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What Is the Role of Fintech Companies in the Payments Ecosystem

The CEO of BIT2ME referred to the future of fintech as “good”. However, he stated, “We live in a society that is not used to having a financial culture”. “Globally, there are many people who are unbanked, and technology allows it. The future lies in technological developments that allow the introduction of all people, whether they are banked or not,” he said.



The 9th edition of the Secure Payments & ID Congress took place last Wednesday, September 20th at Kinepolis Ciudad de la Imagen, in Madrid. More than 60 experts gathered to discuss and put on the table the new trends, challenges, and opportunities in the payment industry.

At a round table in the Lumière Room, moderated by Jaime Bofill, payments expert and member of AEFI, and with the participation of Víctor Pardo, CEO and Co-Founder of INESPAY; Abel Peña, CSO of BIT2ME; Alexandre Lima, Chief Marketing & Data Officer of ONEY; and Jesús García, Head of Fintech at Correos; the experts analyzed the current situation of the fintech sector in Spain and Europe, and the role they play in the payments ecosystem.

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The role of fintech companies compared to traditional players

Víctor Pardo began by saying that there are many challenges ahead, but “anyone with initiative will be able to set up a Fintech”. Regarding cybersecurity, the CEO of INESPAY talked about how this challenge is presented: “With PSD2 we tried to reinforce security in online purchases. We are still suffering from the famous double authentication factor, but the level of fraud has gone down a lot.”

“There is a very high sensitivity at the European level with scams and cybersecurity. We are seeing fraud attempts, but they come mostly by deception, that is, they see that it is impossible to make attacks through card cloning and what they do is deceive you through a phone call, messages…”, stressed Pardo, reiterating that “the scam is almost already becoming the subject of deception.”

As for the PSD3 Payment Services Directive, which is proposed as a step forward in the regulation of financial services in the EU, Pardo stressed that “PSD3 tries to regulate and also seeks – in the event that it happens – how this deception occurs, who is responsible”. In this sense, “clients can be more or less reassured in Europe,” he added. Looking ahead, in Pardo’s words, “we are going to continue to see a revolution.”

“The world of payments in particular and the world of fintech, in general, is going to have more and more weight on the general economy with respect to banking. I think fintech companies are going to follow a very clear trend forward,” said Victor Pardo, CEO and Co-Founder of INESPAY.

On his side, Abel Peña explained the role of fintech companies compared to traditional players: “We find two animals with different speeds; on the one hand, the banking sector and on the other, fintech companies that have a faster development capacity.”

“The complicated thing is to find that point of collaboration. We go at two paces, but I think there has to be a point of connection,” Peña pointed out.

The CEO of BIT2ME referred to the future of fintech as “good”. However, he stated, “We live in a society that is not used to having a financial culture”. “Globally, there are many people who are unbanked and technology allows it. The future lies in technological developments that allow the introduction of all people, whether they are banked or not,” he said.

Next, Alexandre Lima assured that, in Spain, “we have a very consistent fintech ecosystem and a very strong dynamic in the creation of fintech”. “The banking ecosystem has helped the development of the innovative system itself. Inevitably over the years, there are parts of sectors that have just consolidated, but that doesn’t mean that the dynamic is over. While we continue to look for solutions that improve the lives of consumers and businesses, and technology will help a lot in proposing strong financing systems,” Lima pointed out.

In reference to the digitization of the sector, in Lima’s words, “we have not reached 100% digitization of the financial world.” “There is a long way to go to continue digitizing the ecosystem, but there is also a need to have non-digital complements of support for those people who need it,” he stated, reiterating that “the future will follow in line with what we see.” “The consumer wants more and more choice and we want more and more instant stuff. We are all going to look for the balance between reaction, fraud, security… and customer,” he commented.

In parallel, Jesús García also emphasized the coexistence between fintechs and traditional players: “It’s not about competition, but about one feeding back on the other through collaboration. At the end of the day, it is a collaborative economy, where each one focuses on what it is an expert in and contributes value”. In the payments sector, “we are moving towards a situation where you don’t even know you are paying.” Looking to the future, “it is going to be increasingly transparent and you will be able to choose what to pay with at any given moment”. “Banks will focus on what is profitable and the future for fintech companies will be through innovation,” concluded the Head of Fintech at Correos.


(Featured image by Clay Banks via Unsplash)

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First published in ecommercenews. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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Valerie Harrison is a mom of two who likes reporting about the world of finance. She learned about the value of investing at a young age upon taking over her family's textile business when she was just a teenager. Valerie's passion for writing can be traced back to working with an editorial team at her corporate job, where she spent significant time working on market analysis and stock market predictions. Her portfolio includes real estate funds, government bonds, and equities in emerging markets such as cannabis, artificial intelligence, and cryptocurrencies.