The FinTech Future
PayPal (NASDAQ: PYPL) is a digital payments company that has revolutionized financial service technology to make it more convenient, affordable, and secure for more than 390 million customers and merchants.
They have also simplified the financial lives of many by creating a service that is extremely easy to use, but also reliable. You can easily send, spend, or receive money around the globe with the PayPal app to anyone you want.
The future of payments is going to be digital, and conveniently PayPal is placed in the perfect spot. Cash is becoming the old way to transact throughout the world as we shift to digital payment ecosystems. With PayPal, you can power your small business as they offer a wide range of checkout options, manage the risks of fraudulent transactions, and integrate your business into trusted eCommerce partnered services.
Venmo, a fintech-driven app that allows users to send and receive payments and begin their journey in cryptocurrency, is owned by PayPal. What makes Venmo unique is the social media type of instruments used to make a more interactive experience when transacting. This is best suited for the younger generations as it makes it easier to keep track of your money and expenses.
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Both PayPal and Venmo offer cryptocurrency services because they have seen the rising popularity of these new forms of payments. The best part is that individuals enjoy the same protection and security they are used to with their regular PayPal account.
These applications and updates show that PayPal has continued to stay up-to-date on all developments of new financial technologies. This is the key to maintaining the status of a global fintech leader, recognizing what customers want, and providing it as efficiently as possible.
Growth Advantages and Disadvantages
The growth ahead for the fintech industry is clear, the world will continue to use technologies that are faster, safer, and more reliable. PayPal is setting itself up to be at the forefront of financial service innovations.
However, it’s important to note that PayPal does face some competition, such as Square. PayPal owns Venmo, and Square owns Cash App. Both of these apps are peer-to-peer financial services that offer very similar traits such as being able to invest in cryptocurrencies for as little as $1. However, despite these similarities, there’s very little need for caution as there’s more than enough space for multiple Fintech companies.
PayPal and Square competing could be compared to a duopoly such as Visa and Mastercard since they can operate alongside each other and still benefit from this massive industry. By collectively promoting digital financial services they all benefit from an economy increasingly demanding faster and smarter services which are only accessible from technology-driven companies.
It’s clear PayPal wants to be the best fintech company out of them all, and there’s really nothing stopping them. They have expanded their software products and services portfolio to match all the necessities an individual or small to medium-sized business could ever need. If they can continue to accelerate these avenues of financial services that make day-to-day life easier for hundreds of millions of people worldwide, there’s no doubt the next generation will look at PayPal, or their subsidiaries like Venmo as their first choice.
Overall, the future favors fintech companies over traditional slow financial institutions. The next decade may hold a massive opportunity for faster services, which PayPal is setting itself up to have a monumental role in because they have the resources, the know-how, and the capacity to continue to innovate in the fintech industry for many years to come.
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