Innovative fintech methods are reshaping the payment landscape, with companies increasingly focusing on customer acquisition and integrating digital wallets, as outlined in the latest 2024 fintech outlook from BTIG.
Investopedia website explains that Financial technology, known as fintech, is about the innovative use of technology to streamline and enhance financial services.
Essentially, fintech is about using specialized software and algorithms on computers and smartphones to assist businesses and consumers in managing their economic activities and daily financial needs more efficiently.
The term 'fintech' itself is a blend of 'financial' and 'technology.'
Emerging Fintech Methods in 2024
In a recent client note, BTIG analyst Andrew Harte emphasized that for payment companies, the volume of consumer payments is only part of their growth story. He pointed out that their additional services attract businesses to their platforms rather than just the essential function of processing payments.
Harte also highlighted Lightspeed Commerce, Shift4 Payments, and Flywire as notable players in the payment sector. These companies are expected to increase their revenues independently of general consumer spending patterns.
Among them, Shift4 Payments is particularly distinguished as BTIG's preferred choice.
According to Harte, three major fintech payment trends will shape 2024. Merchants must adapt to changing consumer payment choices, he says.
Second, he emphasizes company expansion due to globalization. Harte concludes that fintech companies and merchants must improve efficiency to stay competitive.
Also Read: Maximizing Efficiency: Standard Operating Procedures for Business Growth
Methods of Payment to look forward to in 2024
As per BTIG, as people increasingly move away from using cash, credit, and debit cards, the focus is shifting towards digital wallets and direct account transfers. Companies like Shift4 and Flywire manage their payment networks and are poised to benefit from these changing payment preferences.
Shift4, for example, can handle over 100 different payment methods and supports transactions in more than 160 currencies. Flywire also adapts to market needs, with capabilities to integrate real-time payment options based on customer demand.
Banking and fintech address sustainable financial solutions. Corporate Sustainability Reporting compels banks and insurers to justify their operations and environmental impact to the European Commission. Customers can choose banks more carefully.
Neobanks and payment providers produce greener financial goods and services and commit to EDG transparency.
Banking and fintech push digital payment options to make finance more sustainable. Cash and credit cards are less eco-friendly than digital payments. No cards or receipts are needed for digital payments.
Finance becomes more sustainable when fintech and banks lessen their environmental impact. Banks are going carbon neutral and reducing waste.
These trends may help customers buy. Clients become more environmentally sensitive and want socially and ecologically responsible financial organizations.
Fintech Methods' International Reach
After acquiring Finaro, Shift4 expanded into Southeast Asia and Japan, strengthening its acquisition, foreign currency, and banking operations in Europe and the UK. Flywire's worldwide network lets firms transact in over 240 countries using 140 currencies, which is valuable as cross-border travel rises post-COVID-19.
Since 2019, Lightspeed has acquired four foreign companies to broaden its market reach and software offerings for small and medium-sized businesses. This global expansion allows Lightspeed to use its international presence in future strategies.
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