As a payment solutions provider focused on the B2B market, FinXP has expanded its operations across Europe. Having recently celebrated your 10th anniversary, what role have Malta’s unique characteristics played in this success?

Malta has provided a solid foundation for FinXP’s growth. As an EU member state, Malta offers a stable and business-friendly environment, which is particularly attractive to fintech firms like us. The country’s robust regulatory framework, including the licensing regimes overseen by the Malta Financial Services Authority (MFSA), has enabled us to operate with confidence while ensuring compliance with stringent EU regulations.

From a cultural perspective, Malta’s emphasis on multilingualism and international business has been a great asset, especially as we serve clients in diverse markets across Europe. Overall, while our success over these past 10 years has been driven by many factors, Malta’s characteristics have undoubtedly played a supportive role.

What major changes have you observed in paytech over the past decade?

Over the past decade, the European paytech industry has seen significant shifts, with regulations like PSD2 and the rise of open banking driving innovation. Instant payments are becoming the norm, and businesses now expect seamless cross-border transactions. We’ve also witnessed the growth of digital currencies and alternative payment methods, alongside an increased focus on cybersecurity and fraud prevention. Overall, the paytech sector has become more customer-centric, with solutions tailored to specific business needs.

“Malta’s strong connectivity – both digital and logistical – enables businesses to efficiently manage European operations from an accessible location.”

Why should a fintech firm consider Malta as a base of operations?

Malta offers fintech firms a strategic base within the EU, providing access to the EU market under a stable regulatory framework. The island is business-friendly and has an attractive tax regime which supports corporate growth. With a growing fintech ecosystem, a multilingual workforce and strong digital infrastructure, Malta has evolved into a place where fintech firms can start up and scale effectively.

Is there any benefit to setting up in Malta and operating abroad?

Setting up in Malta offers several advantages. Being in the EU provides Maltese businesses with access to European markets and facilitates compliance with EU regulations. Additionally, Malta has established itself as a hub for fintech, with a supportive ecosystem. The island’s small size fosters close relationships with regulators, which can expedite decision-making processes. Moreover, Malta’s strong connectivity – both digital and logistical – enables businesses to efficiently manage European operations from an accessible location.

What are the major challenges affecting companies like yours in Malta?

One of the main challenges for fintech firms like FinXP is navigating the increasingly complex regulatory landscape across Europe, particularly as compliance demands continue to evolve. Staying ahead of changes in areas like anti-money laundering, cybersecurity and data protection requires significant resources. Additionally, while Malta’s financial services sector is growing, accessing specialised talent can sometimes be challenging. On the other hand, given the country’s favourable climate and its quality of life, many companies can and do attract top talent from abroad.