Fintech is a booming industry that’s on everyone’s mind, especially investors. According to CB Insights, the space has raised $13.4 billion in the first quarter of 2021. Meanwhile, San Francisco-based stock trading app Robinhood recently filed for IPO and demand for shares has some believing the company’s valuation could approach $40 billion.
The explosion of fintech companies and startups isn’t surprising. As the tech savvy millennial generation has aged, banking and financial options evolved, too, and once rare perks like mobile banking became standard, forcing brick-and-mortar institutions to become tech-enabled.
But banks aren’t the only financial institutions that have made tech-driven changes. Entire markets — from digital loans and mobile stock services to e-commerce payment platforms and digital currency exchanges — are rooted in digital financial access.
Payments companies continue to be some of the most highly valued businesses in fintech. They had notable exits in 2019, including Visa’s pending $5.3 billion acquisition of Plaid and the IPO of Bill.com, a $4 billion (market value) business-to-business payment processor that has doubled in value since it went public in December 2019. Last year, payments startups attracted a gusher of funding, taking in $15 billion globally, a 20% jump over 2018 and more than one quarter of all fintech funding, according to Accenture.
Nine payments companies made our Fintech 50 list this year. They range from a San Francisco startup that lets businesses keep a greater share of the processing fees that merchants pay to a Boston venture that provides restaurants with credit card readers, reservation software and loans of up to $250,000.
Here are the payments companies that made the Forbes Fintech 50 in 2022:
TOP FINTECH COMPANIES
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Small businesses have traditionally had to use different vendors to process credit card transactions in-store and online, and a separate tool if they want to analyze their sales.
Fattmerchant for example bundles these services into one product for a monthly subscription rate that it says ends up costing users 30% to 40% less than traditional processors’ per-transaction charges.