One watching the business space will wonder if every company is vying to get their hands into fintech space. There are numerous wallets, digital payment options and every retailer as some kind of BNPL (But Now Pay Later) options. Is fintech a strategy or a tactical move? Why is there a FOMO among every company to be in the fintech race?
Every non-profit business deals with money. Removing the obstacles to spending is the ultimate goal of every business. Companies are using payment solutions like Stripe or Paypal to make it seamless for consumers to spend. But what if they can vertically integrate the payment ecosystem?
It is often said that Amazon not only views other online retailers as competitors but also participants in their value chain. Because those in the value chain get a share of their profits. They stand to gain better by owning as many steps in value chain like warehousing, delivery and payments. Now every corporation is thinking this way.
So I believe fintech is a strategy for an organization of future. Whether it is about digital payments or wallets or BNPL, companies want a share. They want to have the cake and eat it too.
Incumbents in finance are not just watching. There will be consolidations, partnerships and other strategies to be part of the game.
It is an interesting time to be in the finance space, both as a consumer and a creator.
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