Which Company Will Become the Amazon of Fintech?
“How can we become the Amazon of Fintech?” Find any Fintech start-up with a revolutionary idea and you’ll discover them asking the same thing. But with new start-ups continually popping up and with an ever-changing tech landscape, who will rise from the competition and become the next big success story?
In this article, we’ll discuss three start-ups we believe have the power to compete with the big players and potentially become the next ‘Amazon of Fintech’.
Already the world’s highest-valued Fintech, Ant Group is an affiliate company of the Chinese Alibaba Group. Their company aims to offer consumers and small businesses equal access to payment and financial services through technology.
Seven hundred million people currently use Ant’s Alipay service every month, that’s more than half the population of China. This large volume of users has led to Ant handling more than $17 trillion in digital payments in China during the last year.
They recently took the next step to further their business growth by aiming to launch an IPO. However, the IPO was pulled by Chinese regulators due to concerns over their micro-lending business. The IPO would have valued Ant at $310 billion, making it worth than the likes of Goldman Sachs. However, Ant will most likely re-launch its IPO sometime next year.
Despite being the highest-valued Fintech in the world, the company still primarily focuses on the Chinese market. If Ant is to become a worldwide superpower, then they’ll have to scale out to more countries around the world, if they can successfully do this then they look most likely to become the Amazon of Fintech.
PayPal is widely regarded as the king in online payments. They are the largest online payment transfer platform in the world, serving more than 300 million people from 200 countries in 25 currencies.
PayPal looks determined to dominate the payments space, their recent $4 billion acquisition of Honey and $2.2 billion acquisition of iZettle is testament to this. This focus on diversifying and building new partnerships means that they can make financial services more accessible to people around the world, whilst also making it more affordable and easy to use.
The payment provider now has a valuation of $260 billion, making it the second-largest Fintech company in the world. Paypal is already a leading brand, but has it got the potential to become a dominating power? Time will tell.
Revolut is arguably the most disruptive neobank in the market right now. The company aims to allow users to manage their entire financial life all from an app. From buying crypto to budget tracking, Revolut has it all.
Despite only being founded back in July 2015, their valuation sits at approximately $5.5 billion. With over 12 million users, the growth they have achieved in such a small space of time is astonishing. Every month, 600,000 people open an account with Revolut, and this growth shows no signs of slowing down.
Currently, most of Revolut’s users reside in Europe, but they are aiming to expand globally and have their sights set on Asia and North America.
Their valuation is still microscopic compared to the large financial institutions and big tech companies, but Revolut certainly has the potential to become a force to be reckoned with. If they can continue to add to their user base, we may see Revolut become a financial superpower one day.