The top 10 Fintech companies disrupting financial servicesAs the Fintech industry continues to evolve and disrupt financial services, we explore the top 10 companies in the space
Fintech companies have been disrupting many areas of financial services, including banking, online transactions and accountancy. The mobile nature of the Fintech sector has eradicated the limits previously placed by physical locations, allowing users to manage finances from anywhere.
With this in mind, here is our list of the top 10 Fintech companies currently making waves in the financial services space.
Regarded by some to be among the first Fintech companies, Paypal, founded in 1998, is a platform that allows users to connect their bank account to a secure payment portal. The requirement of the user’s email address and password to use the service provides added security when making payments online.
Known to be utilised by vendors mainly doing business online to receive payments from customers, especially during lockdown in the past year, Paypal is also commonly used as a place to store money pools, which multiple users can contribute to.
Established in 2015, UK-based Monzo is a digital-only bank that offers users a current account with no monthly fees, as well as a pre-paid Mastercard debit card. The app is one of many challenger banks that looks to improve financial services by offering more intuitive experiences wherever the user is, but what sets Monzo apart is its ‘Salary Sorter’, which allows customers to divide spending, bills and savings into one location.
Monzo also provides users with ‘Savings Pots’, which act as its equivalent of savings accounts. These allow for change to be rounded up to the nearest pound, as well as offering automated savings.
Square is an app that allows businesses of all sizes to accept card payments. Beginning with a card reader when it was founded in 2009, Square also allows for transactions between people using its Cash App.
Earlier this month, Sqaure, headed up by Twitter CEO Jack Dorsey, announced the launch of an in-house bank, established in order to “operate more nimbly” in an increasingly noisy market. Other otable recent ventures undertaken by the Fintech include establishing a presence in the Falkland Islands.
4. Starling Bank
Another digital-first challenger bank on this list, Starling Bank offers four main accounts: Personal, Joint, Business and Euro. As well as making online payments and transferring money domestically without needing to pay fees, customers can also apply for overdrafts in-app, and receive real-time notifications for spending and income.
Founded in 2014, the Fintech’s business account offers a business marketplace, which provides guidance on accounting, payments and internal communications, offering integrations with apps such as Quickbooks and Slack.
Stripe is a payments processing software for businesses. The app allows businesses to view income and manage their financial operations online, offering an application stack for managing revenue, preventing fraud and removing regulatory complexity.
The Fintech, founded in 2010, also helps companies to reduce environmental impact through its carbon removal advisory app Stripe Climate.
Online shopping platform Klarna came to prominence when it became the largest European Fintech company, and the fourth largest worldwide in September last year. The Sweden-based startup was founded in 2005, and offers direct payments, pay after delivery options and instalment plans to consumers, in an aim to provide a smarter alternative to credit cards.
Businesses can leverage Klarna’s shop directory and marketing channels to ensure better customer retention, with the company offering integrations with Salesforce and other customer-facing partners.
Ripple is a payment solution provider that became the fourth largest Fintech globally in November 2020, upon reaching a $10 billion valuation achieved by Klarna a few months previously. The company’s network, RippleNet, spans over 300 providers across more than 40 countries, and allows for cross-border transactions for financial institutions and businesses.
Activity over RippleNet is secured by blockchain, and includes capabilities for cryptocurrency transactions, with the ledger employing native currency XRP. Ripple was established in 2012.
Business-focused online bank Tide offers three account plans: free, plus and cashback. Claiming to complete business account in minutes, the platform allows small businesses and freelancers to personalise visibility of transactions and create multiple accounts.
Established in 2015, Tide, like Starling Bank, offers real-time banking notifications, and includes biometric authentication from the application stage.
Exchange platform WorldRemit has been disrupting the remittance space since its foundation in 2010. Individuals can use the WorldRemit app to send money across borders, with bank transfer, cash pickup and mobile money options currently available.
The Fintech company recognises over 70 Fiat currencies, and spans over 130 countries across the world.
Accounting software provider Xero is aimed at small businesses, allowing them to send invoices, create expense claims and view reports through its mobile app. Users are updated when invoices are accessed by recipients, and visibility of finances is delivered through a month-by-month presentation of income and outcome. Businesses can also facilitate collaboration with bookmakers, accountants and employees on an invitation basis.
Xero, founded in 2006, offers three price plans: Starter, Standard and Premium.