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How Fintech Startups Are Interrupting the Payments Industry?

15 November 2020

The financial service industry that we have known for years, is gradually changing. Years ago, people used to do all their transactions using gold, silver, cattle, and other physical commodities. Now we have the floating exchange rate instead of the gold standard. The question is, how long will this payment system last?

As we all know, fintech is taking over the payment system with things like virtual currencies, distributed ledgers, and decentralized protocols. The younger generation, or “Generation Z”, as we can call them, are more connected with the technology of the modern world. They like to shop from anywhere around the world just by a tap on their phone. Fintech brings them this opportunity with its frictionless systems that make cross border payment quick and easy. It brings a greater means of transaction and unblocks the opportunity for greater economic activity. 

Fintech startups are always working on new and innovative design solutions to let their customers transact effortlessly. 

Real-time Settlements

The world is moving fast. The younger generation is always going for speed. Like all other sectors, the financial sector also has to move fast to keep up with the competition. People want to spend their money fast with no problem. Recipients want to get the money fast. The real challenge for a fintech startup is to be frictionless, so the money can be sent across the border with no issues, low cost, and in real-time. 

Inoperability with other systems

Fintech organizations are technology-based, the better the technology is, the best it is for their business. But while investing in more cut-edge technologies, companies should also remember to meet customer expectations. Outdated technology can result in higher fees, delay in the transaction and thus, resulting in customer dissatisfaction. 

Companies are searching for newer ways to make the transaction process fast and easy. Some companies use tokens and transact through the token transfer, some are using bitcoins, blockchain, and peer-to-peer networks. The overall goal is to eliminate the roadblock of payment and create greater economic activity.