Will FinTech Payment Systems Ever Rule the World?

FinTech is like a portmanteau of the words “finance” and “technology” that is used to describe new technology designed to automate and improve the delivery and use of financial services.

The main aim of FinTech software development is to improve the financial lives of both businesses and consumers by utilizing specially designed software and algorithms on computers and increasingly smartphones or other devices. The offer of more effective mobile payments and banking services by FinTech companies is already threatening to change the landscape of banking as we know it, providing much-needed innovation in banking technology and undercutting the processing fees usually taken by banks for handling payments.

In this article, we will look at some of the key players in the FinTech industry that have already had an impact on banking or who are likely to exert a great influence in the future.

Mobile Payment Systems: Debunked

The historical popularity of credit cards is likely due to the fees that they incur from the issuing and receiving bank, the payment processor and the point-of-sale (POS) system - which are ultimately absorbed by the merchant and the consumer. That is why FinTech is now offering mobile development solutions that reduce the number of links in the payment chain, avoid traditional banks and thus reduce the fees for buyers and sellers.

Most people are probably already familiar with Apple Pay and Google Pay. These apps are used by millions all over the world and are regarded as a boost to mobile banking. Users gave a clear sign: we use it, we want it and we won’t stop demanding even more advanced technological solutions to make our lives (and banking) easier.

Taking the development further, the Chinese mobile app WeChat Pay works like an escrow service for consumers and merchants, which avoids additional processing and POS fees because it is based on proprietary FinTech software. There is also Azimo, specializing in international money transfers to more than 190 countries, who have developed a mobile app that is integrated with Facebook Messenger to connect senders and receivers through their friend list. And this is just to name a few - there are more players who step into FinTech with new payment solutions.

The Anatomy of Integrated Payment Systems

Naturally, with any new technology and entering the unknown, comes security fears, and this is of course no different from mobile payment security. Most people have come to put a lot of trust in using credit cards, and now technology from well-known brands such as Apple Pay and Google Pay too - but what about newer FinTech developments? More and more often, banks are opening their API to third-party developers, which encourages many of them to integrate payment systems into their mobile apps. Unfortunately, this can leave parts of the system vulnerable to security breaches. As a matter of fact, it’s almost impossible to develop a secure mobile app without having great knowledge of secure payment solutions. That’s why it’s so important for developers to work with a team who are experienced in mobile payment security.

FinTech Payment Companies You Should Know

This article has already discussed the rise of FinTech in changing the future of banking through new banking solutions offered by mobile applications and talked about how developers of such apps should enlist the help of experts in financial security in order to keep their products and consumers safe.

It’s high time for us to look at some of the key players in revolutionizing payment solutions in 2019.

A FinTech payment companies, Apple Pay and Google Pay, have already been mentioned - as well as a leader in China, WePay Chat, and an international transfer service harboring a large digital network, Azimo.

There are many more examples:

  • iZettle is a leading mobile payments company that offers portable POS devices to small businesses, which allow any individual or store to take payments from consumers by integrating a card reader with their mobile app. Charging only for the device and a percentage transaction fee without startup or regular costs makes it accessible for many small businesses.
  • Klarna provides payment services to e-commerce stores, eliminating the risk for both buyers and sellers by acting as a middle man that manages the transactions. Payments are made to the merchant immediately and the consumers are billed at a later date, rather than collecting the payment immediately like most other online payment systems.
  • Adyen allows international merchants to accept monetary transfers from anywhere in the World by outsourcing financial transfer services to them. It delivers directly to Visa, Mastercard and countless other payment methods to deliver simple online transfers through mobile devices or otherwise.
  • Last but not least: Revolut made quite a revolution when it comes to FinTech, making the whole banking experience quicker, easier and better for many. While an intuitive and user-friendly mobile app is seen as an advantage of many banks or financial institutions, the actual payment process may cause some hassle, but not here. N26 is another financial service letting you manage your account and a card from your phone only.

Is it worth keeping an eye on the aforementioned solutions? Definitely, but there are more to come since payment systems in the world of FinTech will only be growing stronger. We live in an era of constant growth in requirements and expectations, and solution providers need to keep up with it or they will get left behind the fierce competition.

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