Fintech Industry Trends

INDIA GOES OFFLINE, DIGITALLY! The Reserve Bank of India has launched the Offline Digital Rupee, a Central Bank Digital Currency that can move from one wallet to another even without internet or mobile network. Imagine paying for a cup of tea in the Himalayas or for groceries in a rural market where connectivity is zero and still completing the transaction in seconds. ✅ Digital trust has reached a new level. Money that works without the internet is not a product of convenience. It is the evolution of trust. When the value can move offline yet remain verified and authentic, we are witnessing the future of financial inclusion, not just technology. ✅ It solves the last-mile problem. For years, digital payments depended on networks, servers, and gateways. Rural India, remote areas, and even disaster zones were often left behind. The Offline Digital Rupee removes that dependency and gives digital money a physical character. This changes how we think of accessibility forever. ✅ It is faster, cheaper, and smarter. No third-party switches. No failed connections. No dependency on payment gateways. The value moves directly from one device to another, just like cash, but secured by blockchain-based architecture and backed by the central bank. The power of digital efficiency now exists without digital dependence. ✅ Programmable money means purposeful money. The RBI’s Programmable Central Bank Digital Currency model means money can be coded for a reason. Subsidies can be released only for their intended use. Corporate payouts can have specific validity. Social benefits can be tracked transparently. It adds responsibility to the currency itself. ✅ It redefines how economies will interact. Offline CBDC is not just a domestic innovation. It opens the door for new models of cross-border settlements, disaster-resilient financial systems, and new layers of fintech innovation. The world will look at this model as a live example of how technology can merge with human need, not just convenience. ✅ It reminds us what innovation truly means. The right innovation is not when a feature gets smarter, but when it becomes more inclusive. When a person in a no-network zone can transact as easily as someone in a metro city, that is when digital transformation turns into social transformation.

If you want to understand the cross-border #payments’ trends and #future, then this is a key list. My highlights from the OMFIF future of payments 2024 report, just published: 1. CBDCs (Central Bank Digital Currencies): -      Multi-CBDCs are emerging as alternatives to existing cross-border payments systems. -      Multi-CBDCs aim to 1) improve efficiency 2) reduce costs 3) challenge incumbent infrastructure by enabling transactions in local currencies. -      Project mBridge remains the most advanced multi-CBDC platform: · MVP stage in June 2024 · 32 observing members (out of which 28 central banks) · Biggest limitations for widespread adoption 1) liquidity 2) governance -      Interoperability models of CBDC design a key consideration. -      Faith in connecting CBDCs to improve x-border payments has dropped sharply 2. Correspondent banking: -      A $200 bn annual revenue business -      Compliance complexity is the number 1 driver keeping costs up -      Standardization (i.e. ISO 20022) is the way to reduce costs, but implementation has been a challenge (only 66% of surveyed institutions are likely to meet the November 2025 transition deadline). -      APIs and #AI are the main technologies to improve CB and bring down costs -      Fintechs have spotted the opportunity and are challenging banks 3. Tokenization: -      Tokenization can 1) streamline compliance checks 2) improve settlement efficiency 3) unlock new functionality -      Despite the growing popularity of stablecoins, the official sector remains skeptical of ceding control of tokenized cash to the private sector -      Achieving a cross-border tokenized network will not be easy (governance is the main challenge) -      There are several consortia, both public and private, pursuing tokenization. Project Agorá and Partior are two examples. -      Project Agorá’s goal is to create a platform for wholesale xborder payments including tokenised wholesale CBDC and tokenised commercial bank deposits. 4. Instant payments systems (IPS) -      Rapidly growing in importance - in use in 80 countries worldwide -      India and Brazil in the lead with UPI and Pix respectively -      Interoperability is the main challenge. BIS’s Project Nexus acts as a model by proposing a central hub to standardize the IPS connections (vs bilateral connections that are very difficult to scale) -      However, even central models like Nexus need substantial investment and face maintenance and governance challenges -      Connecting instant payments systems is seen as the most credible option to improve x-border payments Fragmentation remains the key challenge for cross-border payments. Despite promising initiatives across many levels and jurisdictions, we are still far away from an optimal set-up, i.e. a kind of a global payment network. Summary by: Panagiotis Kriaris, source: OMFIF, Future of Payments 2024

Let’s be honest, Nigeria doesn’t have a payments problem. What we have is an overcrowded space with too many players solving the same problem the same way. Before you build yet another payment startup, ask yourself: Are you solving a real problem, or are you just chasing VC money? The Over-Saturation Problem The Nigerian fintech space is flooded with payment solutions that aren’t fundamentally different. We have: Bank-led payment rails (NIBSS, Remita, PayWithCapture, USSD solutions). Wallet-based solutions (Paga, OPay, Kuda, PalmPay, Chipper Cash). Card processors (Flutterwave, Paystack, Monnify). Crypto/Blockchain gateways (Yellow Card, Breet). The startups/solutions above are actually some of the successful ones but there are thousands of others trying to join them. The problem? 1. Lack of Differentiation – Most startups use the same APIs, the same banks, and the same infrastructure but market themselves as “game-changers.” 2. Race to the Bottom – Lower transaction fees as a selling point is unsustainable. Profit margins shrink, and customer loyalty is nonexistent. 3. VC-Fueled Hype – Too many founders prioritize raising money over sustainable innovation. Investors fund what’s “hot,” not necessarily what’s viable long-term. The Real Fintech Gaps That Need Solving If you’re serious about starting a fintech company in Nigeria, focus on areas with deep structural inefficiencies instead of adding another payment button. 1. Cross-Border & FX Solutions Nigeria has a huge remittance inflow ($20B+ annually), but getting dollars in and out of the country efficiently remains a nightmare. Can you build a compliant FX liquidity solution that doesn't rely on black-market rates? Can you help businesses hedge currency risk at scale? 2. B2B Financial Infrastructure Most fintechs focus on consumers, but B2B finance is where the real pain points are. Can you fix invoice factoring, supply chain financing, or business credit underwriting? Can you build treasury management tools for African SMEs? 3. Embedded Finance for Non-Tech Sectors Instead of another standalone fintech, why not embed payments, lending, or insurance into existing industries? Examples: Healthcare payments (automated NHIS claims processing). Agritech finance (funding for smallholder farmers using IoT & AI risk models). 4. Alternative Credit Scoring & Lending Nigerian banks still don’t lend to SMEs properly. Can you leverage telco, social, and transaction data to underwrite risk better? Can you offer decentralized lending models that don’t rely on BVN-based credit scoring? Advice to Founders: Build Beyond the Hype 1. Solve a problem, don’t just build what looks “sexy” to VCs. 2. Differentiate, don’t just “improve” an existing model by 5%. 3. Think long-term sustainability, not just fundraising milestones. Nigeria doesn’t need another generic payment startup. We need real financial innovation. Be that founder who builds something truly game-changing.

But what if insurance worked more like Netflix? Netflix tracks your viewing behavior and adapts recommendations instantly. If insurance products adapting the same way, premiums adjusting dynamically to fitness levels, coverage expanding with life stages, benefits rebalancing as goals evolve. McKinsey estimates AI-led personalization could lift insurer revenues by 10–15%, while lowering claims costs through early risk detection. And The technology already exists. Wearables generate 250+ daily data points per user around heart rate, sleep, activity. PwC reports 63% of consumers are willing to share health data if it results in cheaper or more personalized premiums. And Personlaized premiums is not a distant reality. It can be achieved by: 𝟏. 𝐈𝐧𝐭𝐞𝐫𝐨𝐩𝐞𝐫𝐚𝐛𝐥𝐞 𝐝𝐚𝐭𝐚 𝐩𝐢𝐩𝐞𝐥𝐢𝐧𝐞𝐬 that allow secure ingestion of health and behavioral data at scale. 𝟐. 𝐑𝐞𝐠𝐮𝐥𝐚𝐭𝐨𝐫𝐲 𝐬𝐚𝐧𝐝𝐛𝐨𝐱𝐞𝐬 that encourage innovation while protecting privacy. 𝟑. 𝐀𝐈 𝐞𝐱𝐩𝐥𝐚𝐢𝐧𝐚𝐛𝐢𝐥𝐢𝐭𝐲 𝐟𝐫𝐚𝐦𝐞𝐰𝐨𝐫𝐤𝐬 to ensure transparent pricing and avoid hidden bias. 𝟒. 𝐄𝐜𝐨𝐬𝐲𝐬𝐭𝐞𝐦 𝐩𝐚𝐫𝐭𝐧𝐞𝐫𝐬𝐡𝐢𝐩𝐬 with health-tech, fintech, and wellness players to broaden value delivery. Insurance is likely evolve from a once-in-a-decade purchase to a living product. #DigitalIndia #Fintech #AI #technology #Fintech #AI #technology

In 2021, I became the first woman to head a unicorn in Israel, AKA Startup Nation. In many parts of the world, women are excluded from even the most basic financial services, so leading a fintech company is far from their reality. United Nations data estimates that 3.8 billion women live in the world, 50% of which are adults. According to the World Bank’s Global Findex Database, 1.4 billion of those 1.9 billion adult women, are unbanked. That’s 73.65%. Visit that statistic again. It represents a disturbing gender gap in financial access, with women being far less likely than men to have bank accounts or access formal financial services. This financial exclusion has personal impact. It diminishes women’s economic empowerment by restricting access to education and limiting their potential for personal growth and independence. It makes women more financially dependent, and therefore, more vulnerable. There's economic impact, too. Research by McKinsey highlights the economic loss due to financial exclusion of women, noting that closing the gender gap in labor force participation could add trillions to global GDP. Financial inclusion isn’t just a matter of equality – ensuring the same opportunities for all. It’s a matter of equity - ensuring women have the tools and access they need to fully participate in the global economy. That’s where technology enters the picture to level the field. The rise of mobile banking is a great example of innovation enhancing financial inclusion. According to a report by the International Finance Corporation, mobile money accounts are more popular among women in regions like Sub-Saharan Africa, where access to traditional banking is limited. Various fintechs provide financial literacy resources, helping women understand financial products, budgeting, and saving strategies. Other solutions include AI-driven platforms that offer personalized recommendations and advice, empowering women to make informed financial decisions. Aside from personal apps and solutions, fintechs can facilitate community-based lending and saving initiatives, allowing women to support each other through group savings or microfinance schemes, fostering a sense of solidarity and shared purpose. This International Women’s Day’s theme is "accelerate action". In my mind, nothing accelerates action like innovation. As we mark International Women's Day, let’s advocate and innovate to enhance financial inclusion for women worldwide. #IWD2025 #financialInclusion Papaya Global

Goldman Sachs - "Why Digital Asset Adoption Is Accelerating" The Institutions Have Arrived: 5 Signs Digital Assets Are Going Mainstream The narrative has shifted—from “if institutions will adopt digital assets” to “how fast they can scale.” Goldman Sachs’ 2025 update is a must-read. Here are five takeaways shaping the digital finance revolution: 1. $220B Stablecoin Market and Counting - Stablecoins—once dismissed as crypto's plumbing—are now powering real-world use cases from remittances to cross-border payments. - Today, their supply stands at $220B, equivalent to 1% of the US M2 money supply, and growing fast. Stripe’s acquisition of Bridge highlights this new payments battleground. 2. Tokenisation: From Talk to $18.9T Reality - Tokenized real-world assets (RWAs) are projected to reach $18.9 trillion by 2033 (BCG/Ripple). - Think bonds, real estate, and money markets moving on-chain—bringing real-time settlement, fewer intermediaries, and programmable liquidity. 3. M&A Explodes 15x in Five Years - Digital asset M&A hit $15.8B in 2024, up from just $1B in 2019. - With Coinbase acquiring Deribit and Robinhood buying Bitstamp by Robinhood, it’s clear: TradFi and crypto are converging—and it’s a “buy, not build” moment for market share. 4. Regulatory Clarity = Green Light - From MiCAR in the EU to the SAB 122 shift in the US, regulation is no longer the bottleneck. Instead, it’s becoming a catalyst. - The SEC’s rollback of SAB 121 lowers capital requirements for crypto custody, making digital assets more attractive to banks and institutions. 5. Blockchain Solving Real Problems Today - Walmart cut food traceability time from 7 days to 2.2 seconds using blockchain. - ESG reporting, luxury authentication, and cross-border settlement are just a few of the enterprise use cases going live. So What? - This isn’t hype—it’s hard data. - Institutional adoption is not on the horizon. It’s here. - For founders, CFOs, and policymakers: the question is no longer why digital assets—but how to win in a world that settles in real time.

Latest research tells us that female tech founders, in advanced tech and AI sectors, need twice as much experience as their male counterparts to secure VC funding. They also need a minimum of 12 years of leadership experience to gain VC funding, versus the male average of nine. This is what we mean when we talk about a double standard and a very real gender funding gap. While I know the issue of female founders receiving less VC funding is not new, the latest data, reported in Startups.co.uk, shows little improvement. VC funding for tech startups has slowed, but AI investment remains strong. However, the gender funding gap is glaring, with female founders receiving just 2% of funding in 2023. As AI-focused companies attract record VC investment, the gap risks widening before it improves. Money talks, and it’s time for investors to properly interrogate why female founders receive far less of their funding while facing double the experience expectations of men. To break this cycle, we have to tackle unconscious bias and the lack of women in VC decision-making. Women founders also face smaller networks, less access to mentorship, fewer repeat funding opportunities. The UK Government’s £250m fund for female founders is a step forward, but AI’s rapid growth must not deepen these disparities. I’ll link the report in the comments, but I’d really love to hear from female founders and VCs on what would really move the dial to help close the gender funding gap. It certainly feels like we’re a long way off. Photo credit: Startups.co.uk

🔵 State of Crypto 2025: Crypto Is No Longer Just ‘Crypto’ 🚀 Just reviewed the latest 𝐚𝟏𝟔𝐳 𝐒𝐭𝐚𝐭𝐞 𝐨𝐟 𝐂𝐫𝐲𝐩𝐭𝐨 𝐑𝐞𝐩𝐨𝐫𝐭, and wow—2025 is the year this industry finally outgrew its old labels. Here are some highlights: 🚀 Token innovation is accelerating, now seen as a new digital primitive on par with websites for previous internet generations. 💸 A major shift in economic activity: Hyperliquid and Solana generate 53% of revenue on blockchains today, surpassing Bitcoin and Ethereum's former dominance. 🏦 Traditional finance giants like Circle, Robinhood, and Stripe are building new blockchains focused on payments, real-world assets, and stablecoins — signaling mainstream adoption is underway. 📈 Stablecoin mentions in SEC filings have surged by 64%, highlighting growing regulatory focus and market importance. 🔥 Digital Asset Treasury (DAT) companies now hold about 4% of total Bitcoin and Ethereum, with exchange-traded products pushing that to 10% — crypto is becoming a core treasury asset class. 📊 Decentralized exchanges (DEXs) are rising, accounting for around 20% of spot trading volume and even surpassing centralized exchanges in revenues. 🌐 Beyond finance, DePIN (Decentralized physical infrastructure networks) is reimagining physical infrastructure networks like telecom and energy — with grassroots innovations like the Helium wireless network leading the way. 🔒 Privacy, quantum readiness, and AI-crypto innovation stand out as key future growth areas where blockchain will contribute to the advancements in the AI tech cycle. I view the term ‘Crypto’ as an umbrella term that barely contains the richness of today’s ecosystem, which includes innovations in infrastructure, apps & Dapps, banking, and investment products. The a16z State of Crypto 2025 report is an extremely data-rich read that turns the spotlight onto the diversity and depth of what’s unfolding. If you care about the future of blockchain and digital assets, you need to dive into this report. #crypto #digitalassets #fintech

During my recent visit to the Bank for International Settlements – BIS Innovation Hub Tour in Zurich, I had the chance to meet David Chaum, the grandfather of cryptocurrencies, and an advisor to my friend’s Melanie Mohr startup, PWR Labs. The insightful interaction occurred amidst a deep dive into the transformative projects aimed at reshaping the financial landscape. Project Nexus aims to streamline global commerce by creating a multi-national real-time payment network which the Reserve Bank of India (RBI) also joined recently. Project mBridge utilizes CBDCs to tackle inefficiencies in cross-border foreign exchange payments. By developing a robust multi-jurisdictional ledger, it ensures faster, secure, and cost-effective transactions, highlighting the practical applications of digital currencies in enhancing financial connectivity. Project Aurora leverages blockchain technology alongside artificial intelligence and machine learning to strengthen anti-money laundering initiatives. This integration enhances data privacy and cross-institutional collaboration, improving detection capabilities across borders. Project Agora involves working with central banks and private sector financial institutions to innovate settlement processes through wholesale tokenized assets and smart contracts. A month ago, I critiqued the concept of the 'Finternet' (https://lnkd.in/g4eVKqYw). At the time, I pondered whether this was a genuine breakthrough or a rehashing of ideas already explored by Ethereum, which has been a pioneer in programmable blockchain technology. Ethereum's framework has paved the way for tokenized assets, smart contracts, unified ledgers, and decentralized finance (DeFi), all of which are elements of the Finternet vision. Engaging with the BIS Innovation Hub has reshaped my view: their projects skillfully integrate cutting-edge blockchain technologies into traditional financial frameworks, not merely repackaging old ideas but weaving them into the global finance fabric. The focus now shifts towards enhancing interoperability across systems, with open blockchains and foundations like Ethereum increasingly playing a crucial role. This synergy promises a future where financial systems are not just connected but are universally innovative and efficient. Stay tuned for more insights from the The Proof Of Work Podcast Europe IRL Tour in the coming days. Thanks to Maha Al-Saadi for the snapshot setting the stage for our next tour in Qatar. 😁 🤝

Welcome to the latest edition of the Fintech Wrap Up Newsletter—this week we’re diving into tokenomics, the UK’s stablecoin ambitions, Ethereum’s evolving architecture, Southeast Asia’s digital payment surge, global open banking trends, and real-world tokenization use cases. All the full reports are available for download at the end of each section. Tokenomics is no longer just a buzzword—it’s the make-or-break factor for crypto projects. Binance’s report reveals how projects are shifting from public sales to community-driven incentives like airdrops and lockdrops. Longer vesting periods and burn mechanisms are helping manage inflation and align incentives. But even the best token model can’t save a weak product—utility, trust, and sustainable demand remain critical. In the UK, Innovate Finance highlights a race against time. While lagging behind global peers, the UK still has a shot at stablecoin leadership—if it builds a forward-thinking regulatory regime. Stablecoins could power AI-driven finance, tokenized securities, and even support the government’s digital gilt ambitions. With London handling 40% of global FX turnover, capturing 10–20% of the future stablecoin market ($20–40B) isn’t far-fetched. Nethermind and Deutsche Bank explore Ethereum’s evolution into an institutional-grade platform. Innovations like Proposer-Builder Separation, Single Slot Finality, and Trusted Execution Environments are transforming how Ethereum handles security, compliance, and real-time settlement. Layer 2 networks offer scalability with governance frameworks familiar to financial institutions. Southeast Asia is rewriting the playbook on ecommerce and payments. By 2028, 94% of online payments will be digital, with mobile wallets, BNPL, and real-time payments leading the way. Indonesia will emerge as the region’s largest ecommerce market, while Singapore and Vietnam push payment innovation forward. Cross-border ecommerce is booming, but it brings complexity. Open banking is going global, with 95 jurisdictions now charting their own paths. Regulation-led models dominate in Europe and the Middle East, while market-driven frameworks thrive in Africa and Asia-Pacific. Broader regulatory coverage enables richer data-sharing, paving the way toward full-scale open finance and cross-sector open data. Tokenization is also moving from theory to reality. Ripple’s report showcases high-impact use cases across bonds, real estate, collateral, treasury, and trade finance—unlocking liquidity, reducing friction, and cutting costs. Meanwhile, JPMorgan and MIT’s joint research proposes a new design standard for payment tokens with compliance, UX, and governance in mind. Until next time—stay curious, and keep building. #fintech #payments #banking