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The US version of Huabei rose sharply when it came into the market, and the overseas electronic payment circuit became hot

via:博客园     time:2021/2/23 18:17:08     readed:89


Text / Lexie

Source: silicon rabbit race (ID: SV)_ race)

In early February, Robin Hood received a total of $3.4 billion in financing from investors in a week, more than the total amount it has raised since its inception in 2013.

With the increase of people's demand for financial technology, funds are also pouring into this field. In the environment of black swan 2020, the performance of financial technology companies is not bad.

According to financial software company tipalti, there will be 76 new Unicorn companies in the world in 2020, of which 17% will come from financial technology. Meanwhile, according to the data of CrunchBase news as of the end of October last year, the total amount of financing in the field of global financial technology in 2020 is about 26.5 billion US dollars, accounting for 14% of the total global investment.

In 2020, a total of 995 transactions were completed in the field of financial technology in the United States, with a total financing amount of US $17 billion. Compared with us $19.6 billion under the 1709 transactions in 2019, the amount of financing is larger, and most of them are concentrated in the later stage companies.


Pitchbook data also shows that in recent years, the investment allocated to Angel / seed wheel and early stage has decreased, while the investment allocated to later stage has increased.


At present, the hottest investment fields of financial technology include insurance, banking, lending and, of course, electronic payment


Plaid is growing into a strong force in the field of financial technology. Plaid was founded in 2013. Its core product is the API (Application Programming Interface) software in the direction of financial services. It enables the software infrastructure and makes the main financial technology app Our software development team can obtain information and data from financial institutions and smoothly create digital financial products that we love, so that users can easily connect their financial institutions with apps. It is said that at present, one quarter of the people with bank accounts in the United States use plaid.



Another point that Plaid has attracted much attention is that its core technology will also play an important role in defi (decentralized Finance).

At present, plaid's service only involves payment accounts, and it can also be applied to encrypted assets according to the same principle. Plaid is currently working with Dharma, teller finance and other defi start-ups to study how to further this development.

Plaid has so far completed four rounds of financing, with a total financing amount of US $309 million. The investors behind it include Index Ventures, Kleiner Perkins, Goldman Sachs investment partners, spark capital, etc.

Investors such as Allen Miller from oak HC / ft and Sri muppidi from Sierra ventures have a similar attitude. They pay more attention to the development potential of API software company represented by visa's acquisition intention. The popularity of API is not a flash in the pan, but will change the future of software industry.

Confirm: there are risks behind the rapid growth

For a long time, the development speed of financial technology in Europe and the United States is not as fast as that in China. The layout of start-ups and traditional financial industry in this field is relatively late, and this year, this field is also gradually hot.

Affirm has more than 6500 co operation businesses, including WAL-MART, Adidas, Nordstrom and other famous brands. COVID-19's electricity bonus has played a certain role in promoting the development of Affirm. Such as home furnishing, home training, family office supplies and other companies are benefiting from the epidemic, and Affirm has benefited from it.

In fiscal year 2019, confirm's revenue reached US $264.4 million, and this figure reached US $509 million in fiscal year 2020, achieving a 93% growth. At the same time, its loss is also decreasing. In fiscal year 2019, the loss of US $120 million is reduced to US $112 million in 2020.

The number of active users increased from 2.38 million in 2019 to 2.88 million in 2020. In the third quarter of 2020, active users placed an average of 2.2 orders, which also increased compared with the same period in 2019.

At the same time, confirm has sufficient funds. Now it has completed the financing of US $1.5 billion. The latest round took place in September last year. It completed the financing of US $500 million in round g led by GIC and durable Capital Partners LP.

As a result of the epidemic, 50% of the world's shoppers began to use e-payment more, and the major companies in the field of e-payment also benefited from contactless payment and e-commerce dividends last year: PayPal's revenue increased by 22% in the second quarter of 2020; square data shows that in February 2020, only 5.4% of square sellers used cashless transactions, compared with 4.5% in April In June, the figure rose to 23.2%.

Confirm is competing not only with payment giants such as PayPal and square, but also with other industry giants who want to get a piece of the electronic payment track and are preparing to enter the game.

Every company will become a financial technology company

Just at the beginning of January, Wal Mart issued a statement on its website, announcing that it has reached a strategic partnership with financial investment company rabbit capital to establish a new financial technology start-up company to create innovative and cost-effective financial products for customers and employees. Although the specific details have not been disclosed, Wal Mart has already begun to test financial services.

There is no doubt that the battle for payment has begun, and Amazon is one of the competitors.

From the launch of pay with Amazon in 2007, to the acquisition of gopago, a mobile payment start-up, in 2013, to the access to WorldPay, the world's largest payment operator in 2019, to the development of Amazon go's unmanned store and possible sweeper payment in the future, Amazon has made a lot of efforts in payment in the past few years.

It's not just payment. Amazon has taken actions in small and medium-sized enterprise loans, cash and insurance. It is also actively laying out its financial infrastructure. What's its intention? Through financial technology services, Amazon can get more businesses and users, improve the consumer experience, and expand the overall ecology of Amazon.


According to the survey, only 28% of the millennials and generation Z trust the financial services of banks. At the same time, more than 50% of the people in the United States have no deposits. Traditional financial institutions are not pleasant. The emergence and growth of financial technology start-ups are not fast enough. What we lack before is not consumer demand, but enabling infrastructure.


Zach Perret, founder and CEO of plaid, also said in an interview with techcrunch that software is swallowing the world, financial service companies must arm themselves with technology, and each company will eventually become a financial technology company. There are still vacancies in 2C field, but there is endless potential for infrastructure enabling financial technology like plaid.

Amazon is waging a war against financial institutions to break them up one by one. At the same time, we also see the transformation of financial technology start-ups from small and refined to large and complete.

From small and refined to large and complete

Sofi, which provides users with loans and financial services, is currently valued at US $8.65 billion. At the beginning of this year, it was reported that it was ready to go public through spac.

Chime, a digital bank, has achieved a valuation of US $14.5 billion after financing US $485 million in September last year, surpassing Robin Hood and becoming the most valuable financial technology company in the US consumer sector.

Although these apps have their own advantages, the result is that users want to manage their own finance, and finally have to download 10 apps from their mobile phones Multiple software, complex and cumbersome; for these companies, as more and more players enter the financial technology track, only relying on a single core product can not win, so we see more and more start-ups start to expand their product lines and strive to become a collection platform with multiple financial products.

For example, M1 finance has a five-year history. When it was founded, its main business was intelligent investment advisor. Now it is positioned as a super app that integrates investment, lending and spending. Users can complete many tasks in the app, such as setting up a free portfolio, checking credit, and making regular repayment.




Up to now, revolut has completed 16 rounds of financing with us $917 million, the most recent of which took place in July last year, with us $80 million of round D financing led by TSG consumer partners.

For example, Lydia, a mobile payment start-up from France, has been established for seven years and has become a one-stop financial service application including bank accounts, payment cards, instant loans, insurance and other applications. Currently, it has 3 million users in France, and 25% of people aged 18-30 in France have Lydia accounts. However, due to the fact that its services rely heavily on transfers between users, the use of users has been greatly reduced during the period of severe epidemic and home isolation in Europe, and the transaction volume on the whole app has decreased by 70% in April.


Lydia completed the $45 million round B financing led by Tencent at the beginning of last year. At this juncture, Tencent also gave suggestions based on the domestic experience in home isolation. Lydia quickly began to transform to contactless payment, virtual bank card and other services, and took profit as the main goal.

In the field of financial technology, there are three main income channels for consumers:

1. Debit card

When users register, they will get a debit card issued by the platform to complete future payment tasks. When users use this card for transactions, the commission paid by visa or Mastercard is the income of financial services companies, such as chime and varo Digital banks are the first mock exam models to use this model. Each fee is not high, but if the number of users is large enough, it is a good revenue channel. But this premise depends greatly on the number of users and the number of users.


2. Financial products

Many of the start-ups mentioned above are developing more product lines, and the way they want to become super apps all fall into this category. The wide range of financial services they provide do not belong to their own brands. For example, paypal and Paxos reached a partnership last year, allowing users to buy and sell bitcoin on PayPal, and the service charges collected become the main revenue.

3. Subscription service


Robin Hood launched the $5 monthly Robin Hood gold. Users can enjoy exclusive functions such as market data under professional research, twice the purchasing power, and extending the trading time


If it's really like Angela strange and Zach Perret of a16z As we said, every company will become a financial technology company, and infrastructure as a service will redefine the speed and range of financial technology. At the same time, with the entry of e-commerce giants such as Wal Mart and Amazon, small start-ups begin to transform to integration, and are also working hard to make profits. In addition, sometimes the policy C changes with ups and downs It's not clear who will win, but there is no lack of brilliance in this fight.

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