According to Mckinsey, the overall market capitalisation of the financial sector added $5 trillion, rising from $9.5 trillion in 2016 to $14.5 trillion in 2022.
Traditional banks added value at the lowest rate over the past 5 years. In contrast to this fintech and neobanks are displaying valuations more than 10 times their book value and are starting to capture a greater portion of the total financial market.
Looking specifically at the payment industry, the offline and online worlds have merged for good.
Although we see retail opening up across the globe again, the digital-first economy is the new norm for businesses and consumers. This is opening up opportunities for fintech to continue to create value and provide products and services that help merchants and customers with great security and experiences to complete online payments. We don’t see this trend changing.
The next 5 years will be very interesting and it will come down to the traditional banks considering a change to not continue to lose market share. Change can come in many ways, collaboration with fintech might be the biggest change needed by banks, or could it be something else?
We are excited to be part of this dynamic industry offering merchants the ability to take payments directly off their mobile phones. We continue to look for innovative banks (acquirers) and payment service providers to partner with for this exciting new digital-only solution.