Discover has released its annual Fintech State of the Union, providing global perspectives from consumers, fintech vendors, and venture capitalists.
The research study commissioned by 451 Research of S&P Global Market Intelligence surveyed global fintechs to identify emerging digital payments trends shaping the fintech ecosystem.
Reliance on Payments Networks is Strong
According to the study, fintechs are dependent on payments networks, with 93% saying the current economic environment has increased their business’s reliance on payments networks.
Fintechs are looking for payments partners who are flexible (44%) and innovative (44%).
Fintechs also say they benefit from payment networks the most through financial investment (42%), access to customers (38%), and technology enablement (38%).
“As a payments network, it’s exciting to see both fintechs and venture capitalists lean into partnerships with networks as a way to provide new and seamless payments experiences for their audiences,” comments Matt Sloan, Head of Business Development at Discover.
“By partnering together, we can work to find solutions and enhance the payments ecosystem.”
Fintechs and Venture Capitalists Poised for Growth
According to key findings from the study, fintechs are preparing for growth compared to previous years, with 34% of respondents anticipating “significant growth” and an additional 43% anticipating “moderate growth” in 2023.
Further, 55% of venture capitalists say the growth outlook for the technology sector over the next five years is very strong and 47% say the same for fintech.
As the industry continues to innovate, fintechs are considering the impact of emerging technologies on their business – 91% of respondents believe real-time payments are relevant and 85% believe open banking is relevant.
Fintechs Focus on Different Payment Technologies
When it comes to payment use cases, the study revealed that fintechs are continuing to find relevance in different technologies that extend to both consumer and B2B audiences.
Payment data security (90%), payment acceptance (89%) and contactless payments (85%) are incredibly important, with a majority of respondents seeing these payment use cases as relevant to their business.
Additionally, fintechs find B2B use cases for automation (87%), digital or virtual cards (86%) and payroll (84%) relevant to their business.
“This is an interesting moment in time for fintechs and this year’s study1 revealed they’re more confident than ever in their growth potential,” continues Jordan McKee, director of payments research & advisory at 451 Research.
“As fintechs embrace emerging technologies and strategically partner with payments networks, the industry will become stronger and create a better, more seamless experience for customers worldwide.”
The post 93% of global fintechs increase reliance on payment networks appeared first on Payments Cards & Mobile.