Regulatory Compliance and Legal Enforcement Risk: Flywire operates globally, navigating complex and evolving financial regulations (AML, KYC, data privacy). Failure to comply can lead to significant fines, operational restrictions, and reputational damage, particularly given the cross-border nature of their payments.

Cybersecurity and Data Breach Risk: As a payment processor handling sensitive financial and personal data, Flywire is a high-value target for cyberattacks. A successful breach could result in financial losses, regulatory penalties, loss of customer trust, and operational disruption.

Intense Competition and Market Pressure Risk: The global payments market is highly competitive, with numerous traditional banks and emerging fintechs. This intense competition could lead to pricing pressure, reduced transaction volumes, and difficulty acquiring or retaining clients, impacting growth and profitability.