This year very well may be one of the biggest years for fintech, with dozens of fintech companies on the brink of achieving “unicorn” status – that is, reaching a £1 billion valuation.
But even apart from the up-and-comers in the fintech space, there are plenty of tried-and-true fintech companies that have made businesses’ and consumers’ lives easier – including staples like PayPal (PYPL – Get Report) or Apple Pay (AAPL – Get Report) . And, according to TechCrunch, some 40 fintech companies are on the verge of reaching “unicorn” level with a £1 billion valuation – having raised $100 million last year in funding.
What Is Fintech?
Fintech is the common term used to refer to financial technology – which is an innovating industry that provides financial services with software, cloud or other technology. Fintech has both consumer and business applications, and ranges from cryptocurrency to mobile payments to health services.
Fintech has taken off in recent years, with U.S. fintech companies garnering some $12.4 billion in funding – up 43% from 2017. Additionally, the global mobile payments industry is reportedly set to surpass $1 trillion in 2019.
With both business-to-business and business-to-client applications, fintech has disrupted traditional industries, servicing an estimated near 2 billion people worldwide without traditional bank accounts. In addition, fintech has found applications in emerging technologies like artificial intelligence and blockchain.
As of 2019, there are 39 VC-backed fintech companies worth $1 billion – with a combined valuation of $147.4 billion, according to CB Insights.