Europe can be described as an enticing FinTech nerve centre. In particular, a progressive regulatory environment has made Europe an attractive ecosystem to be part of. KPMG has highlighted how the regulatory landscape is shifting. Equally intriguing is McKinsey’s look at agile businesses.
Today, legacy banking systems are said to be four decades behind the times. EY asserts that banks face major competition from rivals who are actively hiring FinTechs to discover ways to leap ahead.
It is fascinating to consider what is coming down the line. Within two years, e-wallets are predicted to handle close to 50% of e-commerce transactions and over 25% of the point-of-sale (POS) market. Innovation surrounds us in the sector with eCOMM Merchant Solutions launching Ireland’s first instantaneous merchant settlements, a major step forward in the FinTech-friendly country.
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SubscribeMobile is rated as holding the keys to the future of payments. It was heartening that Deloitte said 91% of the Irish carry a smartphone. Amazingly, the Capgemini World Payments Report 2018 found that payment apps and e-wallets accounted for 29.7 billion cash-free transactions.
In the midst of all the FinTech noise, a true story of success emerges of two payments giants that recently joined forces – PFS and EML. A combined force in Europe, The Middle East, North America and Australia, the buck truly stops there.
Lee Britton (pictured) , CCO said it best, “PFS EML is the FinTechs’ FinTech, but unlike most FinTechs, we are profitable, with blistering growth – even now in a COVID world. How many US, Australian, UK or Irish FinTechs can say the same? Payments Issuer, Processor and Programme Manager, not all talk – truly the home of one-stop-shop.”
There were several reasons the acquisition of Prepaid Financial Services made sense.
- Achieving dual regulation in the United Kingdom and Ireland to operate across Europe in this post-Brexit world.
- An end-to-end technology suite operating in a complex environment. Issuing, processing, programme management, customer services and technology provider all achieved in-house.
- Taking the lead in multi-currency. One of the few providers of 18 currencies on one payment card with a choice of 23 currencies overall.
- A consumer credit license in the UK that they are excited to have attained from the regulator.
- Agility due to a technology advantage and the size of the company at 200 employees.
- Diverse FinTech payment offerings. IBAN and current account solutions allowing SEPA credit transfers, direct debits, faster payments and standing orders.
- A flexible business model means responding faster than larger operators in the space. Looking forward, an almost entirely cash-free world is closer than we can imagine. There is no doubt that FinTech will also embrace a bionic future with a perfect synergy between people and technology. Explore the future of smart payments today here.
