What sectors do online payment startups try to target?

Fintech startups tend to be more connected with online payments rather than other services that are not as common to see. Things such as blockchain and microcredit services may have started to become more and more popular, but in conclusion, everything comes down to a better method of making or receiving payments.

It was revolutionary when startups were targeting the simple benefit of immediate transactions, but it quickly became redundant as everybody was simply repeating it over and over.

Soon enough, competitors to these already-established companies like PayPal started to change their gaze from the global markets to very specific industries.

For example, we can see that Neteller is trying to focus on the gaming industry a lot more than anything else. Skrill is trying to move over to e-commerce, while companies like Paysafecard are trying to dominate the gift card sector.

Overall, we can say that these payment providers are starting to pick apar the global market and try to conquer niches before they’re widely adapted so that in the future, they’ll be the first provider companies approach.

Let’s find out what sectors could have the potential for such dominance from a single provider.

The eSports industry

The eSports industry is kind of a broad term, the streaming industry is a bit more relevant to mention, but judging how these two sectors are directly connected to each other, it makes sense to consider them as the primary target.

You see, the eSports industry relies on online streaming platforms in order to drive traffic to their events, which then converts into revenue due to multiple sponsorship deals, marketing services, and various other benefits.

However, that isn’t the only way companies or individuals drive income from their events. The streaming platforms come with subscription payments that viewers usually go for due to additional benefits, such as exclusive interviews and in-built chat.

Furthermore, the eSports industry is the producer of some of the most popular streamers, because viewers want to learn by watching them play. Sponsoring a few players and providing the payment platforms for donation is going to drive the reputation of any fintech payment provider out there.

The best example for such integration of fintech with eSports is the Russian market. Local payment providers that try to cover most of the Russian speaking population, often sponsor eSports events and try to use it as a marketing source as well as encourage the adoption of custom platforms for locals.

The global scene could be a bit difficult, but according to experts from the Russian eSports betting association, the local eSports market share makes it possible. Therefore, if a fintech company were to decide on entering the eSports scene, it would have to choose between large markets, such as the US, China, South Korea, Japan, and various other countries.

Global adoption would be a serious issue compared to already existing giants like PayPal.

e-Commerce

The e-commerce industry is already being dominated by fintech, more specifically by PayPal, but that doesn’t mean that specific segments of that sector cannot be targeted by smaller startups.

For example, PayPal is dominant on platforms such as eBay and Amazon, however, new websites are popping up everywhere we look, which target specific products because it’s easier to gain traction that way.

Even Amazon started with just selling books, in the beginning, therefore it’s a relevant business strategy.

For example, if a fintech startup were to target the e-commerce sector which specializes in tech sales, then it would be a possibility to include additional benefits on tech purchases and what not.

Overall, what I’m trying to say here is that there are so many options to come up with additional benefits for the industry.

Gaming

As dissapointing as it may sound for many, most of the payment startups try to get into the online gaming space and somehow provide payment services to the players as well as the platforms.

It’s completely understandable as to why they’d want to enter this market, considering its profitability and relevance in some of the most profitable market segments like Australia and Canada.

However, the issue is that it is also being dominated by large companies like Neteller and Skrill, therefore some additional innovation is required.

Paysafecard managed to see the missing feature, which was additional anonymity, something which players always crave in order to avoid their banks’ eyes.

These small additions to the industry are what most payment providers are trying to target, but when it comes to the anonymity they fall short compared to crypto payments. Therefore they try to resort to lower transaction fees, but it hurts them so much in the short run, that they’re not able to survive until the long run at all.

What kind of picture does this paint?

This article should be an example of what fintech can really do in the digital economy, which is becoming more and more widespread, especially in developed countries.

Governments like Russia and the United States are in constant talks about digital transactions, payments and various other segments that fintech startups try to target.

However, it’s apparent that right now, payments are the primary focus of most fintech companies as it’s becoming to be the most lucrative segment yet.

People are starting to distrust their local banks due to curring interest rates and waining security. In the long run, it’s not uncommon to find people using eWallets to store all of their savings and what not.

And the sectors listed above are sure to switch to third party payment providers completely when compared to bank payments.