Fintech, or Financial Technology, refers to a class of businesses that provide technological solutions for financial applications. Fintech is a broad brush, under which a wide variety of business models are painted, but many share the safe and secure facilitation, management, or financing of money and assets. Technological advancements, the more widespread adoption of blockchain and cryptocurrency, and changes to international financial regulations make now one of the best times to consider investing in fintech organizations. The following are three of the more promising names in the sphere at the moment:
PayPal is certainly not a new name, having been a successful business since its launch as Confinity in 1998. A storied history including Elon Musk, incorporation by eBay, and eventual spin-off into a stand-alone publicly-traded company. Today, PayPal’s prospects are grand, as it continues moves to dominate peer-to-peer payment solutions and makes steps to include cryptocurrency as a possible payment solution. Its stock price reflects this fact, demonstrating a more-than-60% jump between 2019 and 2020 with many promising developments yet to be enacted by the company.
TruFin is a fast-growing UK fintech organization, operating four distinct companies that encompass different aspects of the sphere. These companies include Oxygen Finance – a short-term lender that provides popular early-payment systems to both private companies and public organizations like local councils – and PlayStack Limited – a publishing solutions company providing financing options in the increasingly lucrative video game industry. TruFin, while still showing losses as a business, is recording record revenues, making it an interesting UK-based choice for investment.
Another household name breaking new ground, Visa is expanding its already-vast territory as a global payment solutions organization and spreading its wings into the crypto sphere, as well as guiding new avenues for digital commerce – in particular within the automotive industry, as cars move away from fossil fuels into subscription-based electricity services.
Ultimately, fintech as a field is experiencing rapid growth. The infrastructure that enables fintech to thrive was non-existent at the turn of the 21st century, but with technological advancement has come a new world of financial possibilities – and the legal minefields that accompany them. Fintech law firms are on-hand to help companies and individuals navigate adoption of new fintech technologies. Speaking of which, innovation is still ongoing even ad growing companies adopt new forms of payment and transfer. AI is already at the heart of start-up fintech business models, while refinements to blockchain tech promise a truly safe, decentralized architecture to protect assets from currency fluctuation.