Survey Finds Fintechs’ Reliance on Payment Networks is Increasing
June 14, 2023
Once a year, Discover releases its research study Fintech State of the Union to shed some light into the perspective of consumers, Fintech vendors and venture capitalists.
Discover surveyed Fintechs all over the globe to find key emerging digital payment trends shaping the Fintech scene.
According to the study, the level of reliance on payment networks is high across the board, with 93% of correspondents agreeing that the current economic landscape has pushed them into relying more strongly on payment networks.
Some of the key features Fintechs are looking for are flexibility (44%), and innovation (44%).
Fintechs benefit from payment networks the most through financial investment (42%), access to customers (38%), and technology enablement (38%).
Matt Sloan, Head of Business Development at Discover, said he finds it “very exciting” to see fintechs and venture capitalists lean further into partnerships with payment networks to provide new and seamless payment experiences for their customers.
By partnering together, we can work to find solutions and enhance the payments ecosystem.
According to the study, unlike previous years, fintechs are preparing for growth, as 34% of surveyed individuals are expecting “significant growth” and 43% anticipate moderate growth in what’s left of 2023.
55% of venture capitalists agree that technology is set to grow over the next five years and 47% believe the same for fintechs.
Emerging technologies are a key factor in payments.
The impact of emerging technologies are also a factor that fintechs are considering: 91% of surveyed individuals believe real-time payments are relevant and 85% said the same about open banking.
The study also found fintechs continue to find use in diverse technologies that “extend both to consumer and B2B audiences”.
Some of the most important technologies according to the survey, are payment data security at 90%, payment acceptance at 89% and contactless payments at 85%.
According to Jordan McKee, director of payments research & advisory at 451 Research, the company that commissioned the study, this is an “interesting moment in time for fintechs”
As fintechs embrace emerging technologies and strategically partner with payments networks, the industry will become stronger and create a better, more seamless experience for customers worldwide.
As previously discussed in this blog, partnerships are the future of payments. It is exciting to think payments will become more and more secure and swift as technology progresses.
Want to learn more? Check out Payments Cards and Mobile’s full write-up here.
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