March 6 (SeeNews) - The Bulgarian unit of Brussels-headquartered payment services provider iBanFirst recorded over 500 million euro ($542.5 million) in transactions over the past two years, it said on Wednesday.
Over the same period, the company nearly doubled its clients to over 1,000 companies monthly, underlining the transition towards digital financial services in Bulgaria, iBanFirst said in a press release.
Bulgarian small and medium-sized enterprises (SMEs) and mid-caps are shifting from traditional banking services to fintech solutions to access fast, affordable and secure services, including multi-currency payments, foreign exchange services and personalised hedging strategies, which enhance efficiency in trade operations.
Last year, demand for iBanFirst's hedging services surged by 129% due to the increased volatility in the foreign exchange market.
Bulgarian companies have also faced logistical challenges sourcing raw materials or intermediate goods from Ukraine and Russia, leading them to shift towards Turkey and other non-European suppliers.
Businesses in agriculture, retail and information technology are integrating hedging strategies into their trade relations with partners in the EU, Turkey, the U.S. and China. Currency hedging tools such as forward contracts enable businesses to secure exchange rates for future international transactions, mitigating currency unpredictability.
"In this changing geopolitical and economic context, Bulgarian businesses have showcased remarkable resilience, agility, and innovation, skillfully transforming obstacles into opportunities for growth. Their adaptability in the face of adversity highlights a positive dynamic within the Bulgarian economy," iBanFirst Bulgaria country manager Dean Todorov said.
The company entered the Bulgarian market in 2022 as part of its expansion in Southeastern Europe.
iBanFirst has 13 offices across Europe, covering France, Belgium, the Netherlands, Germany, Romania, Bulgaria, Hungary, Italy, Spain and the UK. The fintech group's overall monthly transaction volumes exceed 1.5 billion euro.
($ = 0.9217 euro)