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Which Fintech players have garnered the most consumer adoption?
Hi there! Thanks for your question about Fintech players who have garnered the most consumer adoption. The short version is that Credit Karma Inc., PayPal Inc., and Square Inc., are major players in this area with some of the highest consumer uptake and engagement. Please read on for a deep dive of my methodology and findings.
METHODOLOGY
To answer your request, I based my search parameters on your previous requests that explained that your company is considering entering this area and that you are interested in Fintech geared towards digital and payments in the US. Therefore I narrowed my search parameters to include consumer uptake in the U.S only and I focused more on digital and payment options and less on technologies geared towards, lending, financial management or investing.
Measuring consumer uptake: In the final list of ten companies, the following metrics have been provided where available to give an indication of consumer uptake:
• The number of users or members where available.
• Crunchbase Rank: This is determined by an algorithm that takes into account the number of connections of a profile within the platform, the amount of community engagement, funding events, news articles, acquisitions, and more.
• Crunchbase Unicorn Leaderboard: The Unicorn Leaderboard is a list of leading private companies with post-money valuations of $1 billion or more based on CrunchBase data.
• Similarweb App Store Rank: App store rankings are based on App Meta Data, downloads and engagement, and keyword searches.
• Similarweb Google App Usage Rank: Similar web usage ranks are based on an algorithm that factors in “current installs” and “active users” as well as leaderboards for the last 28 days.
Please note: rankings are not static and fluctuate constantly.
Defining Fintech: To guide my research, I began by defining "Fintech". I discovered that the Fintech ecosystem is broad and can be categorized into A's, B's, C's and D's:
• A's are large, well-established financial institutions such as Bank of America, Chase, Wells Fargo, and Allstate.
• B's are big tech companies that are active in the financial services space but not exclusively so, such as Apple, Google, Facebook, and Twitter.
• C's are companies that provide infrastructure or technology that facilitate financial services transactions. This broad group includes companies like MasterCard, Fiserv, First Data.
• D's are disruptors: fast-moving companies, often startups, focused on a particular innovative technology or process. Companies include Stripe (mobile payments), Betterment (automated investing), Prosper (peer-to-peer lending), Moven (retail banking), and Lemonade (insurance).
My initial search results of Fintech companies involved two separate searches in "Finance" to include online, Android, and Apple platforms. The results elicited many companies from the A and B categories described above (i.e., large banking and financial institutions or large established tech companies moving into this space such as Yahoo.) Here are the outcomes of my initial search results of Fintech companies with the highest usage uptakes:
1. Bank of America - Bank of America Mobile Banking
2. JPMorgan Chase - Chase Mobile
3. Wells Fargo - Wells Fargo Mobile
4. Capital One Services, LLC - Capital One® Mobile
5. Navy Federal Credit Union - Navy Federal
6. U.S. Bank - U.S. Bank Mobile
7. USAA - USAA Mobile
8. PNC Bank, N.A. - PNC Mobile
9. Yahoo - Yahoo Finance
10. PayPal, Inc. - Venmo
1. Credit Karma, Inc - Credit Karma
2. PayPal, Inc. - PayPal
3. PayPal, Inc. - Venmo
4. Square, Inc. - Square Cash
5. JPMorgan Chase & Co. - Chase Mobile℠
6. Bank of America - Bank of America Mobile Banking
7. Capital One Services, LLC - Capital One Mobile
8. Wells Fargo - Wells Fargo Mobile
9. Intuit, Inc. - Mint: Personal Finance
10. MoneyCoach UG - MoneyCoach
I refined both of the above complete lists to filter out banking/financial institutions to leave mostly D class, disruptor startup companies. I then cross checked both lists with a third list of startups that I generated on Crunchbase where I was able to search by the category "fintech". Below are the 10 companies with the highest consumer uptake and engagement along with some metrics, that resulted from cross checking all three lists.
10 FINTECH PLAYERS WITH HIGHEST ADOPTION
1. Credit Karma Inc. provides free access to credit scores, reports, and monitoring. Credit Karma is a personal finance company that's focused on helping people make financial progress. Credit Karma offers a range of tools and personalized recommendations designed to help people get better deals on a loans, look for ways to save, or monitor their credit. Credit Karma has over 60 million members. Credit Karma appears on the Crunchbase Unicorn Leaderboard.
Apps: Credit Karma
2. PayPal Holdings Inc. provides online payment solutions to its users worldwide. Users can transact money through their account balances, bank accounts, credit cards, or promotional financing without sharing financial information. PayPal has quickly become a global leader in online payment solutions with more than 153 million accounts worldwide. Venmo, a service of PayPal is a free digital wallet that lets people make and share payments with friends. Venmo has around 1.5 million users.
Apps: PayPal, Venmo
3. Stripe Inc. provides a set of unified APIs and tools that instantly enable businesses to accept and manage online payments.
The company is not that transparent about how many users it has globally, or how much it’s making in revenues or total funds processed through the Stripe platform, except to say that these users now span 110 countries. Stripe appears on the Crunchbase Unicorn Leaderboard.
4. Square Inc. is a merchant services aggregator and mobile payment company that aims to simplify commerce through technology. Square helps people to take care of their business. Square's complete register service is a full point of sale with tools for every part of running a business, from accepting credit cards and tracking sales and inventory, to small-business financing. Apps include Square Cash, to send and receive money, and Square Order, a new way to pre-order food and drinks for pickup. Square has more than 3 million users and a network of 250,000 merchants.
Apps: Square Cash
5. Payoneer Inc. empowers global commerce by connecting businesses, professionals, countries and currencies with its cross-border payment platform. For business owners, professionals and freelancers, Payoneer offers a multiple of ways to get paid by their international clients and global marketplaces – quickly, securely and at low cost. Payoneer has over 3 million users in over 200 countries.
Apps: Payoneer
6. Mozido Inc. offers everyday transactions and alternative services at lower fees for those outside the financial mainstream. Mozido provides services through mobile phones with secure, cloud-based technology that is PCI security compliant and able to operate on any mobile platform, making it the ideal solution for users around the globe. Mozido appears on the Crunchbase Unicorn Leaderboard.
7. Ripple provides instant low-cost international payments. Ripple works with banks to transform how they send money around the world. 15 of the top 50 banks work with Ripple.
Crunchbase Rank - 245
8. Bluevine Capital Inc. gives small businesses a flexible line of credit to run their business or an advance on their invoices to allow small businesses to get paid immediately on their outstanding invoices.
Crunchbase Rank - 164
9. YapStone, Inc. provides an online platform tat powers payments for global marketplaces and large vertical markets, including apartment rentals, vacation rentals, homeowners associations, hospitality, and non-profits. Yapstone has over $15 Billion in payment volume annually.
Apps: RentPayment - by YapStone™
10. Tradeshift is a global business-to-business platform that helps companies run more efficiently, using cloud-based technology to improve processes like invoicing, workflow and supplier financing. For suppliers, they deliver free electronic invoicing, enabling faster payments and predictable cash flow. For enterprises, they empower them to work more easily and productively with their entire supply chain, anywhere in the world. 800,000 companies use Tradeshift's marketplace to buy and sell.
CONCLUSION
To wrap up, I was able to find ten key Fintech players with high rates of consumer uptake. I hope this helps! Thanks for asking Wonder, and please let us know if we can assist you with anything else!