What is Fintech? How did it come about?
Fintech which is the abbreviation for “Financial Technology”, is the result of blending financial services and technology.
Fintech is aimed to make financial services faster, easier and more efficient.
With the development of technology the rates of mobile usage, global internet access and the acceleration of transactions have increased.
Fintech is rapidly changing the classic financial system by making it easier to save, transfer money and invest online or via a mobile device without wasting time.
Cryptocurrencies are one of the important factors in the rapid growth of Fintech popularity. The derivation of cryptocurrencies and money transfers changes in the way of monetary transactions and the studies of banks that want to be involved in these innovations.
Financial technologies are used to develop specialized software and algorithms used in computers and smartphones, to help business owners and consumers manage their financial transactions and processes better.
What are the Effects of Fintech on Finance Sector?
It not only takes place in the lives of consumers but also provides trends and job opportunities in the field of employment and appears in many different sectors. One of the most important sectors that it has affected, is the food industry. Customers in this field prefer Fintech methods that offer solutions and results that have accelerated compared to the old methods.
There are many different topics such as personal financial management, smart payment technologies, Blockchain technology, cloud-based software among the solutions offered to their users by companies producing projects in the field of Fintech.
Fintech in Food Industry.
Food businesses were already starting to go digital when the pandemic pressed pause. Customers now expect more mobile and virtual experiences.
Nowadays you see UK’s restaurants and takeaways offering a Mobile Order & Pay program to enable customers to preorder and avoid long queues and wait times.
As in many sectors, the food industry is also looking to benefit from Fintech. The world is changing rapidly, and you must keep up with this new world and emerging technologies, products, startups and trends so you won’t be left behind as the industry around you changes. Fintech enables you to have an opportunity to build a competitive advantage by proactive cooperation with leading businesses in the payments landscape.
The food industry especially small food businesses may have difficulty accessing banks for financing. Now the growth of the sharing economy through Fintech makes it possible for small businesses to have access to credit if they need.
Due to the research done in Indonesia, knowledge, safety perceptions, performance expectations, social influence, facilitation conditions and price values affect Fintech adoption by small food business owners. Moreover, this adoption influences small food business stability.
While the USA takes the lead in this field, Europe also is rapidly moving towards becoming an effective force in the Fintech startup world. These Fintech trends spreading across Europe will form the basis for a cashless economy and the new business opportunities it will bring:
Blockchain technology is being adopted at a large scale in the financial industry, primarily due to its capability to securely store transaction records and other sensitive data. It can be thought of as an online digital ledger where users can initiate a quick transaction over the network without connecting to a center and then confirm this transaction.
The majority of big banks are already investing in this technology to avoid losing revenue against startups in the future. Because it is thought that this technology will affect the demand for candidates.
Blockchain technology was predicted to be popular in the financial sector. This technology increases the current need for customer relationship managers, asset management consultants, finance and stock analysts as well as triggering the need for accounting and tax professionals with financial policy experts.
Peer-to-Peer (P2P) lending
peer to peer payment which has become a dominant alternative financing route for individuals and small businesses with little or poor credit history are beginning to integrate with blockchain-based smart contracts, contributing to the evolution of decentralized finance.
These Fintech products are strongly changing the way lending works and therefore challenging the dominance of formal banking and financial institutions. They often offer their services online and attempt to operate with lower overhead and provide their services more cheaply than traditional financial institutions.
The resulting networks facilitate trustless transactions that lower costs and save time by removing intermediaries.
As a result, P2P payment is a breakthrough technology that makes payment faster, secure and hassle-free. It is being leveraged across food businesses by food producers looking for loans and buyers, processors looking to pay their suppliers.
Robo-advisors is the system that manages your stocks and conversions on your behalf, in other words, provides automatic investment services. When using these robots, investment proposals are automated through various algorithms to reduce cost and increase accessibility.
Robo-advisors are thought to affect the employment area as well. Software engineers, mobile front-end and back-end developers and behavioural research specialists are considered at the forefront of the areas to be affected.
In the past, payments were limited to cash, debit or credit cards. But with the development of smartphones, Payments today can be made simply by taping a smartphone over a terminal reader.
Since the outbreak of the COVID-19 pandemic, consumers have increased the use of mobile and contactless payment methods all over the world.
Mobile Payment applications and gateways are the most prevalent uses of Fintech. Such applications allow users to carry out banking activities without physically visiting a bank. Undoubtedly these ways of payments are viewed as the most hygienic form of payment for food industries since no physical contact would be required for a transaction to complete. So you can quickly, simply and securely pay for your daily meals and drinks.
Here are the most popular examples of how payment technologies are changing the way we purchase food:
Pay at the table
For paying by QR code, a barcode reader that can scan QR codes or tablet and a smartphone with an inbuilt camera are needed.
Customers simply scan a QR code at their table to identify where they’re sitting and then browse their menu, place their order and pay for their meal, all done from the convenience and safety of their own device.
NFC payments are contactless and wireless payments that use near-field communication (NFC) technology to exchange data between readers and payment devices like Apple Pay and Google Pay E-Wallets in smartphones and smartwatches, or tap-to-pay credit and debit cards.
Google Pay and Apple Pay
You can use Apple Pay and Google Pay in stores, in apps and on websites while ordering your food online. Instead of wasting time with old methods, you can use Apple Pay and Google Pay for a quick and easy payment.
Paying with a smartphone is actually more secure and more efficient than using a credit card. As long as you have a card in your Apple or Google Pay wallet, you can order takeout from a new app without having to type in your credit card number.
This technology was being promoted in China. This idea which thought to be used soon across the UK is simple; when a consumer is at the POS, a scan of their face serves as their payment method and authorization. In other words, a consumer walks up to the POS, allows the POS to take their picture, and then the transaction is complete, at least in theory.
As a result, Pay by Face is a customer-centric, seamless and secure digital payment ecosystem for a safer, faster and more convenient shopping experience.
Weetech team as a pioneer in new technologies can help you to capitalise on these powerful trends and opportunities by enabling secure acceptance of all payment