The Daily Hodl
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX
No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX
No Result
View All Result
The Daily Hodl
No Result
View All Result

Fintechs (Not Banks) Could Reap Windfall From $800 Billion Opportunity in US Equity Market 

by Daily Hodl Staff
May 26, 2020
in Futuremash
[the_ad id="93550"]

As the global pandemic alters life as we know it, accelerating the work-from-home culture, shifting priorities and creating soaring demand for Zoom conferencing, fintech solutions are quickly encroaching on banks — the Blockbuster Video to their Netflix. The digital shift could trigger an $800 billion opportunity in the US equity market, according to global asset management firm ARK Investment Management.

Digital wallets, which are non-cash payments, allow people to make purchases through  smartphones and other devices that can digitize payment information.

With on-demand offerings, cheaper fees and more efficient processing, fintech companies such as Square, Stripe and Venmo are powering digital wallets and positioning themselves as trusted players that can deliver mobile financial services using crisp, millennial-friendly interfaces, making legacy players look tethered to the last century.

Says Stripe CEO Patrick Collison via Twitter,

“Businesses launched on Stripe since lockdowns began in March have – somewhat incredibly – already generated more than $1 billion in aggregate revenue. We’re very glad to be able to play our part in helping them sell, adapt, and grow.”

Cathie Wood, founder of global asset management firm ARK Investment Management, adds,

“Innovation gains market share at an accelerated rate during tumultuous times: better, faster, cheaper, more productive, more creative!”

According to research conducted by ARK, the major shift in banking and financial services that’s driven by digital wallets will create a boon for fintechs over the next four years.

“In 2024, we expect more than 220 million digital wallet users in the US which, if valued like bank customers at maturity today, could represent an $800 billion opportunity in the US equity market.”

China has been leading the shift to digital wallets. Consumers in the world’s second-largest economy process more than 10 times the number of mobile payments than consumers in the US. Powered by Chinese tech giants WeChat and Alibaba, digital wallets in China are bundled with apps that give users a full slate of features, encompassing everything from restaurant bill splitting to managing balances to hailing taxi cabs.

China’s Digital Payments Revolution
Mobile Payment Transaction Volume
Source: People’s Bank of China, Caixin Data, CEIC via Brookings.edu

China’s digital wallets are a look at how fintechs are able to diversify, moving beyond a finance-only model reserved for banking institutions. Instead, they can appeal directly to consumers and their daily shopping and spending habits by rapidly integrating other e-commerce platforms and offering digital discounts.

WeChat features in one app

  • Quick Pay for paying merchants
  • Sending money to friends and family
  • Tencent digital currencies to power payments in the ecosystem (i.e. gaming)
  • Go dutch for splitting bills
  • Ridesharing app access
  • Group buying coupons
  • Wealth management products
  • Tap to pay utility and phone bills
  • Access to website for clothing and skin care products
  • Access to deals via e-commerce giant JD
  • Integration of Starbucks and other big brands

Wood, who attended Rosenblatt’s 12th Annual Fintech Summit last week, highlighted a scenario where banks morph into utilities, as nimble fintechs swiftly leverage their ability to gain new customers cheaper – all while offering more, reports Forbes.

Regional banks that are investing $1,500 to onboard a new customer by using interest rates as carrot sticks, are competing against fintechs like Square and Venmo that can leverage a slew of rich features and perks to sign up a new user by investing about 20 bucks.

Says Wood,

“Square SQ Cash App and PayPal PYPL’s Venmo are evolving to the point where customers won’t have to use a traditional bank. Once they get their own bank charters they are going to run circles around the banks. That will hollow out banks and they will become more like utilities.”

The road to dominance for fintechs could be even faster than Facebook’s trajectory. As banks lose ground in the payments industry, usage of cash and credit cards is also slipping. According to research by Mordor Intelligence, mobile payments driven by digital wallets are expected to soar at a compound annual growth rate of 26.93% from 2020 to 2025.

Adds Wood,

“Cash app and Venmo are being adopted twice as fast as social networks like Facebook were being adopted back in the day … It’s taking one year to achieve the network effect that took two years in the early days of social media.”

Alipay is currently the world’s largest mobile payment platform with over 1.2 billion users.

[the_ad id="95413"]
Check Latest News Headlines


 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/GaudiLab

Submit a Press Release

Industry Announcements

  • Blockchain Pioneer Acquires International Fashion House Blk DNM
    June 7, 2023
  • WOW EARN Launches Its Crypto Wallet on iOS and Google Play
    June 7, 2023
  • BinaryX and AiGC Labs Developing First AI-Powered Virtual Reality Game on the Metaverse
    June 7, 2023
  • The Importance of Crypto Payments in 2023
    June 7, 2023
  • Proof of Talk 2023 – Two Days To Restore Trust in Web 3.0 and Design the Future of the Industry
    June 7, 2023
  • OKX Partners With Komainu, Enabling 24/7 Secure Trading of Segregated Assets Under Custody for Institutions
    June 6, 2023
  • Mooky.io – $750,000 Raised Within a Matter of Days
    June 5, 2023
Submit a Guest Post
ADVERTISEMENT
Bitcoin
$26,434.08
$26,434.08
1.43%
Ethereum
$1,844.32
$1,844.32
1.15%
Cardano
$0.327226
$0.327226
3.24%
XRP
$0.519752
$0.519752
2.34%
Dogecoin
$0.068197
$0.068197
0.06%

Spotlight

  • Popular Crypto Analyst Issues Major Bitcoin Alert, Says BTC Ripe for a ‘Flush Down’ – Here’s Why
    June 1, 2023
  • Is XRP About To Rally? Crypto Analytics Firm Santiment Says One Metric Is Flashing a Historically Bullish Signal
    June 1, 2023
  • Top Trader Says Ethereum on Cusp of Breakout Against Bitcoin, Predicts One Surging Altcoin Has More Fuel in Tank
    June 1, 2023
  • Brian Armstrong Issues Warning on China, Says US Putting National Security at Risk With Anti-Crypto Climate
    June 1, 2023
Coinfest Asia Banner
DON'T MISS A BEAT
Crypto headlines delivered daily
to your inbox
BTC, ETH, XRP news alert options
By joining The Daily Hodl news list you agree to our
Terms and Conditions and Privacy Policy.
Featured Image: Shutterstock/Billion Photos

Cryptocurrency news and analysis, covering Bitcoin, Ethereum, Ripple, XRP, altcoins and blockchain technology

Categories

Bitcoin • Ethereum • Trading •
Ripple and XRP • Altcoins •
Blockchain • Regulators •
Scams • Crypto101 • HodlX •
Futuremash •
Industry Announcements

ABOUT US | EDITORIAL POLICY | PRIVACY POLICY
TERMS AND CONDITIONS | CONTACT | ADVERTISE

JOIN US ON TELEGRAM

JOIN US ON TWITTER

JOIN US ON FACEBOOK

COPYRIGHT © 2017-2023 THE DAILY HODL

No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
  • EMAIL ALERTS
  • DAILY HODL MIX

© 2023 The Daily Hodl