The fintech industry continues to see rapid growth, with the market projected to reach $309 billion by 2025, according to a recent report by Linas. One of the key drivers of this growth is the increasing adoption of fintech products and services by consumers, with the number of fintech users expected to reach 1.7 billion by 2020. Additionally, global fintech investment reached $55 billion in 2018 and is projected to reach $150 billion by 2025.
One major player in the fintech industry is American Express (AmEx), which is building a B2B payments powerhouse. Their trajectory comes at little surprise as they acquired Acompay in 2019 and partnered with Billtrust and Versapay just this past year. Recently, American Express has acquired Israel-based B2B FinTech Nipendo for an undisclosed amount, which is a massive move both for AmEx and the future of B2B payments. Nipendo is a cloud-based RPA platform that automates purchase-to-pay and AP processes for large and medium-sized businesses. It integrates with businesses' existing payment infrastructure to streamline accounts payable (AP), invoice automation, supplier relationship management, and supplier onboarding processes.
Eyal Rosenberg, Nipendo Co-Founder & CEO, said about the acquisition, “Businesses can face a number of challenges even before they make a payment, including finding the right suppliers, managing order processes and supply chain, as well as handling discrepancies and invoice reconciliation. These traditionally paper-based processes require heavy investments of time, effort, and money…We are honored to become a part of American Express, excited about the synergy of our mutual vision and looking forward to serving as an important component of the new business value we can offer, by efficiently streamlining B2B payments.”
AmEx, by leveraging its vast network and resources, is positioning itself as a leader in the B2B payments space, offering innovative solutions and services to businesses of all sizes. With the acquisition of Nipendo, AmEx aims to strengthen its B2B payment offerings and streamline the payment process for businesses.
The fintech industry is poised for growth with emerging innovation and Amex is amongst the industry’s leaders. However, some note that the fintech industry is facing some challenges, including regulatory hurdles and data privacy concerns. Despite these challenges, the industry is well-positioned for continued growth in the coming years. Some also warn of a potential future scenario where the fintech industry becomes too centralized, and controlled by a few large players, leading to a lack of competition and choice for consumers. This could lead to negative consequences for the industry and consumers alike. We look forward to the exciting changes and new technologies emerging in the fintech industry but it is important for the industry to address these challenges and ensure a fair and open market for all players.