5 American FinTechs transforming the digital payments landscape

By Pavithra R

All of us would have heard about “war on cash”, a move towards a cashless society whereby policymakers around the world are transforming the economy to a digital and information-enabled paradigm. The uncertainties created by the COVID-19 pandemic have resulted in a host of changes, most of which have contributed positively towards the realization of a cashless society.

Payments made through digital modes, where both payer and payee use digital channels for money transactions are called digital payments. With the currenct emphasis on social distancing and increased concerns of using cash over fears that bills and coins could be contaminated, Digital payments are gaining momentum.

Here are the five important startups who are transforming the digital payments landscape:

Remitly (2011)

Remitly is an international payments company that leverages digital channels, including mobile phones, to send money internationally. The firm is also one of the largest independent digital remittance companies in North America, making international money transfers more transparent and more affordable through its global network. Fueled by Big Data, Remitly uses machine learning, mobile technology, and direct integrations with partner banks and cash pickup locations to calculate date and time recipients can expect their money to arrive. Its partnership with Visa helped the firm in modernizing the sending and receiving of international funds.

The firm recently rolled out its Passbook service targeting the immigrant market and has partnered with Green Dot to launch Cash Deposit for Passbook customers. The company is backed by industry-leading investors, including Generation Investment Management, Naspers PayU, and Bezos Expeditions.

Flywire (2011)

Flywire (earlier PeerTransfer) removes the boundaries in the transaction through its solutions that enable the global payment and receivables process through seamless transaction experiences. Its vertical-specific insight and technology allow organizations to optimize the payment experience for their customers while eliminating operational challenges.

The company recently secured $120 million in a funding round led by Goldman Sachs and has acquired Simplee, a healthcare technology platform.

Plastiq (2012)

Plastiq gives clients the ability to pay with a credit card, even if they don’t accept it. The company is on a mission to make it easier for businesses to pay and get paid, optimize cash flow, and control their finances. It works with major credit card providers, including Visa, Mastercard, and American Express, and its automated payment platform has signed up over one million clients. Recently, the company raised $75mn to help SMBs expand their payment options.

DailyPay (2015)

DailyPay is a leading no-cost, on-demand pay experience platform. It’s solutions easily integrate with companies’ payroll and time management systems to give employees control over their pay. Since the onset of the Pandemic, The company has been continuously engaging with clients to reduce its impacts by offering new solutions, partnerships, and by giving free access to pay for employees. Recently, the firm partnered with Viventium to provide its clients access to DailyPay products. Its client portfolio includes Adecco, Rockaway Home Care, Berkshire Hathaway, and Six Flags.

QuadPay (2017)

QuadPay is a consumer-centric payment platform that aims to transform the way shoppers pay for their purchases by offering simple and convenient payment methods. Its payment platform gives shoppers a choice to pay for their purchases via 4 simple, interest-free installments empowering users to leverage buy now, pay later service, and avoid interest repayments. The company recently partnered with Australian publicly traded buy now, pay later (BNPL) firm, Zip Co to create a $1 billion+ global payments company.