Every day people spend a whooping figure of around 13 billion US dollars worldwide on online shopping. Generally, it creates a huge market of e-commerce sales estimated at roughly 5 trillion USD per year. And that figure only mounts up. Namely, fintech software makes this revolution happen. And that’s just the beginning!
A Story of a Fintech Startup Path From $0 to $36+ Billion in a Decade
Back in 2010, online shopping was already on the rise. However, the single hardest thing in setting up an online business was hidden under the payments integration. It was really difficult to accept fees on the web. The two Collison brothers started thinking about how to deal with the issue globally. They believed that it all could function a lot easier.
The initial idea was to focus on a technology solution for app developers who can merely integrate it into the e-commerce website or web app instantly. After that, the online retailer could simply accept and pay money. Within just two weeks the brothers have spent on creating an MVP, then performed their first transaction, and within a few years have built a fintech services ecosystem. That’s how Stripe was founded.
The developers‘ community has appreciated the efforts in building a fintech product for them. There was almost no competition in the online payments niche. Paypal was the biggest competitor, however, it was more focused on building a product for consumers, rather than developers. Integrating payment API for business use cases into apps, websites, marketplaces at scale was the winning decision of the Collison brothers.
With a focus on developers, Stripe has substituted a lengthy enterprise sales cycle into a fast customer adoption. Amazon, Uber, Shopify, Postmates “ all of these giants use Stripe to process payments. Actually, there’s a good chance you have already made a purchase via Stripe, even if you are not aware of it.
Success for the two young startup founders is far from a godsent. The secret souse is in a blend of vision, business acumen, and a little charisma. It all helped them to raise millions of dollars in seeds funding. Within just 4 years the Stripe‘s valuation rises above billions. And after a decade, the fintech company is evaluated at US $36 billion.
So, How on Earth Did They Do It?
Let’s see their route to success step-by-step. And possibly replicate it ¦
Step 1. Solve a Real Problem
While every side of starting an online business became simpler, payments processing has been far from an easy task. That’s how the Stripe idea was born.
With a focus on developers, instant setup opportunities, and flexible scalability, it has won the hearts of even the biggest tech companies like Facebook, Microsoft, Google, and so on.
Step 2. Focus on User Experience
They have been obsessed with customer satisfaction. The fintech product should be easy to use “ just copypaste several lines of code and go ahead to enjoy smooth payments processing.
The tech documentation was clear as day that allowed e-commerce brands to integrate payment systems within a couple of hours.
Step 3. Evolve Continuously
Even if you are a trailblazer and a leading fintech company, the competition never sleeps. So to keep the top positions on the market, you should always continue innovating.
Stripe strengthens its leadership by special price offers, a worldwide presence, and custom software solutions built for specific business areas.
These are three simple steps that helped Stripe grow into a huge fintech ecosystem with Forbes 50 enterprises among its clients. Amazing, isn’t it?
So why not replicate this kind of success in the fintech arena? Especially since the market continues to grow and is in such a burning demand for fintech apps able to revitalize the financial sector.
Top 5 FinTech Trends to Watch in 2021
Fintech developments undergo fast so those entrepreneurs, who wish to follow the innovations, will want to keep up. Here are the top trends that will change financial services in the upcoming year.
Wealth Management
Big technology companies like Amazon, Microsoft, and Google are already creating the digital infrastructure necessary for wealth management proceedings. Almost 75% of global top entrepreneurs claim they would use these services from the big giants.
Robo-Advisor Adoption
The financial advisory services with the artificial intelligence touch have become really popular. It is expected to grow even more “ to US $830 billion by 2024.
Regulation Technology
There are still too many operations performed manually. It is expected that regulation technology systems will be adopted in a much bigger volume. It is beneficial in both streamlining processes and saving costs.
Co-Development And Joint Ventures
Fintech solutions continue replacing the outdated legacy systems on the market. Co-development and joint ventures are expected to appear in places filled with inefficiencies. Fintech software can reduce the sales costs in the back office of traditional financial institutions.
Non-Fintech Players
Even non-tech companies are looking for new ways to monetize their services and grow their customer base. Other fintech software companies continue expanding their services and enter other fintech niches like lending, etc.
Conclusions
The bottom line? Fintech is officially a major direction that will transform financial services for good. It is a serious player in the global economy that is rapidly growing and, for sure, here to stay.
Looking at the prospects fintech software can provide and the already functioning top fintech companies, there is a place for deep thought here. What can you learn from their strategies? The most obvious answer is to add a competitive value to your fintech product. That is exactly what made them successful in the first place.
However, you can find your own competitive edge “ as the market is booming, there is always a certain spot for creativity.
Even if you are not representing the financial industry. As the latest trends state, there is room for everyone willing to monetize their businesses.
