I used apps like Paypal, Revolut and Stripe to process payments from which I pay my staff. The often-heard phrase, “I’ll send a [bank] wire,” has transformed into “I’ll Paypal or Revolut you.” Technology has transformed the way we use and perceive digital money.
Digital money is one of our greatest opportunities. Creating products that help us work with digital money is a potential gold mine. For example, helping entrepreneurs move money for their day-to-day startup operations (faster than corporate) is not only good for the economy but good for big business — and we see it in the recent unicorns.
In 2018, $24 billion dollars was invested across 186 deals in the fintech industry. 30 companies became unicorns (1 b+ evaluation) including stripe and revolut. More than half of these exits took place in the United States (56%) with the United Kingdom and Europe falling behind (18%).
Since my company is in the UK, and I am not a resident, using Revolut to receive and send money from my clients without having a bank account is a godsend.
The financial services industry will continue to be transformed by tech startups and this is only the beginning. From capital markets to digital banking and wealth management, we will continue to see an upswing in this trend. The number of investments for these companies nearly tripled in 2018, and much of that is attributed to blockchain technology. We are not there yet to see this type of deal flow exclusively across cryptocurrencies and blockchain companies.
Yet I anticipate at least a 5% adopt in the next 3–5 years. Although a 10% global GDP will be attributed to blockchain by 2025 may seem to far off, technology moves at an accelerated pace and once big governments and banks are on board, those numbers will be realized.
Interesting and exciting times ahead of us.
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Written by Alice Hlidkova, Co-Founder of New Economies