Effects of Digital Transformation in Datacentres
20 Dec, 2024
The FinTech industry is increasingly vast, ranging from back-office to front-office software for buy-side and sell-side businesses, pre and post-trade technology, green/clean tech, and everything in between. One particular subsector within financial technology that continues to innovate, excite and expand is the payments space. According to a report by Mastercard, global payments revenue grew 5% annually between 2017 and 2019, and then grew 16% between 2021 and 2022 - with global revenues exceeding $2.2 trillion, a $500 billion increase since 2017. This article gives an overview of two factors driving the industry’s growth over the coming years:
Firstly, the increasing role of decentralised finance (DeFi) and cryptocurrencies allows businesses to offer faster and cheaper transactions globally. In Europe, around 30% of blockchain technology market value was attributable to the banking sector, 16% of which was used for cross-border payments and settlements. In October 2020, PayPal announced a new service allowing customers to buy and sell cryptocurrency directly from their PayPal accounts - representing the fusion of crypto and traditional payments in a “mainstream” organisation used by millions. The following year, another household name, Visa, announced they were building a “payments hub” allowing the transfer of digital assets across payments channels using a “Universal Payments Channel”.
Both cases are clear examples of global, well-established businesses incorporating blockchain/crypto technologies to make the process of completing payments quicker, cheaper and more innovative for consumers. At the same time, a number of “niche” FinTechs focused on the role crypto can play in the payments sector are making waves in the space. These include BVNK, Unlimit, BitPay, and Orbital, to name a few. These businesses are continuing to make impressive strides and add to their headcount, revenues, and customer reach, with new names and players surely set to enter the space throughout this decade.
Biometric Payments
Biometric payments are another exciting facet of the payment sector’s wider growth within financial technology. A biometric payment is a “point-of-sale” (POS) technology that uses authentication based on physical characteristics (fingerprint, eyesight etc) to identify the user and authorise the transaction. This market was valued at $8.8bn in 2023 and is set to rise to over $37bn by 2033. This is a compound annual growth rate (CAGR) of 17.1%, with the Asia-Pacific region set to experience a staggering 63.6% CAGR.
Factors driving this growth include security, with payments via eyesight/fingerprint considered much safer than using PINs/passwords. Additionally, this method of payment is seen as more convenient—if a consumer accidentally forgets or loses their card, they can still pay using their eyesight or fingerprint. According to research from security business IDEMIA, 81% of consumers preferred the use of fingerprint biometrics over PIN codes in 2021.
This is definitely a subsector within the payments industry worth watching over the coming years, with start-ups such as Zwipe, PayFace and Privaris making impressive moves in terms of both growth and innovation.
By Finn Williams, Senior Recruitment Consultant at Harrington Starr
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The payments sector is one of the most dynamic areas in FinTech, showcasing remarkable growth and innovation. At Harrington Starr, we are proud to be at the forefront of this evolution, connecting businesses with the talent they need to thrive in a rapidly changing industry. As a specialist FinTech recruitment firm, we work with organisations across the globe, from innovative start-ups to established market leaders, helping them build teams that drive innovation in payments technology and beyond.
The rise of cryptocurrencies and blockchain has transformed the way payments are processed, with decentralised finance enabling faster, cheaper, and more secure transactions. As highlighted in this article, companies like PayPal and Visa are leading the charge, integrating blockchain to enhance their payment ecosystems. Simultaneously, emerging players like BVNK and Unlimit are expanding their presence, shaping the future of digital payments. At Harrington Starr, we have the expertise to match these forward-thinking businesses with professionals who possess the technical skills and strategic insight to push boundaries in blockchain and crypto.
Equally exciting is the growth of biometric payments, which blend advanced security with unmatched convenience. With the market set to grow at a staggering 17.1% CAGR and innovative start-ups like Zwipe and PayFace leading the way, this subsection offers immense opportunities for businesses and professionals alike. As FinTech companies look to leverage biometric solutions, Harrington Starr is here to support their recruitment needs, ensuring they secure the talent required to innovate and succeed in this competitive space.
At Harrington Starr, we understand that talent is the cornerstone of progress in FinTech. Whether it’s identifying experts in blockchain, digital payments, or biometric technologies, we are committed to connecting businesses with professionals who can help shape the future of payments. Explore more about how we support the FinTech industry and its leading innovators by contacting us. Let us help you find the talent or the opportunities to be a part of this exciting journey in payments technology.
