Malta and London-based digital finance institution wamo has started operations in Europe where it expects to attract 10,000 customers before the end of 2021.

wamo, a digitally native fintech aimed at small and medium-sized companies, is incorporated in the United Kingdom and has headquarters in London and Malta.

With technology and innovation at its core, the digitally native fintech company aims to compete with traditional financial methods in the delivery of financial services.

This fintech uses smart-tech to streamline every aspect of day-to-day financial management processes making it possible for both businesses and consumers to 'do it all' from one app.

The company is committed to constantly improve the security of transactions and has mechanisms in place to safeguard customers' money through a key partnership agreement with Railsbank.

Last month, wamo raised a one million euros investment from a group of angel investors, bringing the total amount raised to over €1.9 million and securing funding for its expansion plan in Europe.

“Fast, global, agile and fully digital,” wamo hopes to become the solution of choice for over 10,000 European SMEs and retail clients looking for convenient, efficient solutions to their everyday financial management needs.

Registered in the UK and the European Economic Area (EEA), the company grew and settled a position despite the unique challenges of the 2020 market.

It has found that significant value can be unlocked for SMEs when they are given the capability to make or receive payments strategically by attracting rewards, improving working capital, driving efficiency and optimizing processes.

Adoption of paytech to digitise payments and the offer of rewards will help SMEs to extract value for their business.

SMEs need solutions to develop digital capabilities that can be implemented quickly and go beyond basic payments capabilities.

The company has so far received support from investors from Canada, Turkey, Malta and the United Kingdom.

"The future of financial services will be impacted deeply by the emergence of embedded finance: finance that promises to be more internet-like, more interconnected and more customizable, with novel components that can be effortlessly inserted into individual businesses in different sectors," Yanki Onen, CEO and founder of the company, explained.

Mr Onen, the driving force behind the company, has 20 years of experience in the banking and finance industry with a career spanning investments, banking and brokerage, where he developed a keen, solution-focused interest in fintech and the smart future of finances.

"Small and medium-sized enterprises (SMEs) encounter many challenges and complexities in running and growing their businesses, digital solutions have certainly not reached their full potential when fewer than 10 per cent of the 180 million micro and small merchants (MSMs) around the world can accept digital payments. We're here to help change that," he added.

With a potential market of 25.1 million small companies in Europe, wamo states it is looking to become a first choice in the post-pandemic age of fintech.

Issuance of Electronic Money and payment services are provided by PayrNet Limited. With each transaction PayrNet holds an amount equivalent to the money in wamo current accounts in a safeguarding account, giving customers protection against insolvency.

Subsequently to its launch, in its first stage, the company will develop and consolidate its position in Malta. From there the company will expand into Europe.

wamo posits that SMEs' influence on the economy is rapidly growing in Malta and Europe where an increasing number of SMEs and the emergence of their unique needs are creating a new market and challenge for financial technology companies.

"This is because micro and small enterprises are currently underserved with banks generally assuming an ambivalent stance towards them", it suggests.

"In the meantime - hugely accelerated by the behavioural changes of the pandemic - online transactions have sharply increased while PoS (point-of-sale) transactions have shifted markedly towards contactless.

"The company believes that these new consumer habits are here to stay and SMEs are in urgent need of solutions that can meet them quickly and with minimal onboarding friction for businesses and consumers alike."