Financial technology (Fintech) refers to an array of technological developments within the finance sector. The purpose of these technologies is to improve the delivery of financial services, and they can be provided either by the government or a private entity. Over the last few years, fintech investment has been increasing significantly, with the global value of the spending in such companies reaching about USD 112 billion in 2018.
Some of the notable fintech innovations today include:
- Chatbots and virtual assistants: Players in the financial sector have adopted these technologies to deliver content that helps customers solve their issues. Alexa Skills is an excellent example of a financial technology innovation that develops informative content for users.
- Artificial intelligence: Financial institutions are leveraging AI-powered predictive analytics to provide customers with more personalized solutions.
- Digital banking: It is a recent financial technology in banking that has seen the emergence of digital-only banks with no physical premises.
- Internet of Things: The ever-increasing number of devices connected to the internet has presented an opportunity for financial institutions. For instance, firms can use IoT gadgets to gather insurance attributes and utilize the info to offer personalized insurance packages.
- Peer-to-peer (P2P) transaction technologies: Customers are embracing P2P fintech solutions such as Zelle and Venmo. These techs eliminate intermediaries from the transaction, in tune, reducing costs.
Stats about the Current Situation in Payments Technologies
Business people should stay ahead of the trends in fintech to ensure that they invest when it is right. To help with that, below are some of the essential statistics investors should know about as we go into the future.
- Digital payments: According to Statista, the cumulative value of transactions for global digital payments are forecasted to have a 17 percent CAGR between the years of 2020 & 2024.
- E-payments: According to a 2018 McKinsey study, electronic payments in China increased more than 10X between 2012 and 2017.
Elsewhere in N. America, over 50 percent of transactions were conducted electronically.
- E-wallets: A study by Worldpay Global Payments concluded that e-wallets were the preferred mode for global online shoppers at 36 percent. Credit cards came in second with 23 percent, and debit cards rounded the top three at 12 percent.
- NFC or other contactless technologies: According to Statista, these techs are forecasted to yield over USD 220 billion in transaction value.
A study by Finextra concluded that about half (47 percent) of the total European card transactions utilize contactless techs. In the Netherlands, 51.5 percent of card payments were contactless as of 2018. Switzerland and Germany lag when it comes to embracing shifting to this form of payment.
- Voice-assisted retail: According to PYMNTS, 27 percent of users possessed a voice-activated gadget as of 2018.
- By 2020, 82 percent of retailers in N. America are forecasted to use Apple Pay. In September 2019, about 441 million people used Apple Pay. This figure denotes a 292-million increase in users when compared to the same period the previous year. Approximately 48 percent of iPhone users had enabled Apple Pay.
Notable Companies Driving Fintech Payment Solutions
Fintech solutions and technologies are undoubtedly leading the way in making money transfer easier, quicker, and safer. Today, a variety of fintech payment startups have grown in popularity worldwide and have become the go-to solutions for all kinds of non-cash financial transactions online. Here are a couple of examples of fintech companies at the forefront of payment techs:
Square, from Square Inc., is a point-of-sale service that provides tools to help small and medium business/ online retailers receive payments easily online. Square POS enables sellers to convert their mobile phones or tablets into a point-of-sale device with the installation of a small device known as Square Reader. With this fintech solution, retailers can integrate payments from debit and credit cards, cash, and even gift cards on their phones. They can also apply discounts, send invoices and receipts, and fulfill refunds.
Bolt is a mobile-friendly fintech checkout software that e-commerce stores can incorporate into their system to fasten the checkout process and prevent fraud. Apart from making checkout easier for customers and safer for merchants, it also has an analytics feature where business can track their sales. Create similar software with your own Ukraine-based fintech development team with us.
BitPay provides a way for businesses to accept online payments in the form of bitcoins. Users can accept money from online customers on their e-commerce sites or physically using a tablet or smartphone. The service can also be used by individuals as a digital wallet to manage and use bitcoin.
PayPal is perhaps the most famous and earliest fintech payment method on this list. PayPal is primarily a money transfer platform that is widely used by businesses (small, medium, and large) as well as individuals. The service can be used to complete business transactions, make international money transfers, and pay for products/ services online. The service also has a mobile app that one can install to send or receive money.
Braintree, a brainchild of PayPal, is another fintech solution developed to help businesses receive payments. In this case, Braintree ensures business convert more leads by enabling retailers to process online payments from various sites and applications, including credit/ debit cards, PayPal, Apple Pay, Google Pay, and other digital wallets.
Developing innovative and on-demand payment solutions like these is easy with a software developer who understands and has experience with Fintech solutions. 8allocate has helped a variety of online money transfer services with mobile and web development. Get in touch with us to develop your dedicated software development team or fintech company in Ukraine.
While conventional payment methods such as cash and bank-to-bank transfer are not quite dead yet, there’s no doubt that the innovative fintech payment techs will take over in the coming years. Fintech solutions, such as e-wallets and e-payments that we see today, will drive the future in payment technologies. The growth that these services are experiencing today is because of the advantages they have over older methods, including faster, secure, and more convenient money transfer. To be at the forefront of these payment innovations, consult us today. We’ll be happy to help you build an offshore team of experienced fintech developers in Ukraine.