Top FinTech Companies that are redefining the Payment Domain

The financial community of the world has traversed into an era of electronic transactions. It is estimated that only about 8% of the world’s currencies exist in physical form, the rest is stored as digits inside computer memories. Fintech is the “fusion of finance and technology”. It is a relatively new branch of business sciences that focuses on the implementation of technology to improve efficiency, security, and consumer satisfaction in various financial service establishments. 

Since the advent of online banking in 1997, a plethora of startups have emerged with various purposes in the field of FinTech. These services include digital banking, e-commerce payments, cryptocurrency trading, stock market investments, and financial loans. The payment sector, in particular, has seen a steep increase in popularity over the past two decades. Research done by the International Journal of eBusiness Research in 2007 found that the main motive for customers to adopt the use of online payments was to meet payment deadlines and were more likely to do so on platforms with high levels of security.

Another significant transition was seen in the early 2010s when mobile payment apps emerged. A 2015 study found that user-friendliness and an already built trust in online payment systems influenced consumers to adopt mobile payment. It is imperative that for an eCommerce company to be successful, it must be safe, reliable, accessible, and quick. Keeping these qualities in mind, here are our picks of the top fintech companies that are redefining the payment domain-

 PayPal:

Probably the most widely known online payment platform, PayPal revolutionized the way we pay for online shopping and provided a channel to seamlessly connect consumers and markets around the world. It is widely used by many large companies, most notably the commerce giant E-bay. It provides credit for online events, with a notable interest-free offering. In recent developments, it has also started to offer cryptocurrency services as well as a “Buy now, pay in 4” scheme, where customers can pay later in 4 interest-free payments every two weeks.

PayPal has been at the forefront of fintech developments. Because of its firm establishment in over 200 markets and millions of companies worldwide, it is widely accepted as the ideal payment platform for international transactions, cutting down on the hassle of inter-bank money transfers. It is also the payment service of choice for freelance platforms like Upwork and Fiverr, connecting clients and sellers for a variety of services. 

Whom it’s ideal for:  common consumers, freelancers, service providers, E-bay sellers.

Stripe:

As one of the fastest-growing fintech platforms, Stripe is always dedicated to providing top services to all customers. Amidst the coronavirus lockdowns, its valuation has rapidly increased from 36 to 95 billion USD in the past financial year. Stripe offers services for marketplaces, subscription-based payments, and crowdfunding. Most notably, it provides cloud-based software solutions for companies to program their payment methods, giving it the flexibility that sets it apart from other FinTech platforms. This, along with the introduction of hundreds of new features per year and less than 0.01% downtime, has established it as a favorite among small businesses and commerce giants alike. Stripe receives over 250 million API requests per day and has been used for transactions by over 90% of adult consumers in the US.

Whom it’s ideal for: companies looking to design and implement their payment modalities using special programs.

TransferWise:

Though primarily a currency exchange platform, TransferWise is an ideal solution for businesses offering and purchasing large orders from overseas retailers. This is because of its dedication to providing seamless, hassle-free transactions with a user-friendly interface. The exchanges are offered at competitive, mid-market rates with no hidden fees. TransferWise services are available in 59 countries and each transfer is processed almost instantaneously. Clients are given the option of locking an exact exchange rate for 24-48 hours, providing consumer protection against the volatile currency exchange market and ensuring the receiver gets the exact payment agreed upon.

Whom it’s ideal for: businesses sending or receiving large payments abroad.

Headnote:

Headnote is the FinTech service of choice for the legal industry. It integrates the specific needs of attorneys into payment receipts, allowing firms to monitor AR activity and payment collection from a secure, easy-to-use dashboard. It also provides Net Promoter Score (NPS) tracking, through which attorneys can benchmark their client’s satisfaction and identify the services to improve. Payments are processed in an average of four days, which is 70% faster than the industry average.

Whom it’s ideal for: lawyers and law firms receiving payments from clients.

Flywire:

Among Global Payment Networks, Flywire provides some of the most accessible and affordable options for service providers. Aimed primarily towards the education and healthcare industries, it operates in over 240 regions around the globe and offers 24/7 multilingual customer service, making it the ideal platform for both local and international clients. Organizations can invoice their clients in any desired currency, with the exchange from local currency being automated by the platform itself. This leads to quick, hassle-free, and cheaper payments directly from client to consultant. With the advent of online schooling and doctors’ consultations in the past year, it has become the industry-leading option for secure and verifiable payments.

Whom it’s ideal for: schools and hospitals providing services with minimal charges.

Venmo:

Venmo is a service provided by PayPal for small-scale, instantaneous transactions. Users of this service can connect with friends and family, allowing them to make shared transactions. Utility bills, groceries, and recreational spending can be split between people to ensure fair payment by all. Venmo is also the platform of choice when sending money as a gift directly to someone you know.

Whom it’s ideal for: small shop owners, individuals sending money to friends and family.

It is fair to say that FinTech is one of the most important and rapidly developing economic sectors in our globalized world. Moreover, amid a global pandemic, we have begun to explore and adapt to new norms in our day-to-day lives. One of these is limiting the use of physical currencies. Consumers, business owners, and service providers alike can benefit greatly from the plenty of online, digital, and crypto payment platforms available today. It is imperative to understand these platforms and look forward to a future free of the hassles that come with cash, one that is run by FinTech. Also, we have observed that FinTech Ideas has created an aura that is attracting investors around the globe. This means there is a lot more to come with novel FinTech Ideas backed heavily by tech giants, investors, challenger banks, and financial institutes.