With the advent of fintech and neo-banking, many problems and pain points that have long plagued the traditional financial system have been alleviated. Accessing personal finance has never been easier. Whether applying for a loan, budgeting or cashing a cheque, much of a person’s financial life is conveyed digitally.
This has meant great growth for the industry. Fintechs have received billions in funding from investors and VCs looking for the next “unicorn”, looking to repeat the explosive success of companies that Block Inc (NYSE:SQ) or PayPal Holdings Inc (NASDAQ:PYPL).
This growth is likely to be driven by innovative companies that continue to find problems and solve them, helping with problems experienced by ordinary people. One of these major problems is payment for those in the service industry. Payment can be inconsistent and complicated due to splitting tips – often making up a lion’s share of their income.
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Beyond a mere inconvenience, this can lead to major problems, such as cash shortages while waiting for a paycheck, leading a worker to rely on a predatory loan. Getting paid daily can be life-changing for many in the industry. Waiting for payment for work already done can in a way be seen as giving the employer an interest-free loan.
This is one reason why fintech companies XTM Inc. (OTCQB:XTMIF) (CSE:PAID) has seen a lot of success and rapid growth recently. The company, founded in online cloud banking, has a flagship product called Today Financial, which makes it easy for businesses to pay their employees every day, including the tips collected on the same day.
Today, Payments offers a portal that allows businesses to easily manage payments and tips across multiple locations. It includes tip calculation that removes human error and costs. For employees, Today offers an app called Today Financial, which allows workers to keep track of their finances, spend their money easily and enjoy various benefits such as cashback rewards, purchase protection and more.
XTM started in Canada, where it has a large market share, and is now expanding into the US market – about 11 times its size. The company believes that its solid business plan, great product and attention to user needs will allow it to thrive in the US.
CEO Marilyn Schaffer was recently interviewed by Benzinga about her company. Watch the video here:
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Featured image by Jonas Leupe on Unsplash