The Global FinTech Market is Estimated to Witness Significant Growth Owing to Growing Adoption of Mobile Phones and Digital Payments
The global fintech industry market is estimated to be valued at USD 343.5 Mn in 2024 and exhibit a CAGR of 9.6% over the forecast period 2024-2031. Growth in e-commerce along with rise in smartphone penetration is driving the market forward. Furthermore, growing popularity of peer-to-peer lending and digital wealth management provides lucrative growth opportunities.
Market Dynamics:
The global fintech industry market owes its growth to growing digital payments adoption and rise in cross-border money transfers. Digital payment platforms such as phone pay, G-pay, Paytm, etc. have made payments seamless and more secure for consumers as well as businesses. Growing e-commerce across the world has further propelled the need for transparent and efficient payment options. Furthermore, increasing unbanked population worldwide is driving demand for remittances and digital wallet platforms to transfer money globally. Fintech companies, such as Stripe, PayPal, Capital One, and Citigroup, provide user-friendly interfaces and lower transfer fees which has boosted their adoption for cross-border money transfers. Growing smartphone and internet penetration has augmented the growth momentum of digitization in financial services globally.
Market Drivers, Restraints and Opportunities for the Global Fintech Industry Market:
Market Drivers
Growing Adoption of Mobile Phones and Digital Payments
The adoption of mobile phones and digital payment platforms has been growing rapidly across both developing and developed economies. As of 2022, over 95% of the world's population owns a mobile phone. This widespread availability and usage of mobile devices has facilitated the growth of digital payment platforms like Paytm, Google Pay, and PhonePe in India as well as Venmo, Cash App, and Zelle in the U.S. As more consumers get comfortable making digital payments on their phones, it is driving growth for the fintech industry.
Market Restraints
Cybersecurity Threats and Risk of Data Breaches
As the financial industry moves increasingly online, it faces greater risks from cybercriminals looking to steal sensitive personal and financial data. High-profile data breaches at fintech firms like Experian and Capital One in recent years have eroded customer trust in the security capabilities of such companies. Ongoing concerns around protecting customer data from hackers and ensuring safe digital transactions act as a restraint on the growing adoption of fintech services.
Market Opportunities
Alternative Payment Systems for Cross-Border Transfers
International money transfer traditionally involved high costs and lengthy processing times when using methods like bank wire transfers. Fintech startups are innovating new cross-border payment solutions and remittance platforms that leverage technologies like blockchain to facilitate faster and lower-cost money movement between countries. This represents a major market opportunity.
Link - https://www.coherentmarketinsights.com/market-insight/fintech-industry-market-4424
Key Developments:
In March 2023, MANGOPAY and PayPal deepened their long-term strategic cooperation, providing marketplaces with immediate access to PayPal's international payment capabilities to create one-stop-shop solutions for end-consumers and raise the standard of services offered.
In May 2022, Mastercard announced a cooperation agreement with Synctera, a prominent provider of fintech banking services. Through this partnership, the companies are jointly offering account verification solutions for FinTechs, leveraging Mastercard's open banking platform powered by Synctera.
In March 2022, Envestnet partnered with Productfy, a developer of B2B fintech platforms. This collaboration will allow FinTech creators using Productfy's platform to access Envestnet directly through a single interface.
Key Player:
American Express Company, Square, Stripe, PayPal, Capital One, Citigroup Inc., JPMorgan Chase, Mastercard Inc., Visa Inc., Brex, Revolut, and Pivot Payables
