Digital Horizon VC’s Post

"According to IMF figures, all Latin American fintech sectors have grown exponentially since 2017.,In fact, the report shows that digital payments in the region went from $89 billion in 2017 to $215 billion in 2021, consequently reflected in the number of users." #fintech #digital #payments

💳 By 2030, the fintech market is projected to hit $698.48 billion, up from $110.57 billion in 2020. Startups and established organizations alike are updating their operations and acquiring the necessary technical skills to scale effectively. In our latest article, we explored how fintech companies are leveraging trends like BNPL, cryptocurrencies, and more to increase efficiency and stay competitive in the rapidly changing market. Read more and discover the latest fintech payment trends for 2024: https://lnkd.in/emaEjRq7 #fintechtrends #digitalpayments #paymenttrends #fintech #digitalwallet #bnpl #cbdc #aiinfintech #a2a

With Boost’s upcoming digital bank on the horizon, we dive deeper into its journey so far, and how it became an unstoppable fintech trailblazer that it is today. #fintech #payments #digitalbank #ewallet

By 2030, the fintech market is expected to reach $698.48 billion, up from $110.57 billion in 2020. Both startups and established companies are upgrading their operations and technical skills to scale effectively. In our latest article, we explore how fintech firms are using trends like BNPL and cryptocurrencies to stay competitive. Read more about the latest fintech payment trends for 2024: https://lnkd.in/emaEjRq7

The Japanese fintech sector exhibits a rich diversity, underscored by robust growth in digital payments. This is evident in the ascendancy of e-wallet ecosystems such as d-Barai, PayPay, and LINE Pay. Also growing briskly are fintech segments such as Buy Now, Pay Later (BNPL) services, digital banking, crowdfunding, insurtech, and regulatory technology (regtech). The broad adoption of fintech across different segments of financial services signals a departure from Japan’s traditional reliance on cash transactions. #japan #fintech https://hubs.li/Q02Bm3c90

Despite crushing interest rates and falling valuations, payments remained the most well-funded fintech sub-sector globally in 1H2023. The same was seen in Singapore, which recorded US$119.6 million raised across eight deals. Thunes, a “soonicorn” based in Singapore and London, raised US$60 million in Asia Pacific’s largest round for the period. It extended its Series C till July, raising a total of US$72 million and valuing the seven-year-old company at over US$900 million. That same month, Nium made headlines with its plans to list on the New York Stock Exchange by 2Q2025. Dual-headquartered in Singapore and San Francisco, Nium is also eyeing a secondary listing on the Singapore Exchange (SGX Group), says co-founder and COO Pratik Gandhi to The Edge Singapore. Besides putting their money in Nium, GIC and Temasek are hedging their bets by also investing in fellow payment peer Stripe. In March, the Irish-American company announced that the two heavyweight Singaporean investors had joined its Series I fundraising of more than US$6.5 billion at a lofty US$50 billion valuation. Temasek is also invested in Adyen, reportedly as its single largest shareholder with a stake of 7.72%. Unlike other payment platforms, Adyen boasts that it has not made a single acquisition in its 17 years of existence. “Our technology is spectacular,” says Priyanka Gargav, country manager for Singapore. The payment ecosystem is not linear and some platforms, like Stripe, run on another payment unicorn: PPRO. Founded in 2006 and based in London, PPRO gained unicorn status in early 2021 and counts among its investors Citi Ventures and PayPal. Others see opportunity in consolidating the crowded ecosystem. FOMO Pay was born in 2018 as a payment aggregator, and “has been profitable for years”, says founder Louis Liu, with over 10,000 merchants onboarded. Finally, despite all the jibes made by challenger fintechs, Swift, the global financial messaging service provider, remains the incumbent juggernaut at the heart of the world’s banking system. In 2022, Swift processed more than 11.25 billion messages on its core messaging service, up 6.6% over the year. Some 1.63 billion messages came from Asia Pacific, representing 14.4% of the year’s total. This week’s cover story on The Edge Singapore is a months-long effort by Nicole Lim and I. Read the main story here.

How Fintech Is Disrupting Traditional Banks in 2024! In #sectors like #mobile #banking and #commission-free #trading, #fintech companies have had a profound on financial incumbents. In other areas, the future of banking and fintech is still being #developed. Over the last few #decades, a #generation of #startups has surfed a wave of new technology spanning digital payments, roboadvisors, blockchain, and more, staking out a share in new and existing financial markets. Meanwhile, many incumbent financial service providers have sunk or swum based on their ability to anticipate, react to, or adopt new technology. For the last three years, we at F-Prime Capital have produced our annual State of Fintech report to track the sector’s road into adolescence. 2024 marks a decade since fintech started to attract meaningful venture #investment (that is, more than $10B annually), so in this year’s report, we looked back on fintech’s #impact on the broader #finance #industry. In the race against #incumbents, #startups have had the most disruptive impact in two sectors: embedded payments and commission-free trading models. Broadly speaking, incumbent #banks have adapted well to the past decade’s wave of #fintech #innovation, while #startups have also managed to carve out meaningful market share. Both were able to drive and adapt to #changing #technology in the consumer banking space. Neobanks like Chime, SoFi and Varo found success providing “new front doors” for consumers — between them, the three companies’ apps were downloaded over 8 million times in 2023 alone. Meanwhile, incumbents were able to #quickly adopt neobanks’ more attractive #features like zero overdraft fees and continue to see #substantial user base #growth. #Mobile #app download data suggests incumbents and disruptors are both winning the race to be consumers’ primary financial relationship. https://lnkd.in/gJ-G5BnE

Mexico's #digitaleconomy faces challenges due to low credit card penetration and a young population, according to fintech executives who spoke at the Ebanx Payments Conference, hence, traditional financial institutions and #fintech disruptors are targeting the country's thriving payment market, which is largely untouched by digitalization. Banks and fintech companies aim to incentivize #digitalpayment adoption, with around 650 financial technology startups hosting the country. Find out more via https://lnkd.in/eNKtCSSz

Did you build your fintech on Card interchange? I told you not to... "For countless fintech providers, the main source of revenue comes from interchange fees. These are, essentially, the commissions paid to card issuers, payment networks, and banks whenever a consumer buys something." "There are two things you need to know here: First, although interchange fees vary depending on the type of card, such as whether it’s a debit or credit card, and the jurisdiction where the payment occurred, they nonetheless are capped to a fixed percentage of the transaction price." "The other thing? Interest rates, by their very definition, aren’t. They’re set by central banks, with the percentage rate influenced primarily by external economic conditions." "When times are tough — like a recession or a once-in-a-lifetime pandemic — they go down to stimulate spending and bolster consumer confidence. When inflation spikes, so too do the interest rates as central banks try to dampen economic activity (and thus, demand)." "By itself, this presents a serious dilemma for fintechs wholly or primarily reliant on interchange fees. While their revenue potential is capped as a fixed percentage of their customers’ purchasing activity, their borrowing costs can spiral dangerously out of control." "This issue is compounded further by the fact that, in many cases, these fintechs aren’t keeping the interchange fees for themselves. As we’ve seen over the past decade, one of the most valuable barometers of a startup’s future prospects is its customer acquisition rate, and the easiest way to juice this metric is to offer generous rebates or interest rates." "And so, to keep the lights on, they’re burning through their runway or looking for funding through equity or debt deals. But runway doesn’t last forever, and as the broader macroeconomic situation worsens, additional funding has become harder to obtain, and likely is smaller or given under less advantageous conditions." Unless you have a lot of other revenue options, rising interest rates and limited VC funding will see you out sooner rather than later. Great piece by Michael Sindicich for TechCrunch #payments Mastercard Visa Revolut Cape Archa Weel (Previously DiviPay) Parker Brex Ramp 

🌐 𝐓𝐡𝐞 𝐄𝐯𝐨𝐥𝐮𝐭𝐢𝐨𝐧 𝐨𝐟 𝐏𝐚𝐲𝐦𝐞𝐧𝐭𝐬: An Abstruse from Takis Georgakopoulos, Global Head, J.P. Morgan Payments 1. Diverging Paths for Consumers and Corporations: Consumer Experience: Payments have evolved seamlessly, moving from cash to digital wallets, integrated into daily devices. Corporate Landscape: Corporations still rely on old systems, with funds managed through spreadsheets and outdated payment methods. 2. Paradigm Shift in Corporate Payments: Direct-to-Consumer (D2C) Models: Emergence of D2C models, global instant payment systems, and real-time APIs are transforming how traditional corporations operate. Digital Transformation Challenges: Digitization demands time, vision, investment, and strategic partnerships with banking and ERP providers. 🚀 𝑬𝒗𝒐𝒍𝒖𝒕𝒊𝒐𝒏 𝒐𝒇 𝑴𝒂𝒓𝒌𝒆𝒕𝒑𝒍𝒂𝒄𝒆𝒔: 1. Growth and Evolution of Online Marketplaces: Adaptation in Survival: Corporations adapt through online marketplaces, initially for direct consumer sales, now expanding into innovative B2B marketplaces. Connected Car as a Platform: The connected car becomes a hub for transactions, enabling users to buy various services, expanding into contextual commerce opportunities. 2. Challenges and Opportunities in Marketplaces: Payment Innovations: Payments extend into social media, virtual reality, and biometrics, challenging traditional transaction methods. Complexity and Solutions: Challenges arise in processing lower-value transactions across regions, currencies, and regulations. Fintech solutions and expert partnerships are crucial for success. 💡 𝑳𝒆𝒗𝒆𝒓𝒂𝒈𝒊𝒏𝒈 𝑷𝒂𝒚𝒎𝒆𝒏𝒕𝒔 𝒇𝒐𝒓 𝑹𝒆𝒗𝒆𝒏𝒖𝒆 𝑺𝒕𝒓𝒆𝒂𝒎𝒔: 1. Data-Driven Ecosystems and Invisible Payments: Seamless User Experiences: Corporations utilize data to embed payments, enhancing user experiences invisibly, fostering loyalty, and deepening relationships. Expert Treasury Management: Expertise in global cash management is pivotal in managing the complexities associated with payment transactions on the back-end. Join the Conversation| Share your insights! 🧿 Also read the insightful read authored by Jamie Dimon, Jeremy Balkin & Neha Wattas of J.P. Morgan 🧠🧠 #PaymentInnovation #DigitalPayments #Cashless #MobilePayments #FinancialTechnology #Crypto #Blockchain #PaymentSecurity #Baas #EmergingTech #PaymentSolutions #DigitalTransformation #FinTech #EmbeddedFinance 💳🌍   𝐂𝐢𝐭𝐚𝐭𝐢𝐨𝐧𝐬: 🔎 [1] Forbes - https://lnkd.in/dtCyvdTA [2] J.P. Morgan - https://lnkd.in/drunMHbn [3] PYMNTS - https://lnkd.in/dbzJWfSR [5] Bloomberg - https://lnkd.in/dkBxymhC