A Costly Lesson in Market Vulnerability
May 02, 2025
Earlier this year, a prominent app developer faced a devastating blow in Latin America. A huge payment from a major mobile service provider from funds owed under a long-standing revenue-share agreement—was rerouted through a third-party intermediary. The intermediary, presented as a local payments facilitator, had no operational credibility and, as investigations revealed, was little more than a shell company.
Despite receiving the full payment from the mobile operator, the intermediary failed to pass on a single euro to the app developer. The incident raised immediate concerns of potential insider fraud and collusion. But while these suspicions may ultimately fall under criminal or regulatory jurisdiction, the financial damage is real—and preventable.
The Problem with Weak Enforcement Markets
In emerging markets where financial oversight, contract enforcement, and business transparency are often fragile, engaging intermediaries without rigorous controls can quickly become a liability. In this case, the app developer’s trust in a seemingly legitimate local agent cost it hundreds of thousands of euros and opened the door to reputational and legal complications.
This scenario underscores a broader risk: that of relying on informal or under-vetted commercial structures in regions where legal recourse is slow, costly, or practically non-existent.
What Could Have Been Done Differently?
At Payfor, we specialise in protecting companies from precisely these risks. Through VendSafe—our specialist programme for risk management—we provide an end-to-end solution to help international brands protect their revenue streams and enforce payment compliance globally.
A more secure structure could have included early due diligence to vet the intermediary’s legitimacy, robust contract terms enforceable across jurisdictions, and a dedicated accounts receivable oversight team to monitor, engage, and escalate any late or missing payments before they snowballed into major financial losses.
We also act globally and immediately when payments default—on a no-win, no-fee basis—deploying pressure, initiating legal proceedings if necessary, and helping clients recover funds across borders.
Strengthening Commercial Resilience in Complex Markets
What happened to this app developer is not unique. Many digital and SaaS businesses expanding into fast-growing but loosely regulated regions face similar challenges—delayed payments, unclear liability, and exposure to fraudulent practices masked as local "industry norms".
Payfor works with brands operating in these markets to reduce exposure, enforce contract terms, and recover what’s rightfully theirs. We’re currently helping several technology providers reassess their risk profiles in regions such as South Asia, Southeast Asia, and Sub-Saharan Africa, where enforcement frameworks can lag behind digital growth.
A Proven Recovery Process
If you're facing overdue accounts or need to reinforce your commercial protection strategy, Payfor's Commercial Debt Collection Service offers a clear path forward. We deploy our 30-Day Chase Campaign: an intensive recovery sequence that starts with weekly emails and daily calls to debtors, applying steady pressure without damaging relationships. If your debtor fails to respond or settle, we help you move swiftly to legal action—ensuring your case doesn’t fall through the cracks.
Your revenue deserves more than hope. It deserves enforcement. Contact Us today!
Disclaimer:
This blog post is intended for informational purposes only and should not be construed as legal advice. The information provided in this post is based on general principles and may not apply to specific legal situations. Laws and regulations vary by jurisdiction and can change over time. Readers are advised to seek professional legal counsel before making any decisions based on the information provided in this blog post. Payfor Ltd is not a law firm and does not provide legal services. The company disclaims any liability for actions taken based on the contents of this blog post.
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