The impact of fintech on payment

Abstract

This paper examines the impact of fintech on the payment industry and whether fintech-based payment methods will surpass traditional methods. The research findings suggest that fintech impacting the payment processing, efficiency, data analytics and digital payment. Financial technologies impacting the industry by offering lower cost, innovative, and faster payment services but possesses challenges such as security and privacy issues that need to be addressed. Collaboration between traditional financial institutions and fintech companies is crucial for future growth and innovation, to access to existing network, customer data and building brand. Regulatory compliance and integration challenges must also be overcome. Fintech has advantages in technology capabilities, agility, business model and innovation but faces barriers to adoption, including trust, network effects, and integration complexity. Traditional payment methods such as credit and debit card have reliability, familiarity, large network and are globally excepted, requiring fintech to offer better convenience, security, and lower costs to attract customers. Fintech has introduced new methods like mobile payments and digital wallets, enhancing convenience and security with advanced technologies such as encryption and biometric authentication. Comparing the two types of payment methods. Fintech mobile payment services offer faster, innovative solutions, leveraging technology and data analytics. Factors like accessibility, security, and trust that traditional payment methods have influence consumer choices. While the future is uncertain, traditional payment methods are likely to coexist with fintech-based options in the payment market. Financial technology playing a crucial role in driving innovation and growth in the industry.