Traditional banks are rapidly obsolescing as a slew of digital payment apps and online transaction platforms are foraying in the sector. Indeed, fintech startups are continuously disrupting the industry with new technologies such as digital currencies and distributed ledgers. Now, industry insiders predict that the payments sector will grow more than any other, come 2021.
According to a study by FinTech Connect which surveyed around 200 fintech professionals at its virtual event, 61% said that they foresee the payment sub-sector to lead the fintech industry in 2021 followed by 49% citing digital ID and RegTech and 39% said lending. Circa 37% and 20% selected blockchain and cryptocurrency respectively to be the fastest-growing sectors. Only a mere 8% said remittance and 2%, trading.
In terms of the biggest changes the industry has experienced, 31% admitted that the ongoing pandemic will have a long-lasting impact on the fintech industry, while 28% said the adoption of open banking superseded others and 21% chose Brexit.
Admittedly, the survey results concluded the adoption of technology to be the game-changer. 42% also said that looking ahead, ‘banking and fintech would become invisible as non-financial businesses incorporate financial services.’
Commenting on how the Coronavirus-induced lockdown has changed the way financial businesses operated, FinTech Connect’s director Laurence Coldicott said that “2020 has been both a tumultuous and a landmark year for the industry.
“The pandemic, Brexit and Open Banking will remain key catalysts for change in 2021 but, born from crisis, fintech is well-poised to navigate these macroeconomic and will continue to thrive, with payments, lending and digital ID and RegTech at the front of the pack,” Coldicott added.
Reiterating the above industry trend, according to The Business Research Company the payment sector which was worth more than $46,701 m of the total fintech market in 2019, is expected to grow at a CAGR of 10.2%. Indeed, looking at how getting and remitting money is now at the tap of a finger, it’s easy to say payment apps are here to stay.