How To Identify Problems in Payments

So you can build something that stands out in the crowd

In payments, everyone’s hoping to identify and solve the next big issue.

New products and services emerge constantly, each aiming to revolutionize how money flows, make payments more efficient, or give merchants better tools.

Yet, here’s the truth: many solutions miss the mark.

They often dive headfirst into development without truly understanding the problems that need solving, creating answers to questions that no one asked.

In such a competitive landscape, standing out means zeroing in on the challenges that others tend to overlook.

The majority of new initiatives in payments fail because they don’t address the issues that keep leaders responsible for payments awake at night.

Too many founders and teams chase trends, focusing on flashy solutions rather than solving the deeper problems their market is grappling with.

But to create lasting impact, whether you’re in a startup or a global company, you need to focus on what decision-makers genuinely care about and are willing to prioritize.

This is where effective problem-hunting comes in.

Identifying the right problems isn’t just about market research; it’s about curiosity, deep conversations, and a readiness to go beyond the surface.

By focusing on pressing, unsolved issues, you’re positioning yourself, your team, or your company to create something truly valuable, something that’s not just “nice to have” but essential.

In this newsletter, I will explain how I help payments companies identify problems, structure them so they are easier to evaluate, and turn them into products that merchants actually want.

Let me explain…

1. Target Fast Growing Sub-Markets

If you want to create meaningful change in payments, start by planting your flag in a market that’s not just big but expanding rapidly.

Consider segments like Buy Now, Pay Later (BNPL), account-to-account payments, or cross-border transactions, areas where demand and complexity are only growing.

Working within a rising market means tackling increasingly important issues, giving you the space to develop solutions with real impact and longevity.

However, a large market alone isn’t enough.

Aim to focus on segments where the challenges will remain relevant or even increase over the next 5 to 10 years.

For instance, while cross-border payments aren’t new, globalization is amplifying the need for faster, more secure, and cost-effective solutions.

Similarly, BNPL is evolving as regulatory and consumer expectations shift, presenting ongoing opportunities for those who can balance accessibility and responsibility.

By choosing problems that are future-ready, you’re preparing to stay relevant as these issues and their importance continue to grow.

When you target a large, dynamic sub-market within the payments industry, you align with the natural flow of merchants’ needs, regulations, and technology. This approach positions your initiative, whether at a startup, a scale-up, or an established payments company, to adapt and thrive rather than become outdated as trends shift.

You’re not just solving today’s problems but building something that can scale with tomorrow’s needs.

2. Focus On Decision-Makers, Not End-Users

This might come as a surprise, but in payments, the end-users aren’t always the ones who decide to invest in a solution.

So, when you are pitching a product to an external buyer, it’s critical to connect with the real decision-makers, those with the authority and budget to make changes.

End-users may love a payment method, but if they are not the ones deciding what is implemented, it is unlikely to move forward.

Knowing who has the final say lets you align your solution with the priorities that matter most.

Typically, in technology companies, departments like product, engineering, and finance hold significant purchasing power.

These teams are responsible for goals such as enhancing user experience, reducing costs, or optimizing cash flow, making them open to effective solutions.

Product teams may look for ways to scale efficiently or meet the demands of new markets, while finance teams seek solutions that improve operational efficiency or streamline reconciliation.

Conversely, departments like marketing and customer support, although vital, tend to operate on targeted or limited budgets to either drive ROI or minimize expenses.

By targeting the right departments, you position your solution to be seen as a strategic investment rather than an optional add-on.

Aligning with decision-makers’ goals, whether it’s driving growth in a startup or supporting efficiencies in an enterprise, demonstrates that your solution can make a measurable difference.

Ultimately, addressing the priorities of those with both the need and the authority to act sets you apart from others competing for attention.

3. Gather Insights Through Interviews and Surveys

Once you’ve identified who you need to talk to, it’s time to dig deeper.

Developing an outreach strategy is essential here.

Use LinkedIn to connect with industry professionals, join relevant groups, and consider attending conferences or industry events where you can initiate real conversations with decision-makers.

Digital tools like Calendly and Zoom make it easy to set up meetings, while surveys sent to your network can help you gather broader insights.

Your goal should be to engage as many relevant voices as possible, positioning yourself as someone who genuinely wants to understand their challenges.

When you’re in these meetings, listening is your greatest asset.

Asking the right questions and letting them lead the conversation allows you to dig into their underlying pain points.

For example, if someone mentions high chargeback rates, don’t just stop there; ask about the broader impact on operations, what solutions they’ve tried, and how they measure improvement.

Often, the true insights lie beneath the surface, waiting to be uncovered through thoughtful follow-up questions.

Combining qualitative feedback with quantitative data, such as the frequency and cost of issues, provides a well-rounded view of what’s truly at stake.

This dual perspective lets you frame your solution as one that offers real, measurable impact.

When decision-makers see that you understand their challenges deeply, you’re building credibility and making your solution one they’re eager to explore further.

4. Turn Answers Into Inputs To Define Problems

After gathering these insights, it’s time to organize them into a clear and actionable format, the Problem Definition Document (PDD).

A PDD is more than a summary of interviews; it distills the pain points and identifies patterns across conversations, giving you and your team a roadmap for addressing what matters most.

It’s a tool that guides solution design and aligns stakeholders around problems that are worth solving.

To create a PDD, start by reviewing your notes and identifying recurring themes.

Then, drill down into the impact each issue has on the company.

For instance, is a problem affecting revenue, causing operational friction, or impacting compliance?

By going beyond surface-level frustrations, you’ll differentiate between minor inconveniences and the critical challenges your solution needs to tackle.

Prioritize these issues by frequency and impact, whether it’s lost revenue, high costs, or regulatory risks.

A well-crafted PDD clarifies the problems and justifies why they’re worth solving.

It sets a foundation for solutions that address high-stakes challenges and resonate with the decision-makers who will ultimately back them.

5. Be Realistic About Your Target Market’s Willingness to Make a Change

Identifying an urgent problem is great, but it doesn’t help if the people affected don’t have the authority to solve it.

This is a common pitfall in payments, especially for departments that are indirectly affected but don’t have a say in the decision-making process.

While these teams may appreciate your solution, not being responsible for the decision-making can make it difficult to implement it.

To avoid this issue, focus on departments that not only feel the pain but also have the authority to allocate resources toward solving it.

Look for “burning problems,” those that came back as high in the previous data collection exercise, and where decision-makers indicated that they are eager to act.

When an issue is tied directly to revenue, compliance, or operational efficiency, leaders are more likely to free up the budget to address it.

For instance, finance teams dealing with transaction inefficiencies are more likely to invest in solutions that promise cost savings or optimization benefits.

By prioritizing these urgent, budget-backed problems, you position your solution as a high-value investment rather than a “nice-to-have.”

This strategy increases your chances of success, whether you’re working with a small team or in an enterprise, by aligning your offering with the needs and financial realities of your target buyers.

6. Breakdown Answers into Scores

Now that you have a clear list of issues, it’s time to quantify their severity.

Scoring each problem helps you separate high-priority issues from those that may not be worth pursuing.

During your conversations, ask decision-makers to rate each problem on a scale of 1 to 10.

A rating of 8 or above indicates a “burning problem,” one that demands immediate attention and has a tangible impact on their goals.

The sweet spot for your solution lies in finding problems that score high in both severity and willingness to pay.

A problem rated urgent but lacking budget isn’t viable for long-term growth, just as an issue with funding but low urgency may not offer enough value.

Focusing on high-severity, budget-supported issues allows you to narrow your scope to the opportunities that hold the greatest potential, creating a targeted solution that appeals to those ready to invest in real change.

Final Thoughts

Focusing on the right problems is what sets successful solutions apart in the payments industry.

While others chase trends or deliver solutions that skim the surface, the ones that stand out dig deep, targeting real, impactful challenges.

Concentrating on high-stakes issues builds something that will not only meet today’s needs but also become a valuable, lasting part of your buyers’ toolkit.

Whether you’re an innovator in a startup, a professional aiming to influence change in a large organization, or a team leader at a growth-stage company, the approach remains the same.

Use these steps to target a growing market, engage decision-makers, gather meaningful insights, and refine your focus to create solutions that make a difference. With this strategy, you’ll build a differentiated, resilient foundation that keeps you relevant and essential in an ever-changing world.

Thank You for Reading. Feel free to Like, Comment, Share, or Post on Your Socials. I appreciate all the feedback I can get.

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P.S. If you want to work with me in a larger capacity, either speaking, advisory, or consulting, feel free to email or DM me.