Payments: Star Of The FinTech World
Unlike other growing industries, the payments industry hasn’t experienced significant disruption and innovation. Large banks and credit card networks continue to dominate industry economics.
However, over the past decade, consumer and business expectations and preferences have rapidly evolved. Access applications and data have fundamentally changed. The rise of mobile commerce, particularly in developing nations, and the ubiquity of laptops, smartphones, and other connected devices has generated a surge in the ways consumers and enterprises can access the Internet and purchase goods or services. The relative market share of the traditional point-of-sale terminal in a brick-and-mortar store has been declining, and we expect those declines to accelerate as the market rapidly shifts towards digital payments.
In order to understand the future of payments, we must look at the industry as a whole – both through the lens of technology and of society. In this report, we’ve focused on seven key categories of questions that investors need to consider.
“Mobile devices, high-speed data communication, and online commerce are creating expectations that convenient, secure, real-time payment and banking capabilities should be available whenever and wherever they are needed.”
- Brief Overview of Payments Industry
What is the history of payments? What are the key categories in a payments flow and who are the key players?
- Competition and Stakeholders
Who are the industry stakholders in the payments industry? What are their strengths and challenges and who are the key companies in each industry group?
- Sizing up the $110 trillion payments industry
Can we accurately estimate the overall market potential for payments companies? Which segments of the the payments market are growing faster than overall global GDP growth?
- Understanding unit economics of payments
What happens to every dollar spent by a consumer before it reaches the merchant? How has the payments infrastructure evolved? Why are there so many payments companies today, and how do they serve the needs of companies?
- Changing business models in the payment sector
How are business models changing over time? What is driving some of these changes? Who are the winners and losers?
- Current Technical Trends in payments
What current technical trends are likely to shape the future of payments in the immediate and long term future? What are the underlying secular trends that continue to drive innovation in the industry?
- Private investment trends in payments
What is the state of investments in payments sector. Who are the top private payment companies and how much are they worth? Where are the largest payment companies located? How do investors feel about payment companies?
- M&A and IPO trends among payment startups
What are the latest mergers and acquisitions in the FinTech sector and how do they impact valuations?
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