The world of fintech is witnessing a lot of startups entering the market. There is a lot of enthusiasm among entrepreneurs all over the world who want to enter this complex yet interesting field. However, an important thing to keep in mind is that fintech startups are classified into different types.
When it comes to fintech startups, you need to know there are various kinds. Each one of them has different service offerings and different capital needs. On that note, let’s let’s learn about the different types of fintech startups so that you can have a better idea about it.
Lending Startups
The first type of fintech startup that we have in the market is the lending startup. It helps individuals as well as businesses to access the relevant institutions that can help them get loans to meet their financial needs. From peer-to-peer lending to personal loans, this type of startup helps businesses and individuals find relevant lending institutions to get loans from them.
Payment Startups
Another common type of startup in the fintech sector is the service provider for payment gateway. It allows businesses in different sectors to easily receive online payments from customers without any issues.
There are some fintech companies that act as a payment provider for businesses in high-risk sectors, such as iGaming, adult entertainment, online gambling, etc. An iGaming PSP (Payment service provider) will offer a high-risk processing merchant account to help businesses in that sector.
Personal Finance Startups
Personal finance startups are more like robo-advisors that can provide you with different suggestions to improve your financial conditions. It includes providing digital wallets or services for mobile banking to manage your finances in a much better way.
All in all, the focus of personal finance startups is on helping people manage their money more effectively. Not only that, they can also offer services to consumers for business debit cards.
Investment Startups
Last but not least, investment startups make it easy for you to invest in different opportunities. They can help people by providing access to previously unavailable investment opportunities or can involve developing new investment products. However, it is important to stay cautious of such startups and carry out due diligence before investing in them.
Concluding Thoughts
We hope you have a clear idea about the different types of fintech startups coming in the market. This is an important thing to note both as an investor and as a consumer of these fintech services or products.