Fintech is transforming financial products and services at a rapid rate globally. In Europe, regulation aimed at encouraging competition has increased the number and reach of fintechs. P2P platforms are becoming more popular and are moving into other payment channels, while digital banks are increasing the banked population and reducing the financially underserved. The coronavirus has accelerated fintech adoption, as it enables less friction and contact between merchants and customers.
This report comes in PPT.
With a focus on increased competition in financial services by introducing open banking, the full implementation of the Revised Payment Services Directive (PSD2) in September 2019 set the stage for the European fintech scene to flourish.
In an increasingly digital age, there are growing consumer expectations in terms of the digital customer experience and innovative solutions. This has driven the trend away from cash payments while fuelling contactless technology in the region.
As a result of PSD2 and growing consumer interest in, and awareness of innovative products and services, digital banks have benefited, in particular. Through a compelling mobile-focused approach to managing finances, Germany’s N26 has surged to become Europe’s most valuable fintech start-up.
As with many fintechs, P2P platforms have quickly expanded their offering to other payment channels, directly challenging the traditional card and electronic payment landscape. Increasing technology capabilities and lower regulatory requirements have created a number of additional opportunities for these platforms.
P2P moving to P2B
Swish and FTS are just two examples of P2P platforms moving to P2B payments. The simplicity and convenience of the platforms and broad consumer adoption make the move logical but presents a challenge to the traditional framework.
COVID-19 is going to change consumer behaviour well beyond our forecast period. Consumers are seeking less friction at the checkout in stores and need online payment tools. Fintech is providing the solutions.
This is the aggregation of ATM, charge, credit, debit, e-purse and retail cards. Note that smart cards are not included in financial cards.
See All of Our DefinitionsIf you purchase a report that is updated in the next 60 days, we will send you the new edition and data extraction Free!