The convergence of fintech and e-commerce was something inevitable owing and today the fintech e-commerce industry is growing at a impressive rate with both the areas sharing a symbiotic relationships. The advent of smart, fast, and secure payment platforms has helped e-commerce speed up their sales by offering their customers hassle-free and trustworthy payment gateways.
Fintech solutions are not limited to but also include a wide variety of products and services that facilitate smooth functioning of ecommerce brands. In 2018, 21.3% of the total global investments in the fintech segment was raised by the e-commerce players in it. Let us look at some of the top Fintech e-commerce companies in the world that have outdone the others in the fintech sector.
Coinbase is a San Francisco-based company that specialises in the trading of cryptocurrency. Users of the platform can buy and sell digital currencies of bitcoin, litecoin, and ethereum. The digital currency wallet was co-founded by Fred Ehrsam and Brian Armstrong in 2012 and has completed transactions valuing over $150 billion till date. This fintech e-commerce brand boasts of a user base of 20 million and support from prominent investors like Andreessen Horowitz, BBVA, and Y Combinator among the others. Coinbase has made 10 acquisitions in its six years of existence and is among the most valuable startups in the world. As on date the ecommerce companies not fully integrated with Crypto, however in the next decade, we will see crypto as a strong mode of payment globally. Japan’s largest e-commerce platform, Rakuten, has announced in Jan 2019 that it will buy Everybody’s Bitcoin Inc, a Japanese cryptocurrency exchange, through its credit card subsidiary, Rakuten Card.
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Hanzhou-based startup Ant Financial is one of the highly funded companies in the city’s ecosystem. The unicorn company secured a whopping $14 billion in its Series C round of funding from lead investors GIC and Temasek Holding in 2018 and securing its place as one of the top Chinese startups to watch out for in 2019. Ant Financial is an open and secure credit and financial services platform whose services are available globally.It is an affiliate of the Alibaba Group and was founded by Lucy Peng in 2014. Within less than five years of establishment, this startup has raised $18.5 billion and made two acquisitions.
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Plaid laid its roots in 2013 as a disruptor among the fintech service providers with its platform that helped various e-commerce players connect and access financial services online. This top fintech startup in San Francisco has got all the products that aids in the creation of a digitally-enabled financial system for enterprises of all scales. William Hockey and Zach Perret co-founded this company in 2012 and touched the billion dollar mark in no time. Plaid has completed transactions worth $10 billion on its platform and is backed by the likes of citi, American Express, and Goldman Sachs.
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Kickstarter was formed in 2009 with an aim to help creative professionals find the funding for their aspirations making them reality. The platform has found the backing of more than 16 million supporters who have made a combined contribution of $4.1 million. It was co-founded by Perry Chen, Charles Adler, and Yancey Strickler who made the platform beneficial for the benefactors as well. Kickstarter is based in Brooklyn and among the fast-growing crowdfunding startups in the region.
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Blockchain is a London based bitcoin wallet company. It is one of the pioneer fintech companies in the digital currency arena and has been touted to be one of the most popular digital currency wallet service provider. Blockchain was co-founded by Ben Reeves, Nicolas Cary, and Peter Smith in 2011 and is backed strongly by VC firms like Wicklow Capital, Google Ventures, and Lightspeed Venture Partners. The company aims to create a broad global community access to advanced financial services and tools by giving the end users the top most priority. Apart from offering a dynamic platform that facilitates secure and safe transactions, Blockchain is a also a trailblazing company when it comes to the research in the field.
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Top Countries with a Soaring Fintech Ecommerce Sector
In the five years leading to 2018, fintech startups saw a stupendous growth rate of 28.4%. This rate is for the increase in the number of startups around the world. India, China, and the United States have been consistently topping the charts in this segment and in 2018 too were among the top countries to showcase a soaring fintech e-commerce sector.
Let us look at each of the country’s performance as a startup ecosystem in detail.
China as a market for Fintech companies for E-Commerce segment
Ant Financial, one of the five largest fintech companies, is a Chinese brand that is a part of the cluster of Chinese fintech unicorns that are getting recognized globally. China’s startup sectors of finance and e-commerce enjoy a good share of the total venture capital funds in the country and according to research by JP Morgan, the sectors revenue is expected to touch $175 billion by 2020. Web payments/remittances services are the most popular services in the region that is helping create a robust convergence of e-commerce and fintech services in the region. Lending and Insurance are the other two areas where Chinese fintech marketplaces lead.
India as a market for Fintech companies for E-Commerce segment
Home to more than 25,000 startups, startup ecosystems in India are among the fast growing ones in the region. Fintech and e-commerce have a prominent place in the country especially after the completion of the Walmart-Flipkart deal, one of the largest deals globally that turned the tables for the Indian e-commerce scenario. India is a key pillar of the larger Asian fintech market which at present is undergoing a critical transformation. Increased adoption of digital currency, openness to open banking, and the rising popularity of AI based services are some of the key events that are propelling the success for fintech in India. As the country jumps on the open digital economy bandwagon, there have been a set of initiatives and moves that have been introduces to make this move easier. According to a report by KPMG, total AI spending in the fintech segment is expected to touch $52.2 billion by 2021. This is a good indicator of how well the fintech segment is developing.
United States of America as a market for Fintech companies for E-Commerce segment
USA was among the pioneer countries to encourage innovation and is home to some of the largest startup sectors in the world. The country continues to rule the roost in a lot of sectors; fintech and e-commerce have grown tremendously in America in the years from 2014 to 2018. The fintech economy touched an all time high investment value of $5.8 billion in the last quarter of 2017, according to KPMG. Insruance is a growing area where e-commerce and fintech solutions are proving to be lucrative making it a prominent online marketplace category for financial services.
Top trends for Fintech companies servicing E-Commerce segment
The advent of fintech has allowed businesses, government, and consumers conduct smooth and secure transactions over the web in exchange of services and tangible goods. Fintech is no more an independent segment that is helping the e-commerce industry grow but has also become an important category of online market places for fintech products and services. The following are some of the top trends in the fintech segment that have shaken up the industry.
A Soaring Blockchain Technology Sub-Sector
The advent of blockchain technology has helped fintech and e-commerce merge like never before. The unmatched safety, the flexible yet clear terms, and the pricing freedom is helping make online transactions more transparent and decentralized.
Increasing Adoption of Electronic Wallets and Advanced Payments
Electronic wallets and advanced payments technologies are helping e-commerce companies target a broader audience today. A large part of it also includes audiences from different parts of the world who still do not have access to traditional banking services. International transactions have also been boosted with the help of these technologies.
Cryptocurrencies – Driving Transformation in the Digital Payments Arena
The e-commerce segment has benefited vastly as more and more banking organizations are now onboard with cryptocurrency offering a robust platform for trading in the same. Cryptocurrencies are another secure alternative to traditional digital payments and have gained wide acceptance in the recent years.
Early adoption of technology remains key for fintech and e-commerce to develop. The last five years saw an eruption in the new disruptive technologies that are continuously changing the way online marketplaces function.
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