From Credit to Compliance: The Risk Rollercoaster in B2B Payments

Trust is both the foundation and the future of payments.

But that doesn’t make maintaining it any easier. There are five big threats to maintaining that trust between payments and financial services providers and the end-customers they serve: Credit risk, payments risk, counterparty risk, fraud and security risk and compliance risk.

While each risk vector demands attention, Boost Payment Solutions Chief Compliance Officer Elly Aiala told PYMNTS during a conversation for the “What’s Next in Payments: The Payments Circle of Trust and Risk” series that two key risks stand out for her: fraud and security risk, and compliance risk.

The evolution of fraud and security risk, as well as compliance risk, is driven by a convergence of technological advancements, the increasing sophistication of cybercriminals and a surge in digital payment adoption.

“Bad actors are leveraging technological advances, such as generative AI [artificial intelligence] to launch increasingly sophisticated attacks … preying on opportunities like product launches or exploiting regulatory changes. It’s a constant challenge,” Aiala said.

She pointed to the pressures of instant gratification in the digital world, where a poor user experience can drive customers to competitors.

And with that efficiency comes the responsibility to identify and mitigate risks creatively.

Constant Battle

Advancements in technology have introduced new efficiencies but also new vulnerabilities.

This makes compliance a priority.

“Compliance teams are now responsible for much more than they were a decade ago. … Compliance risk has expanded as teams are tasked with overseeing everything from data privacy and security to physical compliance and much more that lies between,” Aiala said. “It’s no longer enough to specialize in your domain — you need to understand the complexities across all departments.”

The rise of new regulations — domestically and internationally — adds another layer of complexity and challenge for payment providers. And payments risk has also seen a rapid evolution, largely due to globalization and the growing complexity of data transmission.

“Each new market brings its own anti-money laundering laws, customer protection standards, and sanction requirements,” Aiala said. “Maintaining operational excellence while expanding globally demands strategic planning and a commitment to high trust standards.”

She advocated for a foundational understanding of regulatory goals — what is the regulation trying to achieve and how — as a basis for designing compliance programs that align with both innovation and transparency.

“Regulators, customers, and partners all want to see not just that you comply, but how you comply,” she said. “This requires ongoing education and communication to build trust across the ecosystem.”

To counter these threats, Boost has implemented solutions like Boost 100XB®, an innovative cross-border payments platform that simplifies and streamlines international transactions for buyers while effectively mitigating cross-border payment risks, including counterparty risk and reconciliation complexities.

Balancing Compliance, Innovation

As open banking and API-driven partnerships proliferate, vendor management has become more of a critical factor in mitigating risk.

Aiala stressed the importance of understanding not only a partner’s systems but also their own downstream partners’ systems. “Open banking creates fantastic growth opportunities, but it also increases risk. You need strong vendor management programs tailored to your industry and continuously evolving to meet new challenges,” she said.

At the same time, the payments sector is witnessing an influx of nontraditional players, from FinTech startups to financial influencers touting the latest cryptocurrency meme coin. Aiala warned of the dangers of “get-rich-quick” schemes and emphasized the importance of distinguishing between genuine innovation and opportunistic ventures.

“Trust must be earned and evidenced,” she said. Boost’s record of zero fraud losses over its 15-year history exemplifies the kind of long-term commitment needed to build and maintain trust.

When it comes to partnering with payment providers, Aiala said customers are primarily focused on two questions: What efficiencies can you bring to my payments process? And how will you do so in a trusted, reliable and transparent manner?

“In the payments space, where trust is paramount, there’s little room for error,” she said.