January 19, 2016
Borderless innovation is a broad topic, which includes global expansion, global networking, cross-country laws, global business opportunities and partnerships and a lot more. A few FinTech startups have been successful in global expansion. Unlike startups in other fields such as taxi aggregators (think Uber) or productivity apps that expanded very quickly across the globe, it is difficult for FinTech companies to do the same. Since technological advancements allow companies to operate globally even while being physically located in one country, it presents a great opportunity to grow revenues through global expansion.
However, for FinTech companies, it is not easy to expand globally as money is involved and when money is involved, there are a lot of regulatory and compliance issues you have to take care of, not to mention the licensing requirements. As the barriers are higher for global expansion, very few FinTech startups have successfully managed to expand globally. Factors that contribute to or decide the success of global expansion for a FinTech startup include regulations, market opportunity, professional network, success in the home country, working with local industry bodies, local ecosystem, competition and flexibility of business models. Out of all these factors, regulations play a very critical role. When a startup’s business model revolves around payments, the FinTech startup has to devise a plan to smartly enter the market while following the regulations in the foreign country/continent. Many FinTech startups have also expanded globally via partnerships with other companies in the foreign country or by winning big clients in the foreign country. Global expansion is definitely not easy and to honor the efforts by FinTech startups/companies that have successfully been able to do that, we identified the top 25 FinTech startups/companies that have managed successful global expansion and have been growing at a consistent pace.
Payoneer: Founded in 2005 and based in New York, Payoneer is venture-backed, profitable and ranked in the top 100 of Inc. 5000’s Financial Services companies. Payoneer empowers global commerce by connecting businesses, professionals, countries and currencies with its innovative cross-border payments platform. In today’s borderless digital world, Payoneer enables millions of businesses and professionals from more than 200 countries to reach new audiences by facilitating seamless, cross-border payments. Additionally, thousands of leading corporations including Amazon, Google, Airbnb, and Getty Images rely on Payoneer’s mass payout services. Working in conjunction with the ecosystem, they recently did a successful roadshow (three cities) in India.
Square: Square is a software platform that enables retail stores and restaurants to accept mobile payments via iOS and Android devices. The company’s POS service offers tools for every part of a business, from accepting credit cards and tracking inventory, to real-time analytics and invoicing. Square also offers sellers financial and marketing services, including small-business financing and customer engagement tools. The payment company is said to have earned $560.6M in revenue in the first half of 2015, which is 51% more than in the first half of 2014. On November 6, 2015, Square filed for an