Ken Research Pvt Ltd.

Rising Digital Connectivity and Cheaper FinTech Services to Drive the US FinTech Market: Ken Research

Press Release   •   Nov 02, 2016 12:21 IST

Digital payment segment (consisting of digital commerce, mobile wallets and P2P money transfers) was by far the most revenue generating segment that saw maximum customer interest and participation. The segment was majorly driven by the overwhelming sales of e-commerce market in the country. PayPal, Authorize.Net, Stripe and Square were the major payment gateways used by online retail merchants for the purpose of receiving online payments. Apple Pay, Android Pay, Samsung Pay and PayPal wallet were the most used mobile wallets used by customers for making online and in-store payments in the US. Advanced payment security, faster checkout, loyalty rewards and customer ease have been the major factors driving the mobile wallets market in the country. However, Delay in adoption of the required infrastructure such as NFC terminal by retail merchants have prevented mobile wallets from achieving mainstream adoption. Dwolla, Venmo and Chase QuickPay were the pioneers in the space of P2P money transfers. P2P transfer systems have become increasingly prudent to the customers in the US due to absence of a common network for all financial institutions. Peer-to-peer payment apps have made it highly convenient for customer transfer money and their services usually are accompanied with very nominal charges or even free of cost.

According to Ken Research Analyst Robo Advisors, sub-segment of personal finance sector has grown stupendously during the past few years from 2010 to 2015. Technologies such as the big data, machine learning and others have attracted considerable investment and attention and have allowed robo advisory space to flourish. These firms leverage algorithms and client information to develop preset portfolio distribution and suggestions for investments particular to the individual clients. The advisors can be accessed via rich digital user interface and at very low fees. The robo advisors offer higher transparency as compared to the traditional investors and hence attract more investments. Major players in the market include Vanguard, Charles Schwab Intelligence Portfolio, Betterment, Personal Capital and Wealthfront among others.

The market for business finance was almost entirely driven by business lending companies which raised funds to startups from several industries from both accredited and non-accredited investors. Several business lending companies have come in the last five years which approve funds to applicants within no time. Funding Circle, On Deck, Kabbage, CAN Capital and Lending Club are some of the major companies operating in this space amongst others. FinTech companies allowing crowdfunding started off since 2012 and were almost a billion dollar industry by 2015. EquityNet, Fundable, Angel List and Crowdfunder are some of the key companies that have the first mover advantage in this space. Business finance market has also grown at a rapid pace in the last five years during the period 2010-2015.

According to the research report, the US FinTech is anticipated to grow at a rapid pace between 2016 and 2020 to USD 8.0 trillion in 2020. P2P money transfer and robo advisor sectors are likely to emerge as the largest contributor to the same.

“Evolution of new tech-savvy startups that have been able to perform things better, faster and in a cheaper way than conventional financial institutions has redefined traditional businesses such as lending, payments and investments. The skyrocketing growth of the industry has created numerous opportunities for every stakeholder of the FinTech ecosystem.”, according to the Research Analyst, Ken Research.

Ken Research announced its latest publication on “US FinTech Market Forecast to 2020 – Mobile Payments and Robo Advisors to Shape Future Growth” which provides a comprehensive analysis of the FinTech market in the US and covers market size and segmentation of overall FinTech market by business models. The report covers the further segmentations of different spaces such as Digital Commerce, Personal Finance and Business Finance into sub segments based on the business models. The sub segments (US Digital Commerce Market, US Mobile Wallets Market, US P2P Money Transfers Market, US P2P Lending Market, US Equity Crowdfunding Market, US Robo Advisors Market and US Business Lending Market) are then considered separately and analysis on them has been done individually. The report covers detailed profiles of leading players in the different sub segments along with the share of major players in the market. The potential and future outlook has been individually discussed for the US Digital Commerce Market, US Mobile Wallets Market, US P2P Money Transfers Market, US P2P Lending Market, US Equity Crowdfunding Market, US Robo Advisors Market and US Business Lending Market and also for the overall FinTech market. The report provides detailed analysis of segments, trends & developments, growth drivers and major restraints and challenges within the industry. The report also serves as a benchmark for existing players and for new players who wish to capitalize on the market potential and investors who are looking forward to venture into the FinTech market in the US.

Key Topics Covered in the Report:

  • US FinTech Market Introduction and Size by Transaction Value, 2010-2015
  • Investment Environment for FinTech in the US, 2010-2015
  • Growth Drivers, Trends and Developments in US FinTech Market
  • US Digital Payment Market Introduction and Size by Transaction Value, 2010-2015
  • US Digital Payment Market Segmentation
  • oBy Digital Commerce, P2P Money Transfers or Mobile Wallets, 2010-2015
  • US Digital Commerce Market
  • oUS Digital Commerce Market Introduction and Size, 2010-2015
  • oCompany Profiles of Major Players in US Digital Commerce Market
  • oMarket Share of Major Players inUS Digital Commerce Market
  • oFuture Outlook and Predictions for US Digital Commerce Market, 2016-2020
  • US Mobile Payment Market
  • oUS Mobile Wallet Market Introduction and Size, 2010-2015
  • oUS P2P Money Transfer Market Introduction and Size, 2010-2015
  • oCompany Profiles of Major Players in US Mobile Payments Market
  • oFuture Outlook and Predictions for US Mobile Payments Market, 2016-2020
  • US Consumer Finance Market Segmentation
  • oBy P2P Lending or Robo Advisors, 2010-2015
  • US P2P Lending Market
  • oP2P Lending Market Introduction and Size, 2010-2015
  • oCompany Profiles of Major Players in US P2P Lending Market
  • oMarket Share of Major Players in US P2P Lending Market
  • oFuture Outlook and Predictions for US P2P Lending Market, 2016-2020
  • US Robo Advisors Market
  • oRobo Advisors Market Introduction and Size, 2010-2015
  • oCompany Profiles of Major Players in US Robo Advisors Market
  • oMarket Share of Major Players inUS Robo Advisors Market
  • oCost Analysis of Major Players in US Robo Advisor Market
  • oFuture Outlook and Predictions for US Robo Advisors Market, 2016-2020
  • US Business Finance Market Segmentation
  • oBy Business Lending or Robo Advisors, 2010-2015
  • US Business Lending Market
  • oBusiness Lending Market Introduction and Size, 2010-2015
  • oCompany Profiles of Major Players in US Business Lending Market
  • oMarket Share of Major Players inUS Business Lending Market
  • oFuture Outlook and Predictions for US Business Lending Market, 2016-2020
  • US Equity Crowdfunding Market
  • oEquity Crowdfunding Market Introduction and Size, 2010-2015
  • oCompany Profiles of Major Players in US Equity Crowdfunding Market
  • oMarket Share of Major Players inUS Equity Crowdfunding Market
  • oFuture Outlook and Predictions for US Equity Crowdfunding Market, 2016-2020
  • US FinTech Market Future Outlook and Projections, 2016-2020
  • Impact of FinTech on Banks
  • Issues and Challenges in US FinTech Market
  • Government Rules and Regulations in US FinTech Market
  • Analyst Recommendations
  • Macro Economic Factors impacting US FinTech Market, 2010-2020

The report titled "US FinTech Market Forecast to 2020 - Mobile Payments and Robo Advisors to Shape Future Growth" provides a comprehensive analysis of the FinTech market in the US and covers market size and segmentation of overall FinTech market by business models.