The burgeoning FinTech industry is increasingly looking for new ways to enable a seamless financial experience. This assertion was evident all through 2019, as startups and established enterprises introduced us to some of the mind-boggling FinTech projects yet. And remarkably, many of these solutions have an element of blockchain and crypto technology, which indicates that cryptocurrency is still very much relevant in the FinTech space.
Likewise, there is reason to believe that 2020 would follow in 2019’s footsteps by birthing crypto projects that might evoke new paradigms. However, based on this assertion alone, it is a tad difficult to believe that investing in the crypto FinTech space is the right business move in the year 2020. The only way to ascertain the validity of this projection is to analyze facts and stats, which is the main purpose of this article.
The Efficacy of The Crypto FinTech
Crypto FinTech became a concept the moment bitcoin announced itself as a viable alternative to traditional banking systems and currencies. The blockchain network allows cross-border payment with little or no fuss and provides autonomy that is lacking in conventional payment systems. Following bitcoin’s emergence, more crypto projects have entered the fray, as crypto technology continues to show a remarkable innovative edge at circumventing recurring issues plaguing conventional methods of payment.
While coming to terms with crypto’s disruptive nature, enterprises moved quickly to capitalize on blockchain revolution technology, the underlying technology propelling the crypto narrative. A PWC report revealed that 77% of incumbent financial enterprises had plans to incorporate blockchain technology as part of their business strategy in 2020. We have seen glimpses of this in 2019 when JP Morgan Chase introduced its plan to create a coin.
That said, it is also important to note that it is not only financial institutions that are aware of the innovative and financial benefits of adopting crypto. Recall how Facebook somewhat kicked off new trends, even as more social network giants increasingly infiltrated the financial tech industry. One thing is clear, the crypto FinTech space will continue to lead the banking revolution as long as digital technology remains the core agenda of the tech world. And as an investor, the prudent thing to do is to add a viable crypto FinTech project to your portfolio to capitalize on the crypto FinTech craze sweeping across the tech space.
However, this is easier said than done. The number of crypto FinTech projects finding their way into crowdfunding platforms is on the rise. Hence, it has become more difficult to filter out substandard platforms. In light of this, I have decided to list some of the promising FinTech startups implementing crypto technology.
Wolfs Groups is an established consulting firm that recently diversified its business model when it acquired a British company regulated by FCI law, Ferpay - it is a FinTech platform that looks to provide payment and remittance solutions. The platform has partnered with Visa to introduce multicurrency cards and payment gateways to the crypto market. Also, Ferpay would distribute bitcoin ATMs across various regions of the world to enable an easier and faster way of accessing crypto. Moreover, Wolfs Group also functions as venture capital, and it would explore more opportunities in the FinTech industry as well as the real estate industry.
PundiX is a blockchain revolution solution that looks to capitalize on crypto technology to facilitate cashless and quick payments. Therefore, the startup has introduced various products that align with this goal, with the XPoS serving as its core offering. The XPoS functions very much like the conventional PoS terminal, albeit with a focus on crypto payment. In other words, retailers who are keen on accepting crypto can use this device to receive crypto payments from buyers who have the XWallet. Besides, the XPoS tracks transactions, prints receipts, and monitors inventories.
ECOMI is another crypto project proposing FinTech solutions. Three core products would make up the ECOMI ecosystem. The first is a hardware wallet that the startup claims would be as thick and as long as a typical credit card. Also, users would have no reason to connect the hardware wallet to an online device via a USB cable, as it would come with wireless connectivity protocols. Another product is the ECOMI Collect, which allows users to trade licensed digital collectibles. Then there is the ECOMI vault, a cryptographically-protected decentralized storage solution where users can store sensitive information.
Azbit is another startup trying to find its footings in the FinTech niche. Unlike the other companies on this list, Azbit is taking on perhaps all the sectors of the FinTech industry. Thus, it runs a business model that is looking to implement a wallet solution, a p2p lending platform, an electronic payment network, a blockchain, and a trading product.
Investing in crypto FinTech in 2020 is a no brainer, not just because it is popular to do so. Financial institutions and enterprises are not joining the crypto bandwagon for the fun of it. Instead, they are aware that the future economy would revolve around a balanced mix of digital technology and financial services. And judging by crypto’s unique ability to combine these factors efficiently, it is clear as daylight that crypto FinTech is a viable investment opportunity.
We advise that you do not solely base your investment decision on the author’s recommendations. Ensure that you embark on extensive research before choosing to invest in any of the startups listed in this article.
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