Are These Five Frontier Fintech Companies On Your Watch List? – EVO Payments (NASDAQ:EVOP), Fleetcor Technologies (NYSE:FLT)

Frontier fintech is a rapidly growing sector of the financial industry. These new players in the industry offer innovative solutions to traditional financial services, often using cutting-edge technology to provide fast, practical and cost-effective financial solutions.

One of the most important characteristics of frontier fintechs is their focus on customer centricity. In contrast to traditional financial institutions, fintech companies focus on customer needs and strive to offer personalized solutions tailored to individual needs.

For some years, companies such as XTM Inc. XTMIF, Fleetcor Technologies Inc. FLT, Nuvei Corp. NVEI, EVO Payments Inc. EVOPand SoFi Technologies Inc. SOPHIE disrupting traditional financial services with innovative technology and user-centric approaches. They change the way people invest, pay, borrow, insure and manage their finances.

Because of these advantages, the fintech industry is growing at an unprecedented rate, and the impact of these frontier fintechs is being felt as the world becomes increasingly digital. The global fintech technology market was valued at $110.57 billion in 2020 and is projected to reach $698.48 billion by 2030, growing at a compound annual growth rate (CAGR) of 20.3% from 2021 to 2030.

As more people and businesses switch to digital payments, competition in the cross-border fintech industry is growing rapidly. Such competitions are always good news for consumers, players, investors and watchers of the industry.

A look at the Five Frontier Fintechs

XTM, a fintech innovator based in Miami and Toronto, founded in the cloud banking space, appears to be a strategic leader in the sector’s evolution as many expect to see more exciting innovations from the industry.

Established as a leader in on-demand payroll with many major brands, including Marriott International Inc. MAR hotels and Live Nation Entertainment Inc. LIE, the company says it is continuously innovating to support businesses with shift scheduling and call-outs, staff management, expense management, in-app health and financial wellness; and gamified loyalty programs.

But how does XTM stack up against Fleetcor, Nuvei, EVO and SoFi?

Fleetcor:

Fleetcor offers payment solutions that help businesses control, simplify and secure payments for fuel, general debt, tolls and lodging expenses. The company says it simplifies payments by automating, securing, digitizing and controlling transactions for employees and suppliers.

Now way:

Nuvei is a Montreal-based payment technology company. The company operates a platform that connects merchants with more than 470 payment methods, including cryptocurrencies. Nuvei serves retail, gaming, hospitality, digital goods and other industries.

EVO Payments:

EVO Payments is a payment technology company that supports various payment channels, such as in-person or online transactions. The company offers an integrated acquirer and payment processor in over 50 markets and 150 currencies worldwide. For the quarter ended September 30, 2022, EVO Payments reported revenue of $138.7 million.

SoFi:

SoFi is a financial company that offers lending and refinancing of loans, insurance services, asset management, savings and banking products. For 2022, SoFi recorded net income of $1.6 billion.

The XTM advantage:

Overall, XTM’s payment technology platform’s uniqueness gives it a competitive edge over some of its peers. As the company’s industry continues to grow, XTM’s payment solutions have the potential to become a force to be reckoned with. In comparative terms. The company’s real-time, secure and efficient payment system, together with theirs Visa Inc. V and Mastercard Inc. M card integration, can help XTM become the market leader.

The company uses a cloud-based PCI-compliant architecture that enables rapid scaling, multilingual and time zone usage. XTM offers a digital earnings platform for service workers – including hospitality and personal care workers – known as the Today Financial™ App.

The app, which consists of a mobile app and wallet along with a Visa or Mastercard debit card with banking capabilities, is used by thousands of restaurants, lounges and service workers across Canada and the United States, allowing hundreds of thousands of workers to access their earned wages instantly, which gave them more control over the economy.

Furthermore, XTM’s approach can also help businesses by significantly reducing payroll administration time and costs, which can be particularly useful for organizations that have multiple payment points. The company’s services can be a game changer in the catering industry, which has unique payment challenges, such as inconsistent working hours and high cash utilization.

Partnership with Payfare

On March 3, XTM announced that they signed an agreement with Payfare Inc. PAYa leading fintech solution that provides instant payout and digital banking solutions for the concert workforce.

Through this partnership with Payfare, XTM said it will integrate into Payfare’s built-in finance and open API platform for card issuance, digital banking and instant payments. XTM’s proven Earned Wage Access (EWA) solution will leverage Payfare’s relationships and significant economies of scale to rapidly enter and expand its offering across the US market.

According to the company, the integration is underway and XTM expects to start full rollout in Q2 2023. It plans to migrate its current customers from its previous issuing bank and all future banking and processing will be through Payfare.

Featured image by Blake Wisz on Unsplash

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