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Emergent FinTech: The New Payments Landscape

Emergent FinTech: The New Payments Landscape

Summary

Fintech has been a key component of the payments market for a long time, but has become even more prominent in recent years, threatening payments incumbents from a multitude of angles. Not all emergent fintech is necessarily a threat. Fintech start-ups are introducing new products and services that are making payments easier, quicker, and cheaper for banks and other incumbents.

Synopsis

  • Discover the drivers behind the fintech boom, and the dynamics of the accelerators and incubators that allow fintech start-ups to take off.
  • Find out the main areas in which new technology is threatening to disrupt consumer payments.
  • Understand the pros and cons associated with the various strategies that banks can use to boost their involvement with fintech.
Reasons To Buy
  • What technologies are startups leveraging to attempt to disrupt the payments market?
  • In which sectors will fintech have the most impact and cause the most disruption?
  • What strategies should incumbents pursue to respond to fintech-driven changes in the market and take advantage of the new opportunities on offer?
Key Highlights

Global investment in fintech is growing rapidly, boosted by the creation of several accelerator programs in London, New York, and elsewhere. Banks are responding with their own schemes to identify and nurture fintech innovators.

Fintech is affecting several aspects of consumer payments, with peer-to-peer (P2P) payments, mobile payments, biometrics, and blockchain technology all threatening to significantly change the dynamics of the industry.

Banks are using a number of strategies to combat the threat posed by fintech entrants, including acquiring key targets and partnering with companies that will complement their own services.


  • Executive Summary
    • Fintech is a fast-growing concern for payments
    • Key findings
    • Critical success factors
  • Defining the Fintech Landscape
    • "Emergent fintech" will drive further transformation in payments
      • Conditions are highly favorable for emergent fintech
    • Investment in fintech is growing rapidly
      • Accelerator programs are proliferating
      • Banks are responding with their own fintech initiatives
      • Banks' fintech initiatives can speed up and streamline the development path
    • Fintech appeals to the tech-savvy modern consumer
      • Consumer satisfaction is dependent upon fintech innovation
      • Digital innovation leads to lengthier relationships
  • The Key Trends in Payments Fintech
    • PayPal's example shows how far fintech firms can rise in payments
    • P2P providers break down payments to its essential components
      • Social media companies are setting their sights on the P2P market
      • Paym is a P2P service based around mobile banking with UK-wide reach
      • The international P2P market is under pressure from start-ups
    • Mobile wallets are finally getting off the ground
      • The big brands are expected to dominate this space
      • Wearable contactless payments face similar problems to mobile wallets
    • Fintech is increasingly looking to solve the rising fraud problem
      • Industry standards are beginning to incorporate multi-factor and risk-based authentication
      • Biometrics are increasingly being incorporated into new security services
      • Mobile-specific security measures require a multi-factor approach
    • Bitcoin and the blockchain have enormous untapped potential
      • Bitcoin start-ups are offering alternatives to mainstream payments products
      • Blockchain technology may have more impact than bitcoin
  • Strategic Implications of Emergent Fintech
    • Fintech provides both opportunities and threats for the incumbents
      • Banks have a role to play in the evolution of P2P tools
      • The blockchain presents a long-term existential threat to incumbents
    • Strategies for incumbents revolve around acquisition or partnership
      • Non-bank players are leading the way in acquisitions
      • Partnerships offer a more flexible route towards acquiring fintech expertize
  • Appendix
    • Abbreviations and acronyms
    • Definitions
      • Altcoin
      • Blockchain
      • Compound annual growth rate
      • Contactless payment
      • Cryptocurrency
      • Credit card
      • Deferred debit and charge card
      • Digital currency
      • EMV
      • Interchange
      • Merchant service charge
      • Mobile network operator
      • Mobile payments
      • Mobile proximity payments
      • Mobile wallet
      • Near field communication (NFC)
      • P2P payments
      • Point of sale terminal
    • Methodology
      • Verdict Financial's 2013 Financial Services Consumer Insight Survey
      • Secondary research
    • Further reading

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