The PAYTECH Book

How to Build a Successful PayTech Product

By Vasyl Soloshchuk

CEO, INSART

In recent years, we have observed an explosion of FinTech startups. Few of them manage to succeed and monetize their business. Very often they fail due to a lack of understanding of the industry, its challenges and its gaps. This gets in the way of innovative ideas and workable solutions.

So how can FinTech startups build successful payment products?

Find the Problem

Although the US and European payment ecosystems are already well developed, they are far from ideal. Many things have not significantly changed in the last decade. For example, all payments are always about bank accounts. A consumer can’t use PayPal, Venmo, Zelle, or any other payment platform without connecting with a bank account.

There are several problem areas where opportunities lie:

• There’s certainly a trend towards seamless payment processes. Great examples are Uber and the checkout-free Amazon Go stores, where the payment process is hidden entirely. Companies that provide services relevant to other areas of life will succeed if they use technology to make payments so easy that they are almost invisible to consumers.
• Big data analytics has been a buzzword for years; however, little has been done in terms of processing the data. Transaction data contains insights about consumers, their financial position and the goods and services they buy. Machine learning can be used to analyse customer experiences, preferences and behaviour. ...