The global fintech industry has surged to a valuation of US$309.98 billion, with last year witnessing remarkable growth in both interest and capital. The COVID-19 pandemic catalyzed this expansion by compelling businesses to digitally transform, embracing digital payments and automating processes amidst global travel restrictions.
Fintech Insights
1. Increase in Crypto Wallets & Payments
Cryptocurrency adoption for payments soared in 2021, prompting more businesses and consumers to utilize crypto wallets. This trend is expected to continue, fostering the emergence of new cryptocurrency wallet providers in 2022.
2. Embedded Finance and Expansion
Embedded finance, exemplified by integrated payment services like Google Pay and Amazon Pay, is set to broaden its scope in 2022. This approach enables non-financial companies to seamlessly offer financial services, enhancing consumer engagement and market reach.
3. Stablecoins and CBDCs
The rise of stablecoins, pegged to fiat currencies like the USD, and the development of Central Bank Digital Currencies (CBDCs) are poised to streamline cross-border payments. Collaboration between regulatory bodies, central banks, and fintech firms is expected to drive this evolution.
4. Enhanced Open Banking Platforms
UK consumers’ adoption of fintech products is projected to increase, with an average of 3.5 products per individual by mid-2022. Open banking’s popularity continues to grow as consumers gain confidence in managing their finances online.
5. Decentralized Finance (DeFi) and Web3
Decentralized finance (DeFi), leveraging blockchain for peer-to-peer transactions without intermediaries, is anticipated to expand further. The nascent Web3 movement aims to decentralize the internet, potentially revolutionizing financial transactions.
6. Buy Now Pay Later (BNPL) Fintech
The BNPL sector is on a rapid growth trajectory, with expectations to reach $680 billion in global transaction volume by 2025. Particularly popular among Gen Z and millennials, BNPL services continue to reshape consumer spending habits.
7. Continued Fintech Innovation
Every sector, from individual consumers to large corporations, is increasingly reliant on fintech solutions. As technology evolves, the fintech industry will sustain its growth momentum beyond 2022.
About Mena Advisory
Mena Advisory is a UK based consultancy with International Consultancy. We navigate the dynamic landscape of digital payments, providing strategic insights and support for businesses in digital banking and mobile payments.
Our services include:
- Commercial & Technical Due Diligence
- Strategic Planning for Growth
- Digital Transformation Support
- Restructuring and Operational Improvement
To explore how Mena Advisory can assist your fintech business in scaling and innovating amidst industry advancements, contact our team of experts at info@madvisory.qa.