Fintech
The Fintech-as-a-Service market is expected to grow at a CAGR of 16%, targeting $175.9 billion by 2034, Fact.MR – NORTHEAST
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Press release
Increasing digitalization in BFSI sector pushes Fintech-as-a-Service market to greater heights: Fact.MR report
Thursday 16 May 2024, 09:58 CDTSonsonized: Advertising content
Increasing digitalization in BFSI sector pushes Fintech-as-a-Service market to greater heights: Fact.MR report
ROCKVILLE, MD, UNITED STATES, May 16, 2024 /EINPresswire.com/ — The rapid digitalization of financial transactions allows customers to improve the experience through shorter processing times. This updated study from Fact.MR places the global fintech-as-a-service (FaaS) market. to a value of $363.3 billion in 2024 and is expected to increase at a CAGR of 16% through 2034.
Increasing digitalisation in the BFSI sector is an important factor driving the growth of the fintech-as-a-service market. Digital platforms allow users to communicate with financial and other service providers via an online or mobile channel as part of their daily operations. The rise of cloud computing technology has transformed fintech into a service business, providing greater operational flexibility and scalability. Cloud computing allows fintech companies to access virtualized resources and services delivered over the Internet, eliminating the need for local infrastructure. As a result, this element is accelerating the expansion of the fintech-as-a-service market.
In recent years, the FaaS market has seen a significant increase in the adoption of digital banking and payments. This trend is linked to the remarkable convenience and accessibility that digital solutions offer users. Online banking, mobile payment apps and contactless payments were needed to ensure seamless financial transactions by eliminating physical interactions. This increased reliance on digital solutions during the COVID-19 pandemic has spurred demand for online transactions as the preferred option for banking and payments even after the crisis.
Key points of the market study
The global FaaS market is expected to reach a size of $1,602.7 billion by 2034. The North American market is expected to expand at a CAGR of 16.2% through 2034. East Asia is expected to hold a 23.1% market share by 2034.
North America is expected to account for a market share of 24.3% by 2034. The payments segment is expected to expand at a CAGR of 15.5% from 2024 to 2034. The Asia market is expected to Eastern will expand at a CAGR of 16.4% through 2034.
“The expansion of the fintech-as-a-service market is driven by the adoption of artificial intelligence, venture capital investments and supporting government initiatives. Regulatory complexities and data security and privacy concerns need to be addressed efficiently,” says a Fact.MR analyst.
Major players in the fintech-as-a-service space are PayPal Holdings Inc., Block Inc., Mastercard Incorporated, Envestnet Inc., Braintree, Upstart Holdings Inc., Solid Financial Technologies Inc. and Railsbank Technology Ltd.
The main providers of fintech-as-a-service solutions are PayPal Holdings Inc., Block Inc., Mastercard Incorporated, Envestnet Inc. and Braintree.
In 2023, Rapyd and Belvo formed a strategic alliance. This collaboration combines Rapyd’s extensive international payments infrastructure with Belvo’s extensive knowledge and expertise in Open Banking, resulting in a powerful synergy that creates new business prospects across the region.
In 2023, Block launched Tap To Pay for Android. The Tap To Pay feature allows merchants to accept payments directly from their phones, eliminating the need for additional hardware.
In 2023, Fiserv and Equifax announced their alliance. Fiserv and Equifax are jointly launching commercial products that use new analytics to improve enterprise authentication, accelerate account acquisition and improve risk assessment.
In 2023, Mastercard purchased Baffin Bay Networks. This strategic acquisition helps Mastercard enhance its capabilities to assist businesses in addressing the evolving threat landscape of cyber attacks.
Overcoming Obstacles: Addressing Regulatory, Cybersecurity, and Trust Challenges in the Fintech Top of Form Landscape
Navigating complex laws and regulations in different countries and regions within the same country represents a significant regulatory challenge for fintech companies. Additionally, cybersecurity concerns loom large as financial services remain a prime target for hackers, with data breaches resulting in serious consequences. Integrating new fintech solutions with existing systems presents technology integration challenges, which are often complex and time-consuming.
Another barrier to growth is a lack of consumer trust in new and unproven fintech companies, slowing their adoption rates. Furthermore, the high cost of innovation and risk of failure may dissuade some companies from fully embracing fintech solutions. In the context of the increasing digitalisation of financial services, consumer concerns regarding security and privacy persist.
In the United States, trends in the Fintech-as-a-service market include the rapid digitization of financial services and the transition to online and mobile banking. The expansion of e-commerce platforms and demand for seamless and unified payment solutions have also fueled the growth of the market. Furthermore, the favorable regulatory landscape in the United States and technological advancements such as blockchain and artificial intelligence are bringing great benefits to market players. However, data security and privacy challenges remain significant obstacles that solution providers are actively addressing.
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