Fintech Industry Trends

As 2024 begins to unravel, a fierce battle is entering its hottest phase. The race around the evolution of #payments rails is on and its outcome will redefine how the industry will look like in the years to come. Let’s take a look. The unbundling of financial services has brought about a huge surge in terms of available payment methods (mostly on the B2C side) by means of novel, innovative offerings from FinTechs such as Venmo, Klarna or PayPal. However, the vast majority of these new offerings were built based on existing infrastructure by mostly focusing on the front-end and by optimizing legacy processes. The resulting #innovation was therefore an outcome of a clever decoupling of product and service offerings from outdated account rails and #banking infrastructure rather than the offspring of a full-blown end-to-end disruption. At the same time a new breed of payment providers – the likes of Square, Adyen and Stripe – have found success by helping merchants navigate the complex world of payments by means of state-of-the-art, API-first, technology offerings. With the huge digital shift accelerated by the pandemic, the focus on #ecommerce and merchant relationships has further strengthened the position of these players in a business where scale, efficiency and #technology increasingly define what success looks like. On top, several other developments are adding even more complexity to an already intricate mix: — Open banking is re-defining the entire game by not only connecting merchants with consumers in a direct way, but also by allowing the initiation of payments directly from bank accounts — Real-time A2A schemes (A2A and OB payments are not the same: whereas OB Payments are A2A payments, A2A payments are not necessarily OB payments) are proliferating across the globe with many showcasing considerable success (i.e. iDEAL in the Netherlands, BLIK in Poland, Pix in Brazil) — Super Apps are already dominant in Asia, whereas the race for a western SuperApp is wide open — BigTechs like Apple have been gradually but steadily building a closed-loop financial services ecosystem around their wallet and payment capabilities — Crypto has not revolutionized payments, but it will not go away — CBDCs have seen a dramatical rise over the past years with over 90% of central banks globally working on developing one The next wave of payment infrastructure is being redefined right now, and it will be very different and much more complex from what it used to be. Two main evolutionary developments stand out: 1) For the first time in years, new payments infrastructure is actually being built 2) The transition to a next-gen set-up will be a rather gradual one with new and old capabilities coexisting in a multi-rail mix and with incumbent and challenger players fighting for a redefined role in the new value chain. Opinions: my own, Graphic sources: Credit Suisse, Paiementor, GSA, The Paypers, TCS, Bank of Canada, wso2

🧠 6 trends in Payments that will define the next five years👇: I read quite a few reports on Payments trends lately, but this one from McKinsey & Company is probably the best (and most reasonable) I saw in a while. Condensed version: 1️⃣ The decline of cash will continue unevenly Developing markets with low card usage, such as 🇮🇳India, 🇲🇾Malaysia, and 🇮🇩Indonesia will continue to see rapid cash displacement with instant payments. In card-dominated markets such as the 🇺🇸US, and other economies with a strong cultural preference for cash, such as 🇩🇪Germany and 🇯🇵Japan, cash usage will continue to decline more gradually. 2️⃣ Instant payments will continue to displace other payment methods Real-time payments rails have now been established in almost every major market. In Brazil and India, regulatory mandates driving interoperability, coupled with competitive merchant propositions and compelling consumer offerings, are helping instant payments gain share. McKinsey expects similar regulatory interventions in the 🇪🇺EU to boost adoption of real-time payments. As a result, they expect the number of instant-payment transactions in the EU to grow from around 10x: from 3B today to almost 30B by 2028 (average annual growth rate of 50% 🚀). 3️⃣ Growing adoption of Digital Public Infrastructures (DPIs) will catalyse digital payments Critical prerequisites for a DPI are a digital ID system, common standards for APIs, interoperability among financial services providers, and the inclusion of nontraditional data sources. ⛓️💥 While McKinsey expect to see a rollout of DPI initiatives in emerging markets, developed economies without such initiatives may be constrained in their ability to combat fraud or support the digitization of services. 4️⃣ Vertical-focused intermediaries will gain market share On one side, commerce is aggregating onto platforms such as Shopify, Square, Amazon, eBay, and Etsy, which now process ±30% of global consumer purchases. On the other, Vertical-specific Independent Software Vendors (ISVs), like Toast, are expected to extend down the value chain into payment facilitation too. 5️⃣ Transaction banking will mimic consumer experiences Transaction banking has become a differentiator for leading FIs: McKisney expects commercial customers of transaction banking services to demand and receive intuitive interfaces like those they encounter in their personal lives. 6️⃣ CBDCs will set the baseline for digital currencies Over 90% of central banks are pursuing or considering central bank digital currency (CBDC) projects, and more than 30 have already rolled out pilots. However, the uptake so far is limited. CBDCs is seen as an enforced alternative to large but opaque stablecoins, with minimum base level of functionality, cost, and services, and better unit economics. This may ensure an unglamorous, but long-term future for CBDCs. *** Capitalising on these trends can help you capture the next $1 trillion in growth.

In 2021, I became the first woman to head a unicorn in Israel, AKA Startup Nation. In many parts of the world, women are excluded from even the most basic financial services, so leading a fintech company is far from their reality. United Nations data estimates that 3.8 billion women live in the world, 50% of which are adults. According to the World Bank’s Global Findex Database, 1.4 billion of those 1.9 billion adult women, are unbanked. That’s 73.65%. Visit that statistic again. It represents a disturbing gender gap in financial access, with women being far less likely than men to have bank accounts or access formal financial services. This financial exclusion has personal impact. It diminishes women’s economic empowerment by restricting access to education and limiting their potential for personal growth and independence. It makes women more financially dependent, and therefore, more vulnerable. There's economic impact, too. Research by McKinsey highlights the economic loss due to financial exclusion of women, noting that closing the gender gap in labor force participation could add trillions to global GDP. Financial inclusion isn’t just a matter of equality – ensuring the same opportunities for all. It’s a matter of equity - ensuring women have the tools and access they need to fully participate in the global economy. That’s where technology enters the picture to level the field. The rise of mobile banking is a great example of innovation enhancing financial inclusion. According to a report by the International Finance Corporation, mobile money accounts are more popular among women in regions like Sub-Saharan Africa, where access to traditional banking is limited. Various fintechs provide financial literacy resources, helping women understand financial products, budgeting, and saving strategies. Other solutions include AI-driven platforms that offer personalized recommendations and advice, empowering women to make informed financial decisions. Aside from personal apps and solutions, fintechs can facilitate community-based lending and saving initiatives, allowing women to support each other through group savings or microfinance schemes, fostering a sense of solidarity and shared purpose. This International Women’s Day’s theme is "accelerate action". In my mind, nothing accelerates action like innovation. As we mark International Women's Day, let’s advocate and innovate to enhance financial inclusion for women worldwide. #IWD2025 #financialInclusion Papaya Global

Goldman Sachs - "Why Digital Asset Adoption Is Accelerating" The Institutions Have Arrived: 5 Signs Digital Assets Are Going Mainstream The narrative has shifted—from “if institutions will adopt digital assets” to “how fast they can scale.” Goldman Sachs’ 2025 update is a must-read. Here are five takeaways shaping the digital finance revolution: 1. $220B Stablecoin Market and Counting - Stablecoins—once dismissed as crypto's plumbing—are now powering real-world use cases from remittances to cross-border payments. - Today, their supply stands at $220B, equivalent to 1% of the US M2 money supply, and growing fast. Stripe’s acquisition of Bridge highlights this new payments battleground. 2. Tokenisation: From Talk to $18.9T Reality - Tokenized real-world assets (RWAs) are projected to reach $18.9 trillion by 2033 (BCG/Ripple). - Think bonds, real estate, and money markets moving on-chain—bringing real-time settlement, fewer intermediaries, and programmable liquidity. 3. M&A Explodes 15x in Five Years - Digital asset M&A hit $15.8B in 2024, up from just $1B in 2019. - With Coinbase acquiring Deribit and Robinhood buying Bitstamp by Robinhood, it’s clear: TradFi and crypto are converging—and it’s a “buy, not build” moment for market share. 4. Regulatory Clarity = Green Light - From MiCAR in the EU to the SAB 122 shift in the US, regulation is no longer the bottleneck. Instead, it’s becoming a catalyst. - The SEC’s rollback of SAB 121 lowers capital requirements for crypto custody, making digital assets more attractive to banks and institutions. 5. Blockchain Solving Real Problems Today - Walmart cut food traceability time from 7 days to 2.2 seconds using blockchain. - ESG reporting, luxury authentication, and cross-border settlement are just a few of the enterprise use cases going live. So What? - This isn’t hype—it’s hard data. - Institutional adoption is not on the horizon. It’s here. - For founders, CFOs, and policymakers: the question is no longer why digital assets—but how to win in a world that settles in real time.

Everyone called the broker selloff in February an overreaction. WTW dropped 12% in a single day. AJG fell nearly 10%. Aon down 9.3%. All because a comparator app launched inside ChatGPT. The consensus from analysts: overdone, overblown, nothing to see here. Then BofA quietly dropped a report saying 10-20% of current broker business could face disintermediation from AI agents, and that the market had moved on too fast. Here's what I think gets lost in this conversation: The panic was wrong about WHO is at risk. It's not Aon or WTW. It's not complex commercial lines or specialty risks. Those businesses require human judgment, relationships, and expertise that no chatbot is replacing anytime soon. The panic was right about WHAT is at risk. Commoditized personal lines. Standardized small commercial. Any transaction that's price-driven and process-driven. If a consumer can type "find me the best auto rate in Florida" into ChatGPT and get a bindable quote in 60 seconds, that part of distribution changes. Full stop. The producers and brokers who should be paying attention aren't the ones placing $50M towers. It's the ones whose book is built on renewals that require no real expertise to service. The agents who thrive through this are the ones whose value isn't the transaction. It's the relationship, the coverage analysis, the advocacy at claim time. That's not going away. But the easy money? That's under pressure. What's your read on where AI hits hardest in distribution? #Insurance #InsuranceBroker #AIinInsurance #InsurTech #InsuranceIndustry #RetailInsurance #FutureOfInsurance #InsuranceDistribution #CommercialInsurance #InsuranceLeadership #NewmanGroupSearch #InsuranceRecruiting

🔵 State of Crypto 2025: Crypto Is No Longer Just ‘Crypto’ 🚀 Just reviewed the latest 𝐚𝟏𝟔𝐳 𝐒𝐭𝐚𝐭𝐞 𝐨𝐟 𝐂𝐫𝐲𝐩𝐭𝐨 𝐑𝐞𝐩𝐨𝐫𝐭, and wow—2025 is the year this industry finally outgrew its old labels. Here are some highlights: 🚀 Token innovation is accelerating, now seen as a new digital primitive on par with websites for previous internet generations. 💸 A major shift in economic activity: Hyperliquid and Solana generate 53% of revenue on blockchains today, surpassing Bitcoin and Ethereum's former dominance. 🏦 Traditional finance giants like Circle, Robinhood, and Stripe are building new blockchains focused on payments, real-world assets, and stablecoins — signaling mainstream adoption is underway. 📈 Stablecoin mentions in SEC filings have surged by 64%, highlighting growing regulatory focus and market importance. 🔥 Digital Asset Treasury (DAT) companies now hold about 4% of total Bitcoin and Ethereum, with exchange-traded products pushing that to 10% — crypto is becoming a core treasury asset class. 📊 Decentralized exchanges (DEXs) are rising, accounting for around 20% of spot trading volume and even surpassing centralized exchanges in revenues. 🌐 Beyond finance, DePIN (Decentralized physical infrastructure networks) is reimagining physical infrastructure networks like telecom and energy — with grassroots innovations like the Helium wireless network leading the way. 🔒 Privacy, quantum readiness, and AI-crypto innovation stand out as key future growth areas where blockchain will contribute to the advancements in the AI tech cycle. I view the term ‘Crypto’ as an umbrella term that barely contains the richness of today’s ecosystem, which includes innovations in infrastructure, apps & Dapps, banking, and investment products. The a16z State of Crypto 2025 report is an extremely data-rich read that turns the spotlight onto the diversity and depth of what’s unfolding. If you care about the future of blockchain and digital assets, you need to dive into this report. #crypto #digitalassets #fintech

Shaping the future of payments • Trend 1: Cash finds its floor-Consumers use credit cards, peer-to-peer (P2P), and other digital payments more frequently as checks move toward extinction and cash finds its floor. • Trend 2: Regulators bring nonbanks into the fold-Expanded scope of banking regulation, to include nonbanks, will change the players of the payment market as some nonbank payment providers leave due to increased regulation. • Trend 3: BNPL moves to industry sectors-Buy now, pay later (BNPL) and other digital payment options will expand into new sectors like housing and utilities, grocery, car payments and repairs, and travel, especially as consumers battle inflation and focus on nondiscretionary spending. • Trend 4: ISVs increase their SMB hold-Small and midsize business (SMB) merchants gravitate to integrated software vendors (ISVs) for operational simplicity and provide pre-integrated payment rails, including consumers' go-to digital wallets. • Trend 5: Al drives fraud prevention to newer dimensions-Artificial intelligence (Al)-driven fraud models will expand to better consider consumers' digital identity and personalized spend insights to combat the growing complexity of fraud. Delloite Report: https://lnkd.in/gWkNGUyc #payments #banking #financialservices #openbanking #ai #fraud

During my recent visit to the Bank for International Settlements – BIS Innovation Hub Tour in Zurich, I had the chance to meet David Chaum, the grandfather of cryptocurrencies, and an advisor to my friend’s Melanie Mohr startup, PWR Labs. The insightful interaction occurred amidst a deep dive into the transformative projects aimed at reshaping the financial landscape. Project Nexus aims to streamline global commerce by creating a multi-national real-time payment network which the Reserve Bank of India (RBI) also joined recently. Project mBridge utilizes CBDCs to tackle inefficiencies in cross-border foreign exchange payments. By developing a robust multi-jurisdictional ledger, it ensures faster, secure, and cost-effective transactions, highlighting the practical applications of digital currencies in enhancing financial connectivity. Project Aurora leverages blockchain technology alongside artificial intelligence and machine learning to strengthen anti-money laundering initiatives. This integration enhances data privacy and cross-institutional collaboration, improving detection capabilities across borders. Project Agora involves working with central banks and private sector financial institutions to innovate settlement processes through wholesale tokenized assets and smart contracts. A month ago, I critiqued the concept of the 'Finternet' (https://lnkd.in/g4eVKqYw). At the time, I pondered whether this was a genuine breakthrough or a rehashing of ideas already explored by Ethereum, which has been a pioneer in programmable blockchain technology. Ethereum's framework has paved the way for tokenized assets, smart contracts, unified ledgers, and decentralized finance (DeFi), all of which are elements of the Finternet vision. Engaging with the BIS Innovation Hub has reshaped my view: their projects skillfully integrate cutting-edge blockchain technologies into traditional financial frameworks, not merely repackaging old ideas but weaving them into the global finance fabric. The focus now shifts towards enhancing interoperability across systems, with open blockchains and foundations like Ethereum increasingly playing a crucial role. This synergy promises a future where financial systems are not just connected but are universally innovative and efficient. Stay tuned for more insights from the The Proof Of Work Podcast Europe IRL Tour in the coming days. Thanks to Maha Al-Saadi for the snapshot setting the stage for our next tour in Qatar. 😁 🤝

Welcome to the latest edition of the Fintech Wrap Up Newsletter—this week we’re diving into tokenomics, the UK’s stablecoin ambitions, Ethereum’s evolving architecture, Southeast Asia’s digital payment surge, global open banking trends, and real-world tokenization use cases. All the full reports are available for download at the end of each section. Tokenomics is no longer just a buzzword—it’s the make-or-break factor for crypto projects. Binance’s report reveals how projects are shifting from public sales to community-driven incentives like airdrops and lockdrops. Longer vesting periods and burn mechanisms are helping manage inflation and align incentives. But even the best token model can’t save a weak product—utility, trust, and sustainable demand remain critical. In the UK, Innovate Finance highlights a race against time. While lagging behind global peers, the UK still has a shot at stablecoin leadership—if it builds a forward-thinking regulatory regime. Stablecoins could power AI-driven finance, tokenized securities, and even support the government’s digital gilt ambitions. With London handling 40% of global FX turnover, capturing 10–20% of the future stablecoin market ($20–40B) isn’t far-fetched. Nethermind and Deutsche Bank explore Ethereum’s evolution into an institutional-grade platform. Innovations like Proposer-Builder Separation, Single Slot Finality, and Trusted Execution Environments are transforming how Ethereum handles security, compliance, and real-time settlement. Layer 2 networks offer scalability with governance frameworks familiar to financial institutions. Southeast Asia is rewriting the playbook on ecommerce and payments. By 2028, 94% of online payments will be digital, with mobile wallets, BNPL, and real-time payments leading the way. Indonesia will emerge as the region’s largest ecommerce market, while Singapore and Vietnam push payment innovation forward. Cross-border ecommerce is booming, but it brings complexity. Open banking is going global, with 95 jurisdictions now charting their own paths. Regulation-led models dominate in Europe and the Middle East, while market-driven frameworks thrive in Africa and Asia-Pacific. Broader regulatory coverage enables richer data-sharing, paving the way toward full-scale open finance and cross-sector open data. Tokenization is also moving from theory to reality. Ripple’s report showcases high-impact use cases across bonds, real estate, collateral, treasury, and trade finance—unlocking liquidity, reducing friction, and cutting costs. Meanwhile, JPMorgan and MIT’s joint research proposes a new design standard for payment tokens with compliance, UX, and governance in mind. Until next time—stay curious, and keep building. #fintech #payments #banking

GFTN Global Digital Assets Report This inaugural GFTN Global Digital Assets Report provides a comprehensive cross-jurisdictional analysis of the evolving digital asset ecosystem, focusing on market developments, regulatory trends, and forward-looking policy implications. The report is designed to serve as a practical reference for policymakers, central banks, industry participants, and international standard-setting bodies navigating the rapid transformation of digital money, tokenization, and decentralized finance. Thank You Arthur D. Little | Arjun Vir Singh 🞕 Trends and Key Highlights ➟ At least nine of 12 jurisdictions studied have implemented or are drafting digital-asset frameworks, signalling growing recognition of responsible innovation in the space. ➟ 47% of survey respondents highlighted that digital assets could enhance efficiencies in cross-border payments, while 36% projected new financial services driven by programmability and smart contracts. ➟ A majority of respondents surveyed see capital market efficiencies via tokenisation (56%) as key growth opportunities for digital assets, with nearly half (46%) also highlighting programmable money as an emerging frontier. ➟ Asia leads in cross-border payments and tokenisation pilots, driven by public-private collaboration and live projects such as Project Nexus. ➟ Europe continues to advance regulatory clarity through MiCA and digital-euro trials. ➟ The Middle East is emerging as a fast-growing innovation hub, leveraging digital-asset sandboxes and sovereign-wealth investment. ➟ The Americas are moving toward institutional adoption, supported by the U.S. GENIUS Act and listings of digital-asset exchange-traded funds. 🞕 Real-World Impact ➟ Small and medium enterprises (SMEs) gain faster, cheaper access to cross-border payments and financing through tokenised assets and programmable money. ➟ Migrant workers benefit from instant, low-cost remittances powered by stablecoins and interoperable payment systems. ➟ Investors can access fractionalised portfolios of previously illiquid assets such as infrastructure and real estate. ➟ Governments and regulators leverage blockchain-based transparency to improve supervision and public-sector efficiency. ➟ Financial institutions deploy blockchain and AI-enabled compliance tools to reduce settlement times and strengthen risk management. Excellent Report By combining first-hand inputs from global decision-makers with structured analysis of market activity and regulatory frameworks, the methodology provides a comprehensive and forward-looking assessment of the industry.