From biometric payments tech to seamless identity verification to e-commerce infrastructure, we look at how big tech companies are going after key financial services verticals through new product launches, investments, M&A deals, and more.
Fintech funding has taken a beating this year after a record-shattering 2021, but big tech companies are still keen on the space.
The tech giants — such as Meta, Apple, Google, and Amazon — are well-positioned to do well in fintech, one key reason being that they all have far-reaching platforms with gigantic user bases. This creates opportunities to seamlessly integrate financial services into existing products through partnerships or in-house efforts, scale them up with ease to reach users already bought into a company’s ecosystem, and then benefit from network effects as they gather mountains of data on how users actually respond to these services.
With the big tech companies looking for new revenue lines, expect fintech to remain a key focus for them in the years to come.
Download the report to find out:
- The major tailwinds fueling big tech activity in fintech
- The competitive advantages of different tech giants in fintech
- Where big tech is competing in fintech
- Big tech investment activity in fintech is declining. Big tech companies have participated in 10 fintech deals worth a total of $1.2B in 2022 so far — their slowest pace of deal activity in the space for years.
- Big tech competition intensifies across digital wallets and e-commerce. Apple and Google are now in fierce competition for the digital wallet category. Both giants are eyeing a slice of the digital ID market, but Apple has a potential edge due to its partnership with the TSA. Meanwhile, Google and Meta are emerging as new e-commerce hubs, competing for Amazon’s market share.
- Big tech is experimenting with a wide range of fintech offerings, but some are still finding their footing. Google canceled its banking initiative Plex before the rollout, leaving long waitlists behind. Similarly, Meta ended its crypto initiative Diem after 3 years. However, the companies are far from abandoning fintech — Google, for example, has put its focus back on digital enablement.