Home / Companies / Start-ups /  SMBs choose fintech over banks

The lack of flexibility and adaptability in legacy banking infrastructure is pushing small and medium businesses (SMBs) around the world to adopt newer banking and finance tools and platforms. According to French IT services firm Capgemini's 2022 World Payments Report published on Thursday, while the use of 'new' payment tools and services such as QR-based instant payments and digital wallets accounted for 17% of all business-to-business non-cash transactions around the world in CY21, an increased pace of adoption of these new tools may see a quarter of all SMB transactions globally be done through non-legacy platforms. The companies surveyed businesses from around the world, including India. The report echoes the rise of tools such as the National Payments Corporation of India (NPCI)'s Unified Payments Interface (UPI), which saw its adoption rise 118% annually in the June quarter of this year. As experts say, factors such as no merchant discount rate (MDR) transaction fees, significantly shorter clearance cycles and more convenient international payments have been increasingly contributing to the use of new tools — as opposed to legacy banking services.

 

SMBs choose fintech over banks
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SMBs choose fintech over banks
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