How leading fintech startups in payments and remittances differentiate themselves
26 June 2019
Digital payments have long been considered the first rung of a financial inclusion ladder, so to speak, that would help the underserved step into formal financial services. And with advancements in technology, interoperability, and mobile phone adoption, payments continues to be a popular product category for fintechs. In fact, over 100 payment and remittance fintechs submitted eligible applications to Inclusive Fintech 50.
Though the benefits of payments and remittances services is clear, what is most striking is the performance of some of these fintechs: Although this category accounted for 26 percent of eligible applicants, only 16 percent of winners offer payments or remittances services. Our analysis of data from applicants shows that some of these fintechs struggle to differentiate themselves. For one, many payments providers provided little detail on their target customer, perhaps assuming that most users have similar needs and expectations. Additionally, scores related to ‘innovation’ tended to lag behind other types of fintechs as the payments and remittances products were mostly improvements on common offerings like digital wallets. Though the category might be showing signs of over-saturation, the eight payments & remittances providers that earned a spot on the Inclusive Fintech 50 show that these services still have an important role to play in financial inclusion.