Fintech in the Sphere of Payments: Global Experience, Trends and Perspectives

• Main Authors: Skitsko Volodymyr I., Didukh Ilona V.
• Format: Article
• Language: English
• Published: Research Centre of Industrial Problems of Development of NAS of Ukraine 2020-05-01
• Series: Bìznes Inform
• Subjects: financial technology; payments; fintech companies; money transfers; e-wallet
• Online Access: https://www.business-inform.net/export_pdf/business-inform-2020-5_0-pages-402_408.pdf

Fintech provides opportunities to obtain financial services in new ways, minimizing the need for a client’s presence in the bank’s office, financial institution, etc. The development of the Internet and mobile devices has led to the rapid development of fintech, particularly in the sphere of payments. The article explores the trends and prospects for the development of payments as one of the popular directions of financial technology through the prism of companies that occupy a leading position in this sphere. The main directions and stages of development of such fintech companies, key aspects in their activities are researched. In particular, the publication compares the main stages of development of «Ant Financial» and «Paytm» in terms of indicators of market capitalization, number of users and scope of activity. It is researched how new payment services make life easier for users. The current trends in the development of the payment sphere and their spread among the leading companies in this sphere are analyzed. In particular, studies have shown that only two companies – «Ant Financial and «Paytm» – cover all relevant aspects (services) in the payment sphere, while others – less. This is because such companies (e.g. «Compass», «TransferWise» and «Klarna») have focused on a narrow sphere of activity. At the same time, all companies pay considerable attention to protecting consumers from fraud and various falsifications. «Fintech unicorns» have their electronic wallets, pay a lot of attention to the speed of payments, simplify the process of paying for purchases on the Internet and create alternative networks of retail payment services and money transfer systems. The publication describes the development prospects for the fintech companies. In particular, new ways of authenticing customers, using blockchain technology, etc. are promising and relevant.