Fintech & Ecommerce

How the integration and evolution of online payments is bolstering fintech

The global online payment sector is set to grow from $83.27 billion in 2021 to just under $100 billion by the end of this year, increasing at an impressive rate of 15.5% each year. This shows the sector is going from strength to strength as new solutions, ideas, and innovations are being developed



This is helping the fintech industry grow as well, with recent estimates from Tipalti placing its value at $26 trillion by the end of this year. So how is payment industry growth helping bolster fintech?


The online trading sector has boomed in recent years, and much of it can be put down to increased payment options and diversification. With more options to make deposits and payments, traders find it much easier to access trading of different kinds while being comfortable in doing so.

For example, trading platforms can offer payments in fiat and crypto, as well as through third-party payment gateways, mobile and eWallets, debit and credit cards, and old-fashioned direct transfers. This has led to increased interest in trading, including that of equities, commodities, forex, and even CFD trading.

In terms of the latter, where assets are not outright purchased, there is no need for big deposits. For example, if a trader is interested in a Dow Jones CFD, they do not purchase any asset to it outright; instead, they speculate on the increase in value of the indices over a certain time. If they are correct, they receive money; if not, they pay the platform. As more different types of trading become apparent and popular, payment systems must adapt to facilitate it simply and straightforwardly.


One of the leading sectors of interest in the payments sector is that of eCommerce. Worth some $4.9 trillion at the end of 2021 and is forecast to increase by the end of this year. It relies almost entirely on electronic payments.

While other payment methods are utilized, including buy now, pay later, and payment on delivery,  electronic payments reign supreme. Regarding the most popular payment types, PayPal is one of the most familiar, along with Amazon Pay, Google Pay, Apple Pay, and Stripe.

Credit and debit cards are also very popular, particularly among the older generation. But merchants also need to consider the growth of alternative payments such as cryptocurrency and stablecoins, as well as central bank currencies. They are growing in terms of adoption, and it is savvy to offer at least one alternative via your site. eCommerce is diversifying further onto various channels, such as social media platforms like Instagram.

This also requires a different approach to payments in the future. There is also interest in new payment methods for in-person payments, such as contactless and proximity payments, as well as those via intelligent devices like home assistants and smartwatches.


Last but not least, we have to talk about banking. And when we do, we do not mean conventional banking such as high street or institutional banks. Over the last few years, several reputable online banks have appeared, as well as other financial companies that can store and transfer money for customers as well as facilitate payments.

For example, Wise allows storage of funds, instant transfers, and currency conversion, and it issues its own debit card as well as a virtual card. This has completely changed the way online payments function, taking a big slice of the market away from conventional banks, which have been slow to catch up.

These kinds of providers work almost exclusively through apps and do not offer in-person or sometimes even telephone services. As a result, the cost of transfers can be much lower and much quicker, however, interest rates tend to be non-existent.

It’s fair to say apps and platforms are radically changing our approach to online payments, banking, and transactions.

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