A change in how we pay
… We have thus seen an increasing amount of solutions offered by fintechs such as for trading or peer-to-peer (P2) payments. This openness for digital solutions has allowed fintechs to pass the initial phase of growth… In 2021 investment in mobile and contactless services won’t just be limited to major players but also for smaller businesses who are expected to facilitate digital payments by consumers… We can also expect more focus on value added services such as mobile loyalty cards integrated into a smooth payment experience.
The rise of the super app
As more of the services we use to lead our lives move over to our phones we anticipate more of the so called “super apps”… We expect that these super apps will have an accelerated growth in 2021 … as users seek to streamline their digital services and use trusted, simplified apps… We therefore expect a merging of shopping, payment and financial services in one wallet app… It can therefore provide the user with an attractive proposition as they know they can access all key services in one place.
More regulation, more choice
In 2021, Payment Service Directive 2 (PSD2) will come into play ending the decades long lock in effects of banks that has dominated the industry and allowing fintechs access to customers’ bank accounts… This mandatory change will enable consumers better access to fintech services that are more convenient and effective for individual needs…
Is buy now, pay later here to stay?
Over the last year we saw a rise in buy now, pay later (BNPL) services as consumers turned to online shopping. Recent research by Finaria found a 168% increase in buy now pay later apps this year… In 2021, we will see whether the shift towards this new way of payment is a short-term trend, or a long term change. BNPL options both instore and online will become increasingly accessible for consumers due to all the investment made by retailers and payment providers…
Europe’s hidden success stories
2021 will be a growth year for European fintech companies… big and really successful companies are already substantially coming from outside of the big hubs of London, Paris and Berlin. What we can expect is greater offerings from outside of these big hubs from less expected places across Europe.
So, as you can see 2021 is set to be an exciting time for fintech. More regulation leading to greater choice, a permanent change in consumer behaviour driving digital services and new hubs of innovation all combine to make fintech a very exciting industry over the next year.