Shaping The Future of Splitting Payments In Fintech

One of the main concepts to keep in mind in this era of financial innovation is how consumers enjoy sharing experiences and payments. Going for a night out with friends should be subject to splitting a bill into separate parts with the touch of a button. Several solutions exist already to a certain extent, but further improvements need to be made. No one wants to use the calculator app on their phone to determine how much they want to pay, nor does everyone have access to a credit card or Paypal account.

Also read: FinTech Education Will Let Us Talk Freely About Money

Traditional Finance And Splitting Bills Do Not Mix Well

Companies such as Venmo are well-known for their efforts in the world of splitting bills with friends or family. This service can be accessed online or through a mobile app, and will let users send invoices to other people for the amount of funds they owe. Paying for these invoices can be done through a multitude of payment methods, ranging from credit cards and bank accounts to PayPal.

But herein lies a major problem, as not everyone in the world has access to these financial tools. A large part of the world’s population is unbanked, meaning they cannot access bank accounts or credit cards. In most of these countries, cash is still the dominant vehicle to transfer value between individuals.

In return, this means those people have no access to PayPal either, as there is no payment method to link to their account. A solution has to be found outside of the world of traditional finance, especially in an era where peer-to-peer payments are gaining in popularity.

Even though not everyone wants to acknowledge it, our society is evolving to a new level. Gone are the days where we were limited by technology, as consumers and business break through these glass ceilings. The only limitation left is the one determined by our imagination, or lack thereof.

Decentralized Payments In FinTech

This is where the FinTech sector will play a huge role in the years to come. Innovation is about so much more than finding new ways to use existing financial solutions. In fact, the focus should lie on coming up with non-traditional payment solutions that are accessible to the global population, rather than certain regions.

The only way to achieve this goal is by sharing knowledge and technology among financial players and startups. Keeping valuable information to oneself will only stifle innovation in the financial sector, rather than helping our society evolve to the next level. It may seem unnatural for major players to work together when they are in direct competition with each other, but issues have to be set aside and collaboration is needed.

Solutions such as crowdfunding and peer-to-peer lending are just the first iterations of how the financial world will evolve in the years to come. Decentralization is key in the financial sector, and the need for oversight and the legacy system will start to diminish over time.

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