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HitPay is a leading provider of payment solutions for growing businesses in APAC. Headquartered in Singapore, HitPay is regulated in 6 APAC jurisdictions, powering SMEs with a single platform for online, point-of-sale and B2B payments. They support over 50 payment methods in 150+ currencies, offering a free online store builder, recurring billing, and integrations with e-commerce platforms, serving over 20,000 merchants.
As HitPay expanded rapidly across APAC markets, their existing AML setup revealed critical limitations. Transaction volumes surged along with the number of merchants, and regulatory requirements intensified across multiple jurisdictions, exposing gaps in their compliance infrastructure.
The most immediate risk emerged from inadequate support coverage. Ticket-based assistance and account management outside Singapore business hours created critical gaps.
System inflexibility compounded these challenges. The platform required vendor intervention for every rule modification. This slowed down HitPay's ability to respond dynamically across diverse regulatory environments.
Cost transparency issues further complicated operations. Essential functionality including data downloads and compliance dashboards carried additional fees beyond core subscription costs. "Basic functionality like batch data downloads and summary dashboards came with additional fees that scaled unpredictably with our growth," Paula observed.
Furthermore, as transaction volumes increased, the vendor’s proprietary AI produced unsustainable alert rates without explainable logic, overwhelming analysts and making it impossible to validate compliance decisions. "The proprietary AI operated as a black box. When we investigated flagged transactions, we couldn't find clear reasoning," the team notes. This combination threatened operational capacity while creating regulatory compliance risks across multiple jurisdictions.
After evaluating multiple vendors, HitPay selected Flagright as a solution that could handle both AML compliance and fraud detection across six jurisdictions.
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HitPay now tests rule configurations on live production data without impacting actual alerts, experimenting with different thresholds and parameters until false positives drop to acceptable levels. The compliance team creates and modifies custom rules independently without vendor support or development resources.
The AI monitoring system offers transparency, with each alert including visual details and explanations for the trigger. This allows analysts to justify decisions for regulatory purposes based on the provided reasoning.
A unified dashboard for both transaction monitoring and fraud screening streamlines case management workflows, providing comprehensive visibility into all activities. Rather than switching between multiple systems, analysts can seamlessly move between different alert types, improving efficiency and ensuring comprehensive coverage.
False positives dropped from 99.1% to just 15.3%, freeing analysts to focus on genuine risks instead of irrelevant alerts. With clearer data presentation and transparent alerts, investigation times fell by over 50%, enabling the team to handle cases more efficiently.
The platform also enhanced their ability to manage risks proactively. "We can now proactively manage merchant accounts—such as changing their status or pausing payouts based on alerts," the team notes.
Real-time local support during Singapore business hours, independent rule adjustments, and predictable all-inclusive pricing further streamlined operations, eliminating unexpected costs for reporting and feature access.
HitPay now operates a compliance framework designed for scale across APAC markets. The combination of reduced false positives, enhanced fraud detection capabilities, and proactive merchant management tools enables the team to maintain comprehensive compliance processes while supporting business growth.
The platform's flexibility proved particularly valuable as HitPay continued to grow. Several months after establishing their compliance processes with Flagright, the expanding business brought Li Shili on board as Head of Compliance to scale their operations and establish enhanced compliance frameworks. She self-onboarded to the platform and independently reconfigured the entire compliance system— setting up new custom rules with zero development effort, testing them using Shadow rules on live production data, then deploying them—all within two weeks
With this compliance infrastructure in place, HitPay continues expanding across APAC markets while maintaining compliance standards across all six jurisdictions.
