In the early 2000s, the tech industry often repeated the phrase, “Every company will be a tech company.” This prediction largely materialized as businesses across sectors adopted technology to stay relevant in a rapidly digitizing world. Now, as we navigate the complexities of a more interconnected digital economy, a new mantra is taking hold:
“Every tech company will be a fintech company.”
This shift reflects a broader evolution in the role of technology, driven by the growing demand for seamless, secure, and accessible financial services. The integration of fintech into businesses of all kinds is transforming the global economy, blurring the lines between traditional industries and financial services.
The Rise of Fintech in Technology Companies
Tech companies, from global giants to startups, are increasingly embedding financial capabilities into their offerings. This shift is motivated by several factors:
- Demand for Digital Financial Services: The rise of e-commerce, online transactions, and cashless payments has made digital financial solutions indispensable.
- Emerging Technologies: Innovations such as blockchain, artificial intelligence, and APIs are enabling secure, efficient, and user-friendly financial platforms.
- Evolving Consumer Expectations: Customers expect speed, personalization, and convenience from their financial interactions, prompting businesses to adapt.
Leading Examples of the Shift
The rise of mobile payment systems is one of the most visible signs of this transformation. Platforms like Apple Pay, Google Wallet, and Samsung Pay have revolutionized transactions, enabling users to pay with their devices. These companies have gone beyond payments, offering financial services like digital wallets, peer-to-peer transfers, and even cryptocurrency trading.
A standout example is Starbucks, which doesn’t operate as a bank but effectively functions like one. Its popular gift card and app-based Scan & Pay feature have amassed an estimated $1.6 billion in outstanding balances—interest-free capital borrowed from its customers, repaid in coffee rather than cash.
Apple: From Tech Giant to Financial Powerhouse
Apple exemplifies how a tech company can transform into a financial player. Over the years, Apple has built a robust suite of financial products:
- 2012: Launch of Apple Wallet, a unified digital wallet for cards, passes, and tickets.
- 2014: Introduction of Apple Pay for seamless digital payments.
- 2015: iPhone Upgrade Program, offering interest-free financing.
- 2017: Apple Cash, enabling peer-to-peer payments.
- 2019: Apple Card, in partnership with Goldman Sachs, offering cashback rewards and advanced security features.
- 2023: Apple Pay Later for interest-free installment payments.
- 2023: High-Yield Savings Accounts with competitive APYs.
Apple has also strategically invested in fintech startups like Credit Kudos and Stripe, further solidifying its position in the financial ecosystem. With its massive cash reserves, Apple wields significant financial power, enabling innovation and expansion in fintech.
Fintech as a Universal Business Strategy
The integration of financial services into non-financial businesses—known as embedded finance—is the key driver of this evolution. Companies across industries are embedding fintech capabilities to enhance customer experiences and unlock new revenue streams.
Why Every Company is Becoming a Fintech Company
- Embedded Finance
Businesses like Amazon, Shopify, and Uber embed financial services directly into their platforms, from payment gateways to lending and insurance, creating frictionless customer journeys. - Changing Customer Expectations
Modern consumers demand convenience and speed. Features like Buy Now, Pay Later (BNPL) and subscription management tools are becoming standard offerings across industries. - Open Banking and APIs
Technologies like APIs and open banking have democratized financial services, enabling businesses of all sizes to integrate banking, payment, and lending functionalities seamlessly. - Supportive Regulation
Frameworks like PSD2 in Europe and Open Banking in the UK encourage innovation while ensuring data security, fostering widespread fintech adoption.
Industries Transforming Through Fintech
The fusion of fintech with traditional industries is reshaping sectors globally:
- Retail: BNPL solutions, loyalty programs, and streamlined checkouts are redefining customer experiences.
- Healthcare: Fintech simplifies medical bill payments and insurance claims while offering innovative financing options.
- Transportation: Ride-hailing platforms provide drivers with instant payouts, insurance, and even microloans.
- Education: EdTech platforms offer tuition financing and micro-scholarships, broadening access to education.
- Real Estate: PropTech integrates fintech to enable digital rent collection, mortgage approvals, and investments.
Challenges Ahead
While the opportunities are immense, businesses must navigate challenges such as:
- Data Privacy and Security: Protecting sensitive financial information is paramount.
- Regulatory Compliance: Adhering to complex and evolving financial regulations requires significant resources.
- Technological Investment: Building the infrastructure to support fintech capabilities is resource-intensive.
Preparing for the Fintech Future
By 2030, fintech will no longer be a vertical; it will be a horizontal force influencing every industry. To thrive, businesses must:
- Adopt a Digital-First Mindset: Embrace technology as a core enabler of business strategy.
- Forge Strategic Partnerships: Collaborate with fintech innovators to integrate advanced solutions.
- Invest in Talent: Build teams with expertise in financial technology and data analytics.
- Focus on Customer-Centric Solutions: Design financial services that address specific consumer needs.
Conclusion
The evolution from every company being a tech company to every company becoming a fintech company reflects the natural progression of the digital age. By embedding financial services into their ecosystems, businesses can enhance customer experiences, improve efficiency, and unlock new growth opportunities.
The question is no longer if your company will embrace fintech but when—and those who act swiftly will define the future of their industries.
About the Author:
Qasim Qazi, the founder of Fintech News Circle, a network of five fintech-focused media platforms covering fintech emerging regions across the globe including:
