The Green Sheet Online Edition
October 10, 2016 • Issue 16:10:01
Why is fintech all the rage now?
Financial technology, shortened these days to fintech, has been evolving and dramatically impacting our lives for a long time ‒ at least as far back as the early days of the telegraph. Why is everyone in payments talking about it now, as though it was some kind of new thing, like the new kid on the block? I don't get it. I'm not saying it's not important, but really, what's all the fuss about? Why now? Is there some kind of crowd mentality at work, where everybody is trying to grab at the ever illusive latest greatest thing? Hasn't staying abreast of new technology been part of our job all along?
Evan Atherton, Customer service rep
Yes, it is true that sharp payment pros, including ISOs, merchant level salespeople and processors, have always followed technological developments and have developed visionary products for years without mentioning the word "fintech." The payments industry didn't used to get much attention from outside investors, regulators and tech companies either.
However, all of that has changed. It's hard to say exactly when our sector began receiving so much attention, but it has accelerated and grown like a snowball speeding down a steep hill. And new technology has made it possible for folks outside of payments to introduce new payment solutions that compete with those of more established players.
This has caused many within the industry to realize the importance of partnering with fintech companies to create joint solutions that do more for merchants than was ever possible before. The Electronic Transactions Association's reaching out to Silicon Valley entrepreneurs is one example of how our sector has taken steps to establish close working relationships with tech companies. Some payment companies that have their own proprietary technology are themselves fintech companies. It's natural that we would be using the term fintech with increased frequency. Fintech isn't a fad; it's here to stay.
What's your take on fintech?
Is your business a fintech company that has developed proprietary technology? Are you partnering with a fintech to offer new merchant solutions? Let us know at firstname.lastname@example.org.
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