanaging this not only impacts profitability but can also lead to liquidity problems and strained customer relationships.

3. Fraud, Chargebacks & Financial crime
The financial sector is a prime target for fraudsters. From card-not-present fraud to money laundering, the risks are constant. Chargebacks not only cost money but also damage a company’s reputation and can trigger stricter regulatory scrutiny.

4. Cross-border tax & reporting obligations
From withholding tax to transaction-level reporting, international financial services companies face heavy oversight. Regulatory frameworks like FATCA (Foreign Account Tax Compliance Act) and CRS (Common Reporting Standard) add another layer of complexity for institutions handling global clients.

5. Data privacy & security
Financial institutions handle some of the most sensitive customer data, from bank details to identity documents. Compliance with laws like GDPR, POPIA, and PCI-DSS isn’t optional. A breach here isn’t just about penalties; it destroys customer trust.

Why You Need a Merchant of Record (MoR)

That’s where the Merchant of Record (MoR) model comes in, serving as the operational backbone for risk-heavy financial transactions. By acting as the legal seller of record, the MoR assumes liability for regulatory, financial, and payment obligations, allowing your brand to focus on product innovation and customer growth.

With an MoR in place, financial services companies can:

• Enter new markets faster without establishing a local legal entity

• Handle KYC/AML compliance and reduce the burden on internal teams

• Simplify multi-currency payments and minimize exchange risk

• Mitigate fraud and chargebacks with robust prevention tools

• Streamline tax reporting and remittance across multiple jurisdictions

• Stay compliant with evolving financial regulations worldwide

Instead of fighting regulatory fines, your business stays focused on growth, customer acquisition, and delivering financial inclusion.

Why Startbutton is the MoR built for Financial services

At Startbutton, we help financial service providers scale across Africa and beyond without being buried under compliance and regulatory complexity. Whether you’re a fintech startup launching in Ghana or an established platform expanding into Kenya, Nigeria, or 14+ African markets, Startbutton serves as your local MoR partner.

We handle tax, AML/KYC compliance, cross-border payments, and fraud protection, ensuring your business stays secure and compliant while unlocking new revenue opportunities. With Startbutton, your team can shift energy from regulatory firefighting to what matters most: building trusted financial products and growing your customer base.

Conclusion

The financial services industry has boundless opportunities, but with opportunity comes risk. From compliance to fraud, the hidden costs of scaling can derail even the most innovative business.

A Merchant of Record like Startbutton doesn’t just cut risk, it turns complexity into clarity. By handling the operational heavy lifting, we make it possible for financial service providers to expand boldly, serve more customers, and grow with confidence.

Ready to scale your financial services business across Africa, without the risk? 

Discover how Startbutton can help