What Is Fintech?
Technological Innovations in Financial Services are Called as “Financial Technology”. Mobile Payment Receiving and Money Transfer Systems Main Field of Activity of FinTech Companies. So what does this word that we’ve been hearing a lot lately mean? We searched for you ..
Today, there are different usage ways of the word FinTech. The Oxford dictionary defines the term FinTech as computer programs and other technologies used to provide and support banking and financial services. In other words, the word fintech has entered the dictionaries without a special word on its own.
We can describe FinTech, which is derived from the abbreviations of “finance” and “technology”, in simple terms, as innovative technologies developed for services provided in finance related fields such as banking, insurance or investment. In fact, technology has been in financial life for many years. Credit cards date back to the 1950s, and the use of ATMs goes back to the 1960s. Stock markets moved to the electronic environment in the 1970s. The reason why the concept of FinTech has been mentioned so often lately is that financial technological innovations have become much more visible in daily life. Being able to pay for coffee on your phone without even using a bank or credit card in the morning, or being able to open a new account online without going to the bank are just a few of them. Being able to make contactless payments with our phones while shopping is now a part of our lives.
The World of Payments Evolves to Mobile
Payment systems are the foundation of financial services. Reliable, fast and flexible payment options are critical for any business. This is why these companies are working to develop practical, cheap and secure technologies in the field of payment systems today.
Among these, the area where significant developments have been experienced recently; are “mobile payment systems”. They enable consumers to shop with their mobile devices and collection to sellers. In these systems, where personal phones and tablets turn into mobile wallets, two ways can be paid; remotely or closely. In remote payment systems, you pay for the product either via SMS or via the application on your mobile device. In payment systems, you make your contactless payment by bringing your mobile phone, which turns into a credit or debit card, closer to the POS machine.
Next Generation Money Transfer with P2P
Fintech companies are thinking about mobile money transfers as well as payments.
P2P is an acronym derived from the English word “Peer to Peer”. P2P computer language; refers to the network protocol used to allow data sharing between two or more clients that are “peers”. So P2P; It is a network system where files such as videos, pictures, music, documents and software are shared mutually. Since it is an environment where all resources are gathered together and not controlled, every P2P user can access the data of other users without paying money.
This is why FinTek is now looking for ways to use P2P for free money transfers and payments. Last year, Apple integrated Apple Pay Cash, which allows money transfer via messaging using P2P. This year, people in India started to transfer money to each other via Whatsapp. The advancement of technology in voice command systems also seems to make P2P the star of the future in terms of money transfers and payments. Unless we encounter a brand new financial technological innovation anytime soon.