Frontier fintechs are a rapidly growing sector in the financial industry. These new players in the industry offer innovative solutions to traditional financial services, often using cutting-edge technology to provide fast, convenient and cost-effective financial solutions.
One of the key characteristics of frontier fintechs is their focus on customer-centricity. Unlike traditional financial institutions, fintech companies emphasize the needs of their customers and strive to offer personalized solutions tailored to individual needs.
For some years now, companies such asXTM Inc.XTMIF ,Fleetcor Technologies Inc.FLT ,Nuvei Corp.NVEI ,EVO Payments Inc.EVOP , andSoFi Technologies Inc.SOFI are disrupting traditional financial services with innovative technology and user-centric approaches. They are changing the way people invest, pay, borrow, insure and manage their finances.
Due to these benefits, the fintech industry is growing at an unprecedented rate, and the impact of these frontier fintechs is being felt as the world becomes increasingly digital. The global fintech technologies market wasvaluedat $110.57 billion in 2020 and is projected to reach $698.48 billion by 2030, growing at a compound annual growth rate (CAGR) of 20.3% from 2021 to 2030.
As more people and companies shift towards digital payments, the competition in the frontier fintech industry is rapidly growing. Such competitions are always good news for consumers, players, investors and watchers of the industry.
A Look At Five Frontier Fintechs
A Miami and Toronto-based fintech innovator founded in the cloud-banking space,XTMseems to be strategically leading the sectors evolution as many expect to see more exciting innovations from the industry.
Established as a leader in on-demand pay with many large brands, includingMarriott International Inc.MAR hotels andLive Nation Entertainment Inc.LYV , the company says it is continuously innovating to support businesses with its shift scheduling and call-outs, staff management, expense management, in-app health and financial wellness; and gamified loyalty programs.
But how does XTM stack up against Fleetcor, Nuvei, EVO, and SoFi?Fleetcor:
Fleetcor offers payment solutions that help businesses control, simplify, and secure payment for fuel, general payables, toll, and lodging expenses. The company says it simplifies payments by automating, securing, digitizing, and controlling transactions for employees and suppliers.Nuvei:
Nuvei is a Montreal-based payment technology company. The company operates a platform that connects merchants with more than 470 payment methods, including cryptocurrencies. Nuvei serves retail, gaming, hospitality, digital goods, and other industries.EVO Payments:
EVO Payments is a payment technology company that supports various payment channels, such as in-person or online transactions. The company offers an integrated merchant acquirer and payment processor in over 50 markets and 150 currencies worldwide. For the quarter that ended September 30, 2022, EVO Paymentsreportedrevenue of $138.7 million.SoFi:
SoFi is a finance company that provides lending and loan refinance, insurance services, wealth management, savings, and banking products. For 2022, SoFirecordeda net revenue of $1.6 billion.The XTM Advantage:
Overall, XTMs payment technology platforms uniqueness gives it a competitive advantage over some of its peers. As the companys industry continues to grow, XTMs payment solutions have the potential to become a force to be reckoned with. In comparative terms. The companys real-time, safe, and efficient payment system, along with theirVisa Inc.V andMastercard Inc.M card integration, could help XTM become a market leader.
The company uses a cloud-basedPCI-compliantarchitecture that allows for quick scale, multi-language and time-zone usage. XTM provides a digital earnings platform for service workers includinghospitalityand personal care workers known as theToday Financialapp.
The app, comprised of a mobile app and wallet paired with a Visa or Mastercard debit card with banking features, is used by thousands of restaurants, salons and service staff across Canada and the U.S., and it enables hundreds of thousands of workers to access their earned wages instantly, giving them more control over their finances.
Furthermore, XTMs approach can also help businesses by significantly reducingpayrolladministration time and costs, which can be particularly helpful for organizations that have multiple payment locations. The companys services can be a game changer in the hospitality industry, which has unique payment challenges, such as inconsistent working hours and high cash utilization.Partnership With Payfare
On March 3, XTMannouncedsigning a deal withPayfare Inc.PAY , a leading fintech powering instant payout and digital banking solutions for the gig workforce.
Through this partnership with Payfare, XTM said it will integrate into Payfares embedded finance and open API platform for card issuance, digital banking and instant payments. XTMs proven Earned Wage Access (EWA) solution will take advantage of Payfares relationships and significant economies of scale to quickly enter and expand its offering across the U.S. market.
According to the company, the integration is in progress, and XTM expects to start the full rollout in Q2 2023. It plans to migrate its current clients from its previous issuing bank, and all future banking and processing will be through Payfare.
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