Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Payments, Transfers, Rewards
Loop & EQ Bank Launch Multi-Currency Card for Canadian SMEs
Loop | Release | Dec 11, 2024
Image courtesy of Loop
Loop and EQ Bank Partner to Launch Canada’s First Multi-Currency SME Credit Card
Canadian financial platform for businesses, Loop, in partnership with EQ Bank have launched the Loop Global Visa Card, Canada's first multi-currency corporate credit card tailored for small and medium-sized enterprises (SMEs). The card simplifies cross-border transactions and offers SMEs the flexibility to operate in multiple currencies.
Why This Matters for Canadian SMEs
For many SMEs doing business overseas is riddled with high fees, unfavorable exchange rates, and complex expense tracking, creating significant barriers for companies looking to export abroad, especially in the face of global trade challenges like Trump's recent 25% tariff threat on imports. Loop is stepping up to provide smarter, lower-cost solutions specifically for the Canadian business landscape. With only 12.1% of Canadian SMEs exporting goods and services as of 2020, tools like the Loop Global Visa Card are designed to simplify international payments and reduce costs, helping more businesses operate globally.
In 2023, 97% of exporting firms were SMEs, contributing about 40% of Canada's total export value per the Canadian Federation of Independent Businesses trade research. The global marketplace is increasingly accessible yet Canadian SMEs face challenges in international trade with high barriers to entry in foreign markets compared to larger firms.
See: Loop Raises $6.4M CAD for SMB Global Finance Platform
Innovations like the Loop Global Visa Card can help level the playing field by streamlining financial complexities. Further, there's lots of room for growth. According to Global Affairs Canada in 2023, Canada's international trade reached a record $965.1 billion CAD but only 12.1% of Canadian SMEs were engaged in exporting goods and services (as of 2020).
Let's look at a couple of practical examples:
Save on forex rates - a Canadian e-commerce company sources products from Europe. With the Loop Global Visa Card, they can pay suppliers in EUR without incurring foreign exchange fees, reducing costs and simplifying accounting.
Issuing payroll smoothly in local currencies - a tech startup employs remote developers in the U.S. The card allows them to issue virtual cards in USD for payroll, avoiding currency conversion hassles while providing clear spend controls.
Key Features of the Loop Global Visa Card
- Use the card to pay in multiple currencies and settle in CAD, USD, EUR, and GBP, avoiding unwanted currency exchange fees(manage currency risks).
- Get access to Loop’s competitive exchange rates to keep international transactions affordable and save on rates.
- Create limits for physical or virtual cards, restrict purchases to specific categories, or control spending in certain currencies.
- Get automatic coverage of up to $25,000 per cardholder for unauthorized charges.
- Use the card with local vendors or global suppliers wherever Visa is accepted.
- No annual fees!
- Use the card as part of Loop’s platform to manage payments, currency exchange, and finances in one place.
- Note, this card is for business use only and cannot be used for personal, family, or household expenses. Certain restrictions may apply.
See: Explore Export Resources for Canadian Businsses
How does the Loop Global Visa Card compare with Traditional Corporate business cards?
| Feature | Loop Global Visa Card | Traditional Corporate Cards |
|---|---|---|
| Multi-Currency Settlement | Yes (CAD, USD, EUR, GBP) | Limited or No |
| Foreign Exchange Fees | None | Typically 2.5% per transaction |
| Spend Controls | Customizable limits, category restrictions, currency-specific controls | Basic controls |
| Annual Fees | None | $99–$500+ |
| Global Acceptance | Yes, anywhere Visa is accepted | Yes |
Ready to Expand Globally?
The Loop Global Visa Card helps Canadian businesses to compete globally by simplifying international payments while reducing costs so they can focus on growth and innovating. The Loop Global Visa Card is available to Canadian businesses (excluding sole proprietors in Quebec). To learn more or apply, visit www.loopcard.ca.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Tipalti Expands Canadian Operations with Localized Solutions
Release | Dec 10, 2024
Image: Freepik/rawpixel.com
Tipalti Launches Localized Product for Canada, Strengthening Its Canadian Footprint
On December 5, 2024, global finance automation company, Tipalti announced the launch of new tools made specifically for the Canadian market including support for Electronic Funds Transfers (EFT) and local bank accounts, making payments smoother for Canadian businesses, alongside their registration with FINTRAC as a money services business.
Why Now?
Tipalti is primarily a finance automation company that focuses on streamlining and automating accounts payable and global payment processes for businesses. They are beyond just a payments company with its core offerings around automating financial workflows such as invoice processing, tax compliance, supplier management, and payment reconciliation.
According to a recent study by Sage, 60% of Canadian finance leaders struggle with manual workflows and 40% report productivity losses from outdated processes. Tipalti believes it can automate tasks that optimize workloads by 80%. Further, Tipalti expects Canada's economy to grow in 2025 and they want to prepare to meet the growing demand for scalable financial systems.
See: Reversing Canada’s Digital Economy Productivity Decline
Sam Barakat, Tipalti’s Chief Revenue Officer:
“We’re here to help Canadian businesses modernize and grow. These new tools make it easier for them to scale up without getting bogged down by financial operations.”
Competition Heating Up
There are a number of other fintech companies offering similar payment tools and services for Canadian businesses that may have accelerated Tipalti's latest move in Canada. Finix for example is a San Francisco-based payments firm that recently announced expansion into Canadian markets in February 2024 and also offers EFT services and local bank account integrations in Canada.
See: VoPay & Sage Revolutionize SMB Payroll Solutions
Or VoPay, Canadian scaling fintech that specializes in EFT payments so businesses can send and receive funds directly between bank accounts. VoPay's API supports multiple payment methods and offers features like instant bank account verification and balance checks.
Outlook
As Canada’s economy continues to grow, the demand for scalable and efficient financial tools will only increase.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Is the BRICS Alternative Currency Plan Falling Apart?
BRICS | Dec 3, 2024
Image: Freepik/ibrandify
BRICS Nations Weigh Gains and Risks as New Currency Idea Faces Challenges
The original BRICS member nations including Brazil, Russia, India, China, and South Africa previously announced their bold vision to challenge the dominance of the U.S. dollar by creating a shared currency. The plan hatched and promised an alternative currency and payment system that would be free from the influence of U.S. sanctions and monetary policy.
See: Central Banks Favour USD and Gold Amidst De-dollarization
Lord Lamont of Lerwick stated:
"If it ever happened, it would be a major threat to the Western-led financial system, but above all it would make it impossible for the West to impose sanctions on countries like Russia, China or Iran or other malign countries."
But is the dream now unravelling?
Trump Threatens 100% Tariffs
Just a few days ago, U.S. President-elect Donald Trump announced that American wasn't going to sit by idly while BRICS trading bloc tries to circumvent the U.S. dollar and threatened to implement a 100% tariff on BRICS nations if they launch an alternative currency. He also demanded commitment from these countries that that would and abandon any de-dollarization efforts.
The idea that the BRICS Countries are trying to move away from the Dollar while we stand by and watch is OVER. We require a commitment from these Countries that they will neither create a new BRICS Currency, nor back any other Currency to replace the mighty U.S. Dollar or, they…
— Donald J. Trump (@realDonaldTrump) November 30, 2024
Growing Divide Among BRICS Members
Russia isn’t backing down arguing that Trump's threats could backfire by pushing even more countries to consider alternatives other than the dollar.
See: Credit Suisse: Statecraft and De-dollarization
Dmitry Peskov, Kremlin spokesman:
"[The dollar is losing its appeal as a reserve currency for many countries, a trend that is gathering pace]. More and more countries are switching to the use of national currencies in their trade and foreign economic activities. If the U.S. uses force, as they say economic force, to compel countries to use the dollar it will further strengthen the trend of switching to national currencies (in international trade)."
Recent reports say that some BRICS members may be stepping back from the initiative due to varying economies and conflicting monetary policies that are anticipated to be difficult to overcome. Each country has unique economic needs so a one size fits all approach to a currency solution is tricky. For example, China is an economic powerhouse and may prioritize its own currency at the expense of smaller nations.
What Does Each BRICS Nation Stand to Gain?
Is it a zero sum game with a clear winner and loser?
China is best positioned to benefit if a BRICS currency takes off. They are the largest economy in the BRICS trading bloc and Beijing could use the initiative as a stepping stone to boost the yuan's role in global trade. China is strategically looking to increase its global influence so its beyond just economics. Critics are concerned that such dominance by China would come at the expense of smaller BRICS members.
See: SWIFT Launching CBDC Solution Within 2 Years (to Compete with BRICS)
Russia, currently at war with the Ukraine and constantly at loggerheads with the U.S. has a lot riding on the idea of an alternative BRICS currency. Russia is currently facing a litany of sanctions and economic isolation so an alternative to the U.S. dollar could help stabilize Russia's economy and offer it a better hand on the geopolitical global stage. Conversely, a failed BRICS currency could force Russia into a rock and a hard place.
India is being more cautious as it understands that while a BRICS currency may make trading easier within a bloc, it could give China more control. India has its own massively growing economy and aspirations so it's walking a fine line that balances cooperation while protecting its independence.
For Brazil and South Africa the risks are high with smaller rewards since their economies are much smaller and they may struggle to stay competitive in a system dominated by China and Russia. So while they may be benefits for a larger block, their smaller interests could easily get pushed to the side so the benefits aren't as clear nor are they guaranteed. Having said that Brazil has been a strong advocate for a BRICS currency system over the dollar.
Global Financial Shift in the Making
While the U.S. dollar is still dominant, cracks are appearing as some countries are seeking alternatives to U.S. economic sanctions or geopolitical strategies. Since trading nations are deeply integrated and affect global markets, any significant changes to currency dynamics could have serious global impact. It could appear as shifting exchanges rates, new supply chains / trade flows and different financial alliances.
See: Tax-Free Bitcoin Zone Proposed by the USABTC
Companies and policymakers need to remain agile. Even if the BRICS currency initiative fails, its a movement that gained momentum and certainly a trend that the world cannot ignore.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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RPAA Registration Deadline Passed See Who Applied
RPAA | Dec 2, 2024
Image: Freepik/rawpixel.com
Retail Payments Supervision Update from the Bank of Canada (Registration Deadline Has Passed)
- The first registration period for payment service providers (PSPs) under the Retail Payments Activities Act (RPAA) ended on November 15 (see BoC's Retail Payments Supervision mandate).
- Companies that missed the deadline may be in violation of Section 104 of the RPAA and could face enforcement measures. See Supervisory framework for registration.
See: Canada’s Retail Payments Boom: $11.9 Trillion Growing Fast
- The Bank of Canada urges unregistered PSPs to apply immediately through the PSP Connect portal to avoid non-compliance.
Who Applied?
The Bank of Canada has published a list of applicants (currently 1187) including many key players in Canada’s retail payment space. This list will be updated regularly and will show all registered PSPs once the transition period ends on September 8, 2025.
PSPs must comply with regulations to manage risks and protect user funds. The Bank of Canada emphasizes the importance of compliance and is committed to supporting PSPs in understanding their responsibilities under the RPAA.
New Guidelines Coming
A new guideline on protecting users' funds will be published shortly which contains key information for payment service providers to meet their responsibilities.
See: Key Findings from 2025 Advanced Payments and Fintech Survey
Stay tuned for more updates...
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Rachel Reeves: UK’s Financial Innovation Blueprint
Fintech Policy | Nov 19, 2024
Image: Chancellor of the Exchequer Rachel Reeves
Financial Innovation Vision from the UK's New Chancellor of the Exchequer, Rachel Reeves
The UK has a new Chancellor of the Exchequer, Rachel Reeves, who took office four months ago, delivered her first Mansion House speech on November 14, 2024 to set out her vision for the UK economy. The Chancellor is seen as the second most powerful position in the UK government after the Prime Minister, and has significant control over the country's economic direction and priorities, and works closely with businesses, financial institutions, and global partners to protect and grow the economy.
See: UK Digital Securities Sandbox to Drive Fintech Innovation
In her first major speech, the UK is doubling down with a mix of new technology and financial innovation including the creation of a stock exchange for growing businesses to using blockchain to issue government bonds. Her innovative plans reach pensions, green finance, open banking, and capital markets all to boost growth, attract investment, and make the UK a global leader in financial innovation. Here's a closer look at some of the key announced initiatives and why they matter.
1. A New Stock Exchange Called PISCES
Her speech announced the launch a new stock exchange by May 2025 called Platform for Innovation, Scaling Companies, and Emerging Sectors (PISCES) (Platform for Innovation, Scaling Companies, and Emerging Sectors) designed to help fast growing companies secure the scale-up funding they need to grow and succeed. Part of the idea is to shift capital markets to better support smaller companies with high potential that often face challenges in raising funds or going public.
See: Corporate Venture Capital in Canada: Insights and Challenges
A specialized exchange like this could help attract global investors and provide more liquidity for these companies to access. In Canada, there's the TSXV and CSE both of designed to benefit attractive startups in accessing public markets.
2. Government Bonds on Blockchain
Reeves also announced the pilot launch of a blockchain-based platform to issue government bonds called Digital Gilt Instruments (DIGIT). By using the latest distributed ledger technology (DLT), the UK hopes to improve bond issuance by making it faster, cheaper, and more transparent. For decades, the bond issuance process has largely been untouched. A pilot like this could help transform public finance, offering insights and valuable lessons for governments globally looking to modernize their systems.
Rachel Reeves, UK Chancellor of the Exchequer
“Using distributed ledger technology for DIGIT marks a step change in how we issue government debt, making the process more efficient while maintaining investor confidence.”
3. Creating Pension Megafunds
Reeves announced plans to consolidate local government and work pension plans into Canadian or Australian style 'megafunds' to grow the UK economy. In doing so, she anticipates it to unlock about £80 billion for investment for infrastructure, housing, high growth initiatives. She makes it clear that this is a new strategy in how retirement savings are managed and prioritized in the UK, and such megafunds should be designed to benefit British savers instead of the Canada Pension Plan Investment Board profiting from UK assets.
See: Public Market Challenges and Equity Crowdfunding Capital
Rachel Reeves, UK Chancellor of the Exchequer
"We must ensure that British savers benefit from the returns on productive assets, not just Canadian teachers and Australian professors investing in the UK."
4. Lead the Energy Transition
In her speech, Reeves positioned the United Kingdom as a pioneer in sustainable finance and announced a framework for raising private capital for green projects such as wind farms and solar energy. The plan is to launch the Transition Finance Council in partnership with the City of London Corporation and industry leaders that will work to ensure companies have access to decarbonization finance.
See: AI Leaders and White House Discuss Energy Infrastructure
Given Canada's renewable energy potential, Canada could establish a similar task force focused on attracting private capital for clean energy projects. Collaboration with the UK's Transition Finance Council could help accelerate global efforts to support the energy transition.
5. Regulatory Reform for Growth
Reeves speech mentioned a few ways to recalibrate financial regulations to encourage innovation and growth without compromising stability such as overhauling consumer financial advice rules, and reducing banker pay deferral periods to attract top talent.
See: Insights from the UK’s Pro-Innovation Regulation Review
Rachel Reeves, UK Chancellor of the Exchequer:
“We’ve been regulating for risk, but now it’s time to regulate for growth.”
6. Open Banking and Fintech
She doubled down on the UK's National Payments Vision reaffirming the UKs commitment to open banking, ensuring that customers benefit from improved services from safe data exchange.
Rachel Reeves, UK Chancellor of the Exchequer:
"We are laying the groundwork for London to remain the global hub for financial technology."
Open banking is still developing here in Canada but adoption and growth lessons from the UK can help Canada accelerate the implementation of the initiative which is called 'consumer-driven finance'.
Why It Matters
Rachel Reeve's speech lays out a solid blueprint for using technology and smart policies to drive economic growth for the UK. It's a clear message that says in order to stay competitive, the country has to take bold steps and be open to change. Lessons that Canada should learn from.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Latest BoC Update for Retail Payment Service Providers
Retail Payments | Nov 18, 2024
Image: Freepik/gpointstudio
What’s Next for Retail Payments Supervision?
Registration for the Retail Payment Activities Act (RPAA) with the Bank of Canada has now wrapped up. If you're a Payment Service Provider (PSP), here's what you need to know about staying compliant, avoiding fines, and operating during the transition period, staying compliant.
1. Transition Period (November 1, 2024 - September 7, 2025)
The transition period allows PSPs who applied on time to keep operating while the Bank of Canada reviews their applications. If you haven’t applied yet, you need to do so right away to stay on the right side of the law.
2. Why You Need to Apply Now - Enforcement
If you’re operating without being registered, you could face heavy fines up to $10 million for serious violations. The Bank of Canada can issue notices if they think you’re breaking the rules. See enforcement tools.
3. Keep Your Application Up to Date
- Check your email regularly, just in case the Bank asks you for more details as they review your application.
- If anything changes after you’ve applied, update your application right away through PSP Connect. See amendments to registration applications.
4. Starting Operations During the Transition Period
- If you applied on time, you can start your payment activities whenever you're ready.
- If you're planning to start operating now, make sure you applied at least 60 days before beginning.
See: Key Findings from 2025 Advanced Payments and Fintech Survey
- If the transition period is nearly over and you still haven’t applied, you’ll need approval before you can start operating.
What You Should Do Next
- The Bank will publish final registration decisions in September 2025.
- If you haven’t applied yet, do so as soon as possible.
- Keep an eye on updates from the Bank of Canada about your application.
- Update any changes to your application right away.
Need help? Contact the Bank of Canada through this general inquiries form.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Key Findings from 2025 Advanced Payments and Fintech Survey
Fintech and Payments Research Report | Nov 12, 2024
Image: Advanced Payments and Fintech Report 2025 (Edgar, Dunn and Co.)
Insights and Opportunities for Global Payments and Fintech Innovations 2025
Edgar, Dunn & Co. has just dropped the 17th edition of the 2025 Advanced Payments and Fintech Survey (103 page PDF report) digging into the latest innovations and momentum powering the global payments industry forward. The report brings together insights from a 100 senior payment professionals from around the world who explore the influence of emerging technologies like AI, IoT, and blockchain, the rise of digital banking, and the impact of alternative payment methods and Central Bank Digital Currencies (CBDCs).
See: 2024 Global Payments Growth, Trends, and Fintech’s Edge
This post by NCFA Canada highlights the key findings from the payments survey and uncovers the latest data-driven and actionable insights to propel your business forward, providing a strategic roadmap for growth.
Key Findings from the Advanced Payments Survey
The survey was hosted between May and July 2024 with responses from 100 senior payments professionals around the globe.
1. Top Use Cases for AI and Machine Learning in Payments
- 85% of respondents see AI’s primary role in risk management and fraud detection.
- 51% identified customer behavior analytics as a growing application of AI.
- 55% say automating operations for error-free and quicker payments is a priority.
2. B2B Cross-Border Payments in Play
- 52% of respondents said B2B payments are the main focus for cross-border innovations given the demand for efficient and low cost international transactions.
See: AI, Funding Shifts and Regulatory Hurdles in Fintech 2024
3. Sectoral Growth in Digital Payments
- Retail and e-commerce are expected to lead digital payment adoption (65%), with remittances (48%) and travel (46%) also ready for growth.
4. Future Growth in Payment Methods
- Digital wallets (88%) and bank transfers (57%) dominate the future payment landscape, a shift away from traditional credit card payments.
- Buy Now Pay Later (BNPL) solutions are also gaining traction, particularly among younger consumers.
5. Mobile Solutions and Instant Payment Demand
- 68% of respondents expect instant payments to become standard, as consumers demand faster and more convenient transactions.
6. Influence of Regional Trends
- Asia-Pacific leads in expected payment innovations (50%), with Europe following at 23%. Canadian Fintechs can look to these regions for inspiration in mobile and instant payments.
7. IoT’s Role in Enhancing Payments
- IoT devices for payments such as wearables and connected cars are gaining momentum, particularly in retail and automotive sectors.
8. The Role of Security in Mobile Banking
- 63% of respondents stress the importance of biometric authentication to enhance mobile banking security.
- Real-time payment features are equally critical with 57% saying these as essential for consumer trust.
9. Open Banking and Open Finance as Innovation Catalysts
- According to the majority of responders, Open Banking is remain a major driver for financial innovation that enables third party access to financial data, fuelling the rise of customer-centric financial ecosystems. Open Banking is evolving into wider initiatives like Open Finance and Open Data, creating opportunities to enhance competition and improve customer experiences. (See: OECD 2023: Key Insights on Open Finance Policies | EU: MiCA, DORA, Open Finance Framework, and Digital Euro)
Image: Freepik/rawpixel.com
Strategic Insights from the Report
1. Digital Banks and Profitability
- Digital banks have seen huge growth but most still aren’t profitable (some are).
- Around 85% struggle with high customer acquisition and operating costs.
- Cutting acquisition costs by using AI for targeted marketing can save them up to 25%.
- Automating manual processes can trim costs by 30%.
- If digital banks can get customers to make digital banks their primary accounts it can make a big difference since primary account holders contributing almost 70% more in revenue.
2. AI and Machine Learning in Payments
- AI is transforming payments with powerful tools for fraud detection, personalization, and efficiency.
- Payment processors like Visa analyze millions of transactions per second with AI, catching suspicious activity instantly and reducing fraud-related losses by up to 30%.
- AI automation has been shown to reduce payment processing times by half, saving labour costs.
See: How Real-Time Agentic AI Will Boost Fintechs
- Personalized AI-based customer service is another advantage (becoming a new standard) with approx 45% of consumers now expecting personalized digital experiences whe it comes to their financial services.
3. Blockchain as a Cross-Industry Solution
- Blockchain technology reduces cross-border remittance costs by as much as 60%, thanks to its ability to remove intermediaries and process transactions directly. This savings potential is huge for the $750 billion remittance market.
- Blockchain’s secure, decentralized structure has reduced fraud cases by up to 30% in companies using it.
- Its versatility also extends beyond finance to industries like supply chain management and insurance who use blockchain to ensure transparency and accuracy in their operations. (See: Investing in the Future of AI and Blockchain)
4. IoT Payments Transforming User Experiences
- IoT-enabled payment devices such as wearables or connected cars are set to reach $6 billion in transaction value by 2028 with roughly 20% of consumers adopting these options especially in the retail and automotive sectors. See: Autonomous IoT Transactions and Micropayments
- Visa’s connected car technology allows drivers to pay for fuel directly from their vehicles, while Samsung’s wearable devices make payments as simple as a tap.
- Businesses benefit from real-time data insights that can boost sales by up to 25% through personalized offers and loyalty programs.
5. Alternative Payment Methods (APMs) and Mobile Wallet Growth
- Alternative payment methods, especially mobile wallets are on track to overtake credit cards as the primary payment choice by 2028.
- Mobile wallets already account for nearly 60% of online transactions in Asia, showing their global growth potential. However, the lack of compatibility between wallets (especially cross border) will limit usage until interoperability.
See: The Role of Fintech in the Circular Economy
- It’s estimated that increasing wallet interoperability could boost transaction volumes by around 30% with companies like Apple Pay and Alipay leading the charge in wallet expansion.
6. Central Bank Digital Currencies (CBDCs) in Cross-Border Payments
- Central banks are exploring CBDCs but most retail CBDCs face slow adoption.
- Wholesale CBDCs show promise in reducing cross-border transaction costs by 50% according to central bank estimates.
- China has issued over 180 million digital yuan wallets reaching $250 billion in transactions, while the European Central Bank is aiming for a digital euro by 2027.
- These efforts illustrate how countries are exploring CBDCs to make international payments faster and more cost effective.
7. B2B Cross-Border Payments and Fintech’s Role in Efficiency
- Traditional B2B cross-border payments face high costs, delays, and FX fees, often adding up to 8% in extra expenses.
- Fintech solutions are addressing these inefficiencies by cutting out intermediaries and offering better exchange rates.
- Companies like Ripple and Wise save businesses around 20% in transaction fees.
- The B2B cross-border market is projected to reach $56 trillion by 2030, and fintech solutions are essential in making these transactions more efficient and affordable.
8. Open Banking’s Evolution to Open Finance
- Globally, open banking is expected to grow to a $123 billion market by 2031, with platforms like Plaid and Moneyhub demonstrating the potential for open finance to enhance financial services.
- Data from a recent PwC study indicates that 72% of global Fintech investors favor open finance ecosystems due to their potential for customer retention and revenue growth.
See: Canada’s Innovation Paradox – Strong Start, Missing Impact
- Canada lags behind in open banking adoption limiting its fintech sector’s growth as investors are beginning to look outside Canada for open finance opportunities. Embracing open finance could boost competition and consumer choice, opening doors for more innovative financial products.
- 63% of Canadian consumers are interested in services that aggregate their financial data for streamlined financial planning. However, only 15% of Canadian banks currently offer comprehensive data-sharing capabilities.
- The UK has led the way with over 7 million open banking users and a 15% year-over-year growth in payment transactions linked to open finance. Canada’s hesitant rollout could place it at a disadvantage if regulatory and technical hurdles are not addressed quickly.
9. Digital Remittance Transformation
- Digital remittance solutions like Remitly and Xoom have significantly lowered transfer fees from traditional methods 7-10% to around 2-3% rates.
- Digital remittance is growing 10% annually, especially in areas with high migration rates such as Canada, offering an affordable alternative for underserved populations.
- Digital remittance platforms support financial inclusion by reducing fees which enables remittance families to retain more income for daily needs or investment.
10. Financial Inclusion Through Innovative Payment Solutions
- Roughly 24% of the global population is still considered unbanked (typically in emerging markets).
- Mobile money and digital wallet services are addressing this gap.
See: How Fintechs Are Tackling Financial Inclusion in Canada
- Greater financial inclusion through digital payments could add $3.7 trillion to emerging markets’ GDP by 2025.
- Kenya’s M-Pesa service exemplifies how mobile finance can provide essential banking services without traditional banks. Other countries can follow suit by improving digital infrastructure.
11. Insurtech and Embedded Finance Driving Financial Innovation
- Insurtech is growing rapidly with the market expected to hit $152 billion by 2030.
- Advanced data analytics let insurers offer custom policies, adjusting based on real-time user data.
- The offering of financial services by non-financial platforms via embedded finance is helping companies improve user experiences. For example, Shopify’s embedded financing options make it easier for small businesses to access funds directly on its platform with integrated services.
12. Evolving Retail and Gig Economy Payment Models
- Personalizing retail experiences increases purchase likelihood by about 40%, making social commerce and omnichannel strategies more essential.
- Gig economy workers and small businesses want real time payments. Half of gig workers prefer platforms offering instant payouts.
- Real-time payments also reduce administrative work for platforms so transactions run more smoothly and offer a better user experience.
13. The Resilience and Decline of Cash Usage
- Cash is losing ground worldwide as digital payments rise with some countries seeing cash used in less than 5% of transactions.
- Having said that, cash still plays a key role in areas with limited digital access or where people have less trust in banking institutions.
- While cash usage may continue declining, local economies and infrastructure gaps mean it won’t disappear anytime soon.
Closing Thoughts
The convergence of emerging technologies and their adoption globally reveal major shifts in global payments representing significant opportunities for fintechs as AI, IoT, blockchain, digital banking, open and embedded finance broaden access to financial services, making corss-border transactions faster and easier than ever before.
See: Industry Reports and Research
For fintech founders and investors, the survey uncovers prime areas for growth. Companies need to prepare for a more connected financial ecosystem and high bar for speed and inclusiveness to meet today's demand. Integrating these technologies and tools is about building a future of finance that's user-friendly, secure, and accessible.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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