RIVERWOODS, Ill.–A new study has found considerable optimism around the future of fintech.
The third annual Fintech State of the Union study, conducted by Discover Global Network, surveyed numerous sectors to reveal key areas for growth, the value of fraud prevention and security, and the rise of digital payments among consumers.
Among the are key takeaways from respondents in the North American market:
- VCs believe that investments/capital markets (78%), payment processing (67%), and fraud prevention (64%) are the fintech segments with the most growth opportunity in the next five years.
- 56% of VCs believe it’s critical for fintechs to build strong relationships with payment networks.
- VCs are looking for fintechs with experienced operating teams (44%), proven customer traction (44%), proven founders (33%), favorable valuation (33%) and technology capabilities (31%).
Fraud Prevention & Security
- Fintechs see payment and data security (59%) as a highly relevant use case.
- 56% are most interested in partnering with a payment network to develop solutions for data payment security, followed by cardless online payments (20%) and commercial B2B payments (18%).
- The most critical factor to consumers when using an emerging payment experience is security of personal information (67%).
Digital Payments & E-Commerce Continue to Rise
- 46%) of consumers have reduced discretionary spending and 86% of consumers use at least one digital payment service; up 17 points year-over-year.
- Online (54%) is now the preferred channel for discretionary spending over in-store (46%) in the U.S.
- While manually entering personal payment information continues to be the preferred way of making online payments to a business for consumers (34%), one-click checkout rose four points (27%) year-over-year.
- Tapping a card at checkout is now the preferred payment method for in-person payments at business for consumers (39%), increasing six points year-over-year and surpassing inserting/swiping a card (32%).
For additional info, download the full study
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