IDEAS home Printed from https://ideas.repec.org/a/aza/jpss00/y2019v13i3p226-236.html
   My bibliography  Save this article

FinTech 2.0: Software as the future of payments distribution

Author

Listed:
  • Paston, Ashley
  • Harris, Matthew

Abstract

While the trend for leveraging integrated payments software (FinTech 1.0) offered bank acquirers a new channel to disseminate payments, the current wave of FinTech (FinTech 2.0) consists of software companies integrating payments into their core offering. FinTech 2.0 companies are able to capture more of the payment economics and offer merchants a better experience. While a software company can pursue multiple pathways to offer payments to its customers, the only way to fully capture the benefits of FinTech 2.0 is to become a payment facilitator (payfac). Thanks to the emergence of dedicated infrastructure providers, this is now much easier. This paper discusses the historical, current and future state of merchant acquiring distribution, the benefits of new-age software-based distribution models, and the options available to software companies to capitalise on payments in this new model.

Suggested Citation

  • Paston, Ashley & Harris, Matthew, 2019. "FinTech 2.0: Software as the future of payments distribution," Journal of Payments Strategy & Systems, Henry Stewart Publications, vol. 13(3), pages 226-236, September.
    • Handle: RePEc:aza:jpss00:y:2019:v:13:i:3:p:226-236
    as

    Download full text from publisher

    File URL: https://hstalks.com/article/5148/download/
    Download Restriction: Requires a paid subscription for full access.
    File URL: https://hstalks.com/article/5148/
    Download Restriction: Requires a paid subscription for full access.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    payments; payment facilitators; integrated payments; verticalisation;
    All these keywords.

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aza:jpss00:y:2019:v:13:i:3:p:226-236. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Henry Stewart Talks (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.