Growth in the digital payments sector is driving the market for global Fintech
Global fintech market value is expected to reach $310 billion in 2022. Source: shutterstock.com
The global fintech market was valued at about $127.66 billion in 2018, and is expected to grow to $309.98 billion at an annual growth rate of 24.8% through 2022.
Growth in the digital payments sector is driving the market for global Fintech. Fintech has made payments for goods and services faster, easier, more convenient, and cost-efficient for customers. Customers can now pay for various goods and services via cryptocurrency, loyalty points, and other digital cash alternatives. The growth in the digital commerce market and proliferation of mobile technology has contributed to the growth of the digital payments sector. For instance, companies such as Square and Stripe provide portable Point-of-Sale (POS) systems which can instantly read and process touchless payments like Apple Pay, along with credit cards, and even some mainstream cryptocurrency wallets. In 2018, PayPal, a fintech payments company, increased its account base by 17% over 2017, reaching 267 million active accounts, with a record 13.8 million added in the fourth quarter alone. As an increasing number of businesses are adopting digital payment systems, the demand for fintech solutions is increasing and driving the growth of the market.
Companies in the global fintech market are increasingly using blockchain technology for better security and operational efficiency. As per the PriceWaterhouseCoopers (PwC) Fintech report, by 2020, 77% of financial organizations plan to integrate blockchain into their operations & 90% of payment companies plan to use blockchain by 2020.
