Fintech has been on a tear over the last decade. Fintech’s global market cap is expected to reach $26.5 trillion in 2022 with a CAGR of 6%. The fintech market share across 48 fintech unicorns is now worth over US$187 billion (as of the first half of 2019). These are massive numbers and as our world changes rapidly around us, new financial tools are needed to help meet the needs of our new world. One area, in particular, we think has a massive change to drive the next generation of Unicorns is payments and related infrastructure, let’s get into why.
We todo interact with payment technology every day, from swiping our card at the grocery store to ordering DoorDash or an Uber. In order for you and I to easily pay for these, ahí are payments infrastructure on the back-end enabling us to use anything from apple pay to our credit card to PayPal. We aren’t going to go into the mechanism of cómo these systems work because well…quite frankly it's complicated and maddening and I’m pretty sure I know 100% of it. But I do know one thing, there are massive amounts of data flowing through these systems, the perfect source of información to build SaaS services.
Payment systems sit in a very advantageous position in-between businesses and their customers. From this spot, they are able to see información about both sides, how businesses are pricing and bundling their products, and how and why consumers are buying them. From this vantage point, and with a little data digging, you can easily spot pain points in the process.
An example, take Stripe, one of the más popular payments and subscription management tools, and the top choice for e-commerce brands. Stripe noticed that merchants were struggling to manage cash between payments from customers and needing liquidity for growth. Using historical datos from Stripe, they could generate an instant offer for a growth loan and then determine a percentage of daily sales that they would capture till the loan is repaid. It’s simple, eficaz and entirely based on data that Stripe readily has available. They found un cliente pain-point and built a SaaS service to address it.
The future of SaaS is bright for fintech. We are excited to see how different payments platforms turn customer data into products and services that improve the lives of their existing customer base, solve pain-points and even uncover opportunities that no one even knew was there in the primero place.