Voice of the Industry

Technology driving the future of payments

Monday 20 March 2023 08:00 CET | Editor: Raluca Ochiana | Voice of the industry

Bogdan Dinu, Chief Product Officer at Thunes, shares insights into the most important factors behind the fintech explosion and elaborates on the future of the payments industry.


Today, thanks to infrastructure being available as a service, anyone can start a software company with a laptop and a credit card. Following this evolution, in recent years, there has been a dramatic increase in the number of companies offering financial technology, or ‘fintech’ – payments infrastructure ‘as a service’. This fintech revolution has been driven by a combination of factors.

One of the most important factors behind the fintech explosion is the declining cost of technology. In the past, only large banks and financial institutions could afford to invest in the latest technologies. However, thanks to the advent of cloud computing and other innovations, even small startups can now access powerful tools and services at a fraction of the cost. This has allowed fintech companies to challenge incumbents on both price and innovation.

In addition, the rise of digital banking has created a new generation of consumers who are comfortable managing their finances online. These consumers are open to trying new products and services that can make their lives easier. Fintech companies have been quick to capitalise on this demand with a wide range of offerings, from mobile payments to personal finance management tools.

Finally, the increasing global demand for innovative financial solutions has also played a role in the fintech boom. In many parts of the world, traditional banking products and services are no longer meeting people's needs. This has created an opportunity for fintech companies to provide alternative solutions that are more user-friendly and efficient.

Technology has always been a big part of the payments industry. From the early days of electronic data interchange to today's modern APIs, technology has continually evolved to meet the needs of businesses. Today, APIs are playing an increasingly important role in cross-border payments. For example, by integrating directly into existing treasury systems, they provide real-time visibility into FX rates and allow businesses to more effectively manage their global currencies exposure. In addition, APIs help businesses collect payments globally and settle with only one integration. The entire operational process of sending information and money can be streamlined and automated today. As the payments industry continues to evolve, technology will continue to play a vital role in enabling the future of payments.

As an example, neobanks have quickly become a popular choice for those looking for an alternative to traditional banking – one of the key benefits being their focus on cross-border payments, which is a critical requirement for many customers, both individuals and businesses. In order to create a cost-effective and transparent solution to move money, neobanks need an embedded finance solution that can handle money transfers quickly and efficiently. They need to be able to automate their operations and scale. Executing this is already possible, and it gets better every day thanks to fintechs, such as Thunes, focused to address this niche.

Another opportunity comes from the creator economy. There is no denying that social media platforms have changed the way we communicate and connect with one another. In many ways, they have made the world a smaller place. However, there is one area where social media platforms have yet to make a significant impact: payments. Many creator platforms offer micro-incentives for user acquisition, such as a few US dollars reward for signing up and uploading a first video. These small amounts can be difficult to process across borders, further complicating matters. In Thunes, thanks to the services we built in-house and direct processing, we reach a state where even micropayments are being executed profitably.

At present, most influencers are paid in US dollars, regardless of their location or currency. This can create several problems, including high transaction fees and exchange rate fluctuations. It also makes it difficult for influencers to budget and plan for their future. Most of the gen Z creators preferred to get paid in mobile wallets, and this is especially important for the 1.7 billion global unbanked population who don't have access to traditional banking services. Some social media platforms are beginning to address this issue by allowing influencers to be paid in their local currency. However, this is often not enough. To truly support global influencers, social media platforms need to allow them to be paid in real time, in their preferred local payment method. Only then will they be able to compete on a level playing field.

Moreover, in the future, every company will benefit from financial services, create new revenue streams, and better serve their customers.

This editorial piece was first published in The Paypers' Cross-Border Payments and Ecommerce Report 2022–2023, which taps into the fast-growing cross-border market and provides a comprehensive overview of trends and developments that are pivotal in this space, being the ultimate source of information for ecommerce businesses interested in expanding globally.

About Bogdan Dinu

As a seasoned product and fintech executive, Bogdan Dinu has more than 15 years of experience in the global payments market. He is currently the Chief Product Officer at Thunes and drives innovation in cross-border payments, leveraging technology to deliver solutions in emerging markets.



About Thunes

Thunes is a global payments infrastructure company. We have built a proprietary global network for an improved and more connected cross-border payment experience. We connect the old systems with the new ones, allowing businesses and consumers to instantly send and accept payments anywhere in the world, no matter which payment method they choose.

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Keywords: cross-border payments, ecommerce, fintech, neobanks, banks
Categories: Payments & Commerce
Companies: Thunes
Countries: World
This article is part of category

Payments & Commerce


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