GBC Time has interviewed Korney Lomtev, BDM at 123Hub a cutting-edge Payment Orchestration System designed to simplify payment processing for merchants in emerging markets.
In this interview, we discussed company’s strengths and biggest challenges as well as most interesting insights in the payments industry
How did the company enter the payment solutions industry, and why did it choose this direction?
123Hub entered the payment solutions industry thanks to its extensive experience working with high-risk businesses, particularly in the gambling sector. Before that, we had spent over five years in consulting, helping companies navigate various challenges, including regulatory compliance, licensing, business analytics, and more. Additionally, we were involved in referral agency activities for payment providers, assisting businesses in finding and integrating local payment solutions.
Our partners value us not only for our legal expertise but also for our comprehensive approach to supporting businesses in the high-risk and iGaming sectors. We noticed that many companies struggle with payment system integration, especially when dealing with local providers in regions where English-language support is limited.
That’s why we decided to focus on this field, offering our clients not only reliable payment solutions but also expert guidance that enables them to scale. In the high-risk payments industry, such an approach is rare. Our key advantage lies in the combination of consulting, access to local providers, and a deep understanding of the industry’s specifics.
What are your company’s strengths?
Our main advantage is our direct collaboration with local payment providers, without intermediaries. This allows us to:
- Maintain full control over the integration process.
- Offer our partners the best possible terms.
- Avoid acting as a passive reseller.
We develop customized solutions tailored to the specific needs of each business, making 123Hub a reliable provider for high-risk companies. In some cases, we even refine our documentation based on partner requests.
Local providers often create solutions that are convenient for them but not necessarily for end users — and they may refuse to make adjustments. We solve this problem: if improvements are physically and technologically feasible, we implement them.
What are the biggest challenges in your work?
The main challenges in our industry arise from:
- The low level of professionalism and customer focus among local providers.
- A lack of understanding of processes from partners, especially across different high-risk business geographies.
- Disorganized workflows and communication — even within large companies — leading to endless discussions and missed deadlines.
Some partners expect perfect conversion rates at minimal cost but struggle to articulate their needs clearly. We are used to working in an environment where adaptability, creative problem-solving, and a deep understanding of local markets are crucial.
Additionally, the iGaming and gambling industries have a highly informal atmosphere — casual communication and direct access to C-level executives are common. However, this often leads employees to take a company’s loyalty for granted rather than seeing it as a privilege, which affects their accountability. This is particularly challenging for us, as we come from a legal background, where unmet obligations result in significant financial losses and penalties.
Which regions are your priority?
Our main areas of interest include:
- Asian countries, where traffic has been rapidly growing in recent years.
- The Persian Gulf region.
- Select Latin American countries.
However, for us, it’s not just about the region — it’s about the quality of local providers. If a provider is reliable, the market itself becomes promising.
What are the main risks in your business?
The primary risks are associated with entering new markets and launching solutions with new partners. We always strive to personally meet providers and study local specifics because our most valuable assets are our reputation and strong partnerships.
Sometimes, we roll out payment solutions in new countries and make it clear from the start that it’s our first experience in that market. Some partners are willing to share this risk with us and later benefit from better terms, while others prefer to wait.
Overall, such situations are rare and mostly pertain to niche markets that are not a priority for most industry players.
Is it difficult to find partners?
Finding partners (merchants) is not a challenge for us because we offer unique advantages:
- We work directly with local providers, ensuring better pricing and conditions.
- We provide dedicated service and support, with a team handling first-line partner interactions.
- We build long-term relationships through reliability and flexibility.
However, the market is highly competitive. Many companies resell third-party solutions, leading to inflated prices. There are also many agents — while some help connect with key partners, we prioritize quality over quantity.
Some merchants try to work with providers directly but often encounter fraud. For example, in one of the largest Asian countries, 4 out of 5 providers turn out to be scams. This is why experienced partners recognize our value and stay with us for the long run.
What are the most popular requests from merchants right now?
It depends on the GEO where we already have a proven and reliable solution from a local provider.
There is always demand for a high-quality payment product. Of course, there are occasional custom requests, and in such cases, we find solutions tailored to the specific partner.
What interesting insights can you share about your industry?
The payments industry, especially in the high-risk segment, is evolving at an incredibly fast pace. To stay competitive, it’s essential to continuously monitor:
- The latest trends,
- Regulatory changes,
- Technological innovations.
In recent years, we’ve seen a surge in regulatory updates across various countries, requiring a flexible approach to operations. Additionally, there is growing demand for local payment solutions in emerging markets.
Fintech has remained one of the top five most attractive industries for investment for years. This comes as no surprise — finance is the lifeblood of business, circulating throughout the entire economic system.
Thanks to our positioning at the intersection of regulation and payments, we have access to the latest market insights. On one hand, we track developments in regulations; on the other, we observe how offshore markets are evolving in the payment sector. Operating in the high-risk segment allows us to stay at the forefront of changes in the iGaming industry, ensuring that we can swiftly adapt to new challenges and opportunities as they arise.
