Upcoming Fintech Trends to Watch Out for in 2020
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Juniper Research states mobile point-of-sale transactions will reach $1.9 trillion by 2024. In 2019 it was $850 billion. We're already witnessing that prediction come to life. Companies of all sizes now have access to reliable financial technology. The numbers are still growing.
Like artificial intelligence, today we're finding fintech on a global scale. These technologies are taking over areas that we least expected. Where can we expect this industry to reach next? Tune in to find out.
E-payments Are Replacing Coin Machines
No more searching for quarters in your couch cushions every time you need to do your laundry. The future is coinless.
Companies like Shinepay.co are introducing mobile payment systems in laundry machine sectors. This new system is accessible for apartment complexes, laundromat facilities, and route operators. The app allows customers to pay for laundry with their smartphone on the coin or card-op machines.
How Does It Work?
Customers can download the app and register with a credit card. Participating laundry machines have a Bluetooth installation and QR code that can be scanned for quick, easy mobile payment. The machine accepts mobile payments by itself, or work in junction with the coin or card-op method.
This new process will also help laundry machine management. E-payments save time and effort by eliminating the need for coins. The system also displays analytics, view transactions, and more. It comes as a great advantage to both business owners and customers.
Fintech Start-ups in South Africa
70% of sales in South Africa are cash, despite its costliness and risks of carrying it, but that is about to change. The payment systems industry is introducing payment platforms in South Africa.
Reports show Africa's fintech companies raised $320 million since January 2015. The ecosystem has surged 60% in the last two years.
Last month, investors poured almost $400m into companies like Interswitch, OPay, and PalmPay. The investments will help companies expand. In sub-Saharan Africa, only a third of adults have bank accounts.
"Growth in the payments is like no other on the continent," said chief executive of Guaranty Trust. Chinese firms are the lead on investment into African fintech. The year 2020 will be significant for our friends in the Motherland.
Branchless Online Financial Institutions
Centuries-old banking institutions have proven resistant to the emergence of digital wallets. Online services benefit millions of people in an efficient and inexpensive way. Not only does it end the need to visit a branch, but it also cuts costs, is safer, and makes no-fee credit cards available with a simple mobile application.
Let's take a look at Brazil, for instance. As the ninth-largest economy, one-third of Brazil's population do not have bank accounts. The people struggle due to high costs or distance. To solve this issue, David Vélez created NuBank. It is one of the fastest-growing fintechs in the world and largest fintech in Latin America.
Digital banking has been a growing market in Latin America, China, and India. This method makes having an account more available to isolated households. The process focuses on quality customer care instead of lines, bureaucracy, and paperwork. No wonder it's a highly popular and lucrative market.
Bottom Line
Innovation used to be the domain of large banks, but the game is changing faster than they can adjust. Financial institutions are now struggling to reclaim their position from fast-growing fintech startups. Populations without banking services and traditional bank users have more efficient means.
Cloud-based mobile point-of-sale transactions are opening up opportunities for small businesses everywhere. Cash transactions will decrease like never before, and we welcome the technological shift.
