Cross-Border Payments, Embedded Finance, and Emerging Regulations: Key Global Fintech Trends from Artem Lyashanov – CEO of Ukrainian Fintech Startup
Fintech is no longer about isolated innovations; it’s a cohesive global movement. Whether it’s the decentralization of payment methods or the integration of crypto payments, the industry is evolving, and the influence of local markets is at the forefront of this transformation.
In this article, the CEO of payment system bill_line Artem Lyashanov shared valuable perspectives on the dynamic trends shaping the fintech horizon. “As the CEO of bill_line, I’ve witnessed firsthand how local trends in countries like Brazil, Germany, and Ukraine are influencing the global stage. These micro-trends weave together to form a larger picture, reflecting a diverse and interconnected financial landscape”.
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Global methods transforming payments and cross-border transactions
The financial world is experiencing a fascinating juxtaposition: the simultaneous globalization of finance and the embrace of localized solutions that resonate with regional sensibilities.
Transborder payments have advanced beyond mere transactional functionality, responding to specific regional demands. In Brazil, Pix has surfaced as an instantaneous payment system, freeing transactions from the аconfines of traditional banking hours. In Europe, SEPA Instant is providing a parallel service, accelerating cross-border payments within the region.
But the trend is not limited to speed alone; it’s about autonomy and empowerment. Countries like Brazil, Canada, Australia, Germany, and Poland are nurturing local wallets and interbank transfers. By lessening reliance on monoliths like Visa and Mastercard, they’re transforming not only domestic payments but also painting a global picture. This shift mirrors bill_line’s success with Pix in Brazil, demonstrating how localized control can reduce costs and foster trust, underpinned by regional regulations.
The global demand for fluid, secure international transactions has catalyzed the emergence of innovative solutions. Real-time currency exchanges, transparent pricing, and adherence to international standards are now the norm. This global approach to cross-border payments is reshaping how businesses and consumers interact, reflecting a broader picture of an interconnected yet localized financial future.
Embedded finance: a challenge and opportunity for traditional banking
Embedded finance is not just a fleeting trend; it’s a global revolution redefining the very fabric of financial interactions. The rise of platforms like Revolut and Venmo, with QR code payments and instant micro-credit services, is just the tip of the iceberg.
Regions like Ukraine are playing a significant role in this evolution, but what’s particularly intriguing is how traditional banking is responding to this seismic shift. Here’s how:
- Adaptation through collaboration. Many conventional financial institutions are embracing the change, forming partnerships with fintech startups and innovative service providers. This collaboration is forging a more dynamic banking environment, where agility and responsiveness are prized.
- Resistance and regulation. Not all banks are on board with the embedded finance wave. Some are resisting, citing concerns about security, regulation, and a potential dilution of brand identity. The interplay between innovation and regulation is a delicate balance, and some traditional banks are wary of upsetting this equilibrium.
- Leveraging existing infrastructure. In mature markets, rapid growth in embedded finance is being facilitated by neobanks that leverage existing licenses and payment infrastructures. This symbiotic relationship allows traditional banks to participate in the embedded finance ecosystem without a complete overhaul of their systems.
- Reimagining Banking as a Service (BaaS). BaaS is no longer confined to the fintech niche; it’s a philosophy that’s permeating traditional banking. It’s allowing banks to offer their infrastructure as a service, opening new revenue streams and customer engagement channels.
Embedded finance is pushing the boundaries of what’s possible in the financial world, blending the realms of technology, banking, retail, and even social media. It’s a challenge and an opportunity for traditional banks – a call to innovate, collaborate, and redefine their role in a rapidly changing landscape.
Traditional banking’s response to this movement will be a defining factor in shaping the future of finance. Will they lead, follow, or resist? Only time will tell, but what’s certain is that the embedded finance wave is here to stay, and it’s reshaping the global financial landscape in profound ways.
Cryptocurrency in Retail
As embedded finance and new payment methods pave the way for innovative financial solutions, another disruptive force is making its presence felt in the retail sector: cryptocurrency. The adoption of digital currencies is no longer confined to the tech-savvy early adopters; it’s rapidly becoming a mainstream option, offering retailers and consumers alike more flexibility and choice.
Retailers worldwide are exploring cryptocurrencies as a legitimate payment method, driven by faster transactions and lower fees. Nations like Japan and Switzerland have recognized some digital currencies as legal tender for a while now. Despite the turbulence in the cryptocurrency market, such as the FTX exchange collapse, retailers worldwide are exploring crypto payments. Ukrainian retailers mirror this global trend as well, embracing cryptocurrencies, leading to increased average customer spending.
The adoption hints at a future where digital currency may become mainstream, redefining how we shop and pay. Though challenges exist with regulations and technology, digital currencies are here to stay and could become a crucial part of the interconnected, yet localized, financial future that we have begun to explore.
Acquiring’s big upgrade
Stagnation in the acquiring sector is giving way to innovation. Gone are the days of unchanged user flow, replaced by integrations with modern payment methods like Google Pay and Apple Pay. The 2022 shift towards subscriptions, charity donations, and crowdfunding isn’t confined to Ukraine; it’s a global response. Businesses like bill_line are leading the charge, implementing recurring payments and streamlining processes. The message is clear: quality user experience is essential, and businesses must adapt or risk obsolescence.
To wrap up
The landscape of global fintech is one of constant evolution, driven by a blend of localization and global trends. From the transformation of transborder payments to the rise of embedded finance and cryptocurrency adoption, we are witnessing a revolutionary phase in the financial world.
The fusion of traditional banking with cutting-edge technology is creating a more responsive, dynamic, and interconnected financial environment. This confluence is not just reshaping how we transact and interact; it’s redefining the very nature of finance itself.
At bill_line, we embrace this new era, with its challenges and promises, in order to be at the forefront of a global movement that may very well redefine our financial destiny.