Here’s Why Every Company Is Launching a Fintech Application

08 August 2022
6 min read

Ten years from now, when someone in Gen Z hears the word “money” they won’t be picturing what the middle-aged person of today does. Cash is no longer cash, and the transformation is happening quicker than ever predicted; money, the most powerful tool we have, is finally becoming fully electronic. For more than a decade, visionary companies have been trying to find ways to become the next mediators of money, but recently, everybody seems to want to join the game.

In such a disruptive environment, launching a fintech seems to be the most reasonable way to expand for businesses, and the predictions agree. In the next six years, the fintech market is expected to grow at a CAGR of over 19.8%, and a considerable amount of the growth will be linked to non-financial companies.

Will Every Company Be a Fintech Company?

It’s a bold statement to say that every company will be a fintech company, but when we consider how easy it has become to join the financial services arena, it’s not impossible. For a couple of years, there has been a gradual shift to online payments and peer-to-peer transactions with the rise of smartphones and mobile wallets.

We have long passed the times when the term fintech was a niche in the financial services industry. According to Ernst & Young’s 2019 report, 96% of global consumers are aware of the fintech concept in some ways. Software and eCommerce giants, like Google, Apple, and Amazon, are a big part of this awareness. Let’s explore why.

Mobile Payment Is the Norm of New Generations

We are finally in an age where millennials have become the largest population in many countries, such as the US, and as a result, they have become the largest group of shoppers. Today, every major marketing company is working to reach millennials and the younger generations. But the latest research has shown that there is one essential step to steal millennials’ attention, and that is mobile wallets.

According to a report by FintechNews, millennials are the largest group benefitting from mobile payment. Another survey states that in 2022, 65% of millennials stated that they were mobile wallet users.

So the main motivation for companies getting into the fintech arena seems to be embracing future shoppers, but that is not the only reason. First, it is easier than ever to launch a mobile financial solution application. With today’s technology, even small businesses can launch their own mobile payment applications.

Thanks to advancements in mobile security, digital technologies, and customisable, ready-made platforms, offering your customers a mobile payment option of your own is almost as effortless as launching a website for your business. There are more benefits of owning a mobile payment application or an e-wallet with your company’s branding every day. Of course, nobody is trying to compete with tech giants like Apple Pay, Google Pay, Amazon Pay, or AliPay.

For medium-sized companies, building a mobile payment service is an element of marketing and a strong brand identity. Since this is virgin territory for many brands, it is safe to assume that branded mobile payment systems will become the new marketing tools of the next decade.

Brands Are Integrating Mobile Payment Applications Into Their Loyalty Programs

Having a loyalty program is now the default for all businesses, even the smallest ones. Returning customers are one of the top forces that keep a business running. According to a study by Northwestern University, loyalty programs can increase sales by 20%.

A decade ago, companies used to hand out loyalty cards to their customers, which is not sustainable in today’s market. Mobile loyalty applications replaced cards, which changed everything for the better, both for the brands and customers. In fact, 69% of consumers say that they are more likely to use a loyalty card if it’s on their smartphone.

We have mentioned that with today’s resources, it is exceptionally easy to launch a mobile payment service, and incorporating it into your loyalty program is a no-brainer. At least that’s what the majority of visionaries think. With a mobile wallet that’s filled with perks exclusive to your brand, your customers will definitely return for more.

Credit Card Fees Are a Thing of the Past

Although being paid via credit cards has been very helpful for companies for years, with today’s banking and e-money solutions, there are new and better ways to collect payments, especially for e-commerce businesses. According to NerdWallet, some credit card companies can charge as high as 5%. With your own payment service, you can save a lot in the long run.

A More Secure Payment Method for Customers

Offering an in-app payment method, rather than relying on a credit card or a debit card, is also more convenient on the security front. Although a card is linked to the in-app mobile payment solution, the system usually encrypts the card and user data to offer a more streamlined and secure payment process.

A Fintech Service Comes With Better Customer Data Analysis

Leveraging customer data is one of the biggest topics of the decade. There may be various ways of setting up customer data collection systems, but what’s better than reaching the data of their daily payments? Well, offering a financial service with embedded finance opens the way to collect the most valuable customer data.

Owning a fintech service when met with the capabilities of open banking can lead to new-age, genius marketing campaigns with an extremely personalised touch. This is the only way to go in the near future, with customers demanding personalised content and products more than ever.

A Fintech Service Is the Key to Becoming Future Proof

There’s no doubt that in-product payment systems are the future. They make customers spend easily, and as a result, more. They are more convenient, and they are definitely the payment method of the future. Even today, the mobile payment and in-app payment markets are giant, and it’s essential for businesses to take part in the change as fast as they can. Thankfully, the third-party service providers that help businesses set up fintech products are here to ease the process.

Start a Fintech App Now

Technology democratises everything, and the same rule applies to starting a fintech app. When we think about the time and resources needed to start a financial institution twenty years ago, today’s climate seems incomparably brighter. As a SaaS and PaaS powerhouse that focuses on the future of money, we have a solution that’s developed to fit every need.

Our MFS Platform has countless customisable features, like P2P money transfer, end-to-end payment options, enhanced data collection, and top-notch analytics. The best part is that the mobile financial solutions platform is ready to be customised to the needs of any kind of business, and it works on both digital and physical platforms!

With our MFS platform, you can have any feature you need without spending months on coding. Of course, since it is highly customisable, you can adapt it for different experiences; the possibilities are infinite! Contact us to see what you can achieve with our fintech platforms.

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