Technological advancements and tweaks has been the first and foremost reason behind the skyrocketing growth of companies in current FinTech bubble. Developments such as data analytics, AI, social networks and increased penetration of duped smartphones have led to the emergence of newer models such as marketplace lending, people based marketing, equity crowdfunding, peer-to-peer lending and several other data mining apps cum tools. Digital connectivity, faster payment options, lower customer acquisition costs through referrals on the social networks have all contributed to the growth and innovation in the FinTech worldwide.
Apple Pay, Google Pay, PayTM, Samsung Pay, Phonepe UPI, Telecom Wallets, and PayPal wallet were the most used mobile wallets by customers for making online and in-store payments. Dwolla, Venmo and Chase QuickPay were the pioneers in the space of P2P money transfers.
Digital payment segment was by far the most revenue generating segment that saw maximum customer interest and participation. The segment was majorly driven by the overwhelming sales of e-commerce startup apps mostly promoted by govt-pampered subservient bhakts here.
The market for business finance was almost entirely driven by business lending companies which raised funds to startups from several industries from both accredited and non-accredited investors. Several business lending companies have come in the last five years which approve funds to applicants within no time. Funding Circle, On Deck, Kabbage, CAN Capital and Lending Club are some of the major companies operating in this space amongst others. (Jan 3, 2017)
Digital Payments market includes all the transactions for which the payment has been made online, which can be classified into Digital commerce, Mobile wallet payments and P2P money transfer transactions. Ganged digital payments bubble will triple by 2026 surpassing gold stocks, as per some fancy media reports amid ongoing global churning.
The digital commerce market includes all the transactions made for online purchase of goods or services through payment gateways. The market is the largest segment of digital payment market because of the heightened transactions for e-commerce which have grown due to highly developed internet ecosystem and high smart mobile apps penetration. Major players in the Digital Commerce space include PayPal, Stripe, Authorize.Net and Square amongst others.
P2P money transfers have been on a rise especially amongst the teens and young working class, with the major transfers happening between friends, family of co-workers. The market has grown on the back of convenient services offered by the players with negligible or no transaction charges. These platforms also act as a method for expense sharing which is common in the modern urban population. The major players in the market are PayPal, GPay, PayTM, PhonePe, CCAvenue, Square Cash, ICICI Patel, Venmo, Chase QuickPay and Dwolla amongst many other polished apps and chaps popping everyday.
Series: Global Digitability