A prop trading startup based in the UAE came to us before they'd processed a single transaction. They had the product built, the platform ready, and traders lined up. What they didn't have was a way to take payments. Every PSP they approached said the same thing: no processing history, no deal.
This is the cold-start problem in high-risk payments. PSPs underwrite based on track record — chargeback ratios, volume consistency, refund rates. A startup has none of that. The product could be solid, the team could be experienced, but without six months of processing data to point at, most acquirers won't take the risk.
The wall they hit
The company had applied to multiple PSPs directly. All rejected. Some didn't respond at all. The ones that did cited the same reasons: no processing history, prop trading is high-risk, and they don't onboard startups in the vertical without an existing track record.
- Brand new company with zero processing history
- Prop trading vertical — high-risk category for acquirers
- Multiple direct PSP applications rejected
- Platform ready to launch but unable to accept payments
- UAE entity only — no EU presence
Without a first PSP willing to take them on, they were stuck. You can't build processing history without a processor. And no processor will onboard you without history. It's a loop that kills startups in high-risk verticals like prop trading every day.
How we broke the loop
We got them accepted by their first PSP through our existing relationships. When we bring a merchant to a PSP, the conversation is different than a cold application. The PSPs we work with know our onboarding standards, know the merchants we bring are properly packaged, and trust that we've vetted the business. That changes the risk calculation.
We packaged the application properly — business model documentation, projected volumes, compliance setup, website review — and presented it to a PSP that we knew would underwrite a prop trading startup if the application was right. They accepted.
Once the company was live and processing, we moved to phase two. We set up a payment agent entity in the EU. This gave them an EU-based entity that Tier 1 EU PSPs will work with. The EU entity accepts payments via the PSPs and transfers funds to the UAE operational entity through a payment agent agreement.
With the EU entity in place and a few months of clean processing history from PSP one, we onboarded them to two additional Tier 1 PSPs with EU acquiring.
- Packaged and submitted the application through our PSP relationships — accepted where direct applications had failed
- Got the company live and processing on their first PSP
- Incorporated an EU payment agent entity to unlock Tier 1 EU PSPs
- Onboarded to 2 additional Tier 1 PSPs with EU acquiring once processing history was established
- Payment agent agreement in place for fund flow from EU entity to UAE operational entity
The numbers
The company went from getting rejected everywhere to running three Tier 1 PSPs. The first one broke the cold-start loop. The EU entity and processing history opened the door to the other two. Each additional PSP gives them redundancy, better rate negotiation, and the ability to route traffic for higher approvals.
What's running today
The company processes through three PSPs — one via the UAE entity and two via the EU payment agent. Funds from EU-processed transactions flow to the UAE operational entity under the payment agent agreement. They have redundancy, competitive rates, and a payments infrastructure that can scale with their growth.
We manage the PSP relationships and handle ongoing operational needs. As their volume grows and their processing history strengthens, they'll be in a position to negotiate even better terms and add more processors if needed. The hard part — going from zero to live — is behind them.
"Every PSP told us no. FinSet got us to yes, and then got us two more."