Fintech revolution in payment methods: Current situation and perspectives

Abstract

Technology and the new digital era are motivating huge changes in all sectors of the economy. In the financial area, the application of technology results in what is known as fintech. Although the combination of finance and technology has been accompanying us for decades, in recent years it has gained increased relevance due to the rapidity with which innovations appear as a result of the democratization of digitalization, that is, the massive and cheap access to new technologies by companies and consumers. The fintech phenomenon encompasses a wide variety of areas, also called verticals, including means of payment, alternative financing, financial advisory, cryptocurrencies, blockchain, insurtech and big data, among others.

This study focuses on the impact of fintech on payment methods, where a real revolution is taking place. The use of cash is declining due to the emergence of new and varied methods such as digital wallets, P2P platforms and other alternatives whose use is less widespread, such as direct carrier billing. The study provides a detailed analysis of these innovations explaining their operation, the main agents and their evolution. Future perspectives are also addressed in order to know what the future holds and the possible implications and adaptations of the changes that are to come, related to blockchain technology, artificial intelligence, the Internet of things or quantum computing.