Fintech or financial technology in the last decade has been one of the world’s most promising sectors. FinTech has changed the way finances are conducted with mobile banking, investing, and blockchain apps. According to the Modern Knowledge World, the centerpiece of this technology trend is the United States where 1,491 startups and $58,5 billion invested in the sector.
Yet banks are not the only financial institutions that have changed technologies. Digital financial access is embedded in entire markets, including digital loans and mobile stock systems, e-commerce payment networks, and digital currency exchanges.
In this article, we will talk about some of the top Fintech startups in the USA. So, let’s get started.
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Fintech means Finance + Technology which refers to the amalgamation of both into software that seeks to improve and automate the delivery and use of financial services. Fintech defines any business offering financial services through software or other technologies, from smartphones to cryptocurrency payment applications.
Fintech firms have changed nearly every part of the finance sector in recent years. Ten years earlier, individuals had to visit a branch or bank to apply for a deposit, a credit or to transfer funds literally from one bank to another. At present, Fintech has made it possible, without having to ever step into a bank to spend, borrow, save, and move funds through online and mobile services. Although conventional institutions are picking up technologies from fintech steadily.
Evolution of Fintech in the USA
Fintech was even longer than most people believe. Though Fintech’s current version helps you to pay for a coffee cup with a smartphone app, financial infrastructure history goes back to the first credit cards accepted by the public at the end of the 1950s.
Financial technologies developed and implemented many significant milestones in the mass market after the credit card, such as ATMs, Electronic Shares, Mainframe Bank computers, and internet stock investment. Many modern technologies improved the financial system that most people used, but had to think seldom about every day.
Today, solutions from the Fintech industry challenge existing banking infrastructure, for example by using a payment app on the mobile wallet, rather than the carriage of physical credit cards in a physical wallet.
Fintech’s various markets have been revolutionized, particularly in the financial, commercial, insurance, and risk management industries. Fintech firms include startups, technology companies, and existing financial institutions leveraging digital innovations such as big data and artificial intelligence to enhance financial services usability and performance, blockchain, and edge computing.
List of Top Fintech Startups in the USA
Stripe
Founder – Patrick and John Collison
Founded – 2010
Stripe Logo | Top Fintech Startup in the USA
Stripe is an Irish-American financial service and SaaS company founded by Patrick and John Collison. Stripe provides payment infrastructure for businesses of all sizes from startups to large enterprises that use Stripe’s software, and APIs to accept payments, send payouts, and manage their businesses online.
Zoom, Shopify, and Amazon are some of their clients. Stripe claims to be the world’s most powerful and end-to-end API. In 2019, Stripe launched a new corporate credit card and small business loans, which are automatically repaid from payments it processes for borrowers.
Chime
Founder – Chris Britt
Founded – 2012
Chime Logo | Top Fintech Startup in the USA
An increasing crowd of startups bets on your smartphone for banking. Chime, headquartered in San Francisco, has experienced its sales explosion over the past year and provides a debit card with no annual or overdraft charge. According to a person familiar with the topic, it is set to hit almost $200 million in 2019, a fourfold increase over 2018. With many significant tactics, Chime has drawn 5 million clients – or about 3.3 million users, based on an annual average of 1.5 accounts per client. Chime allows you to pay for a direct deposit to control the main functionality.
Plaid
Founder – Zach Perret and William Hockey
Founded – 2013
Plaid Logo | Top Fintech Startup in the USA
Plaid was founded by Zach Perret and William Hockey. Plaid provides a simple front-end module that streamlines the onboarding experience. It can be implemented with 2-3 lines of coding. Plaid connects payment apps like Square Cash and personal finance apps like Acorns to users’ bank accounts to transfer and track funds. American Express, Venmo, Coinbase, and Betterment are some of their clients.
SoFi
Founder – Mike Cagney and Dan Macklin
Founded – 2011
SoFi Logo | Top Fintech Startup in the USA
SoFi began out as a small business with just one commodity by launching a fintech service mainly for refinancing student loans. The organization sells several items today, but refinancing student loans remains its flagship commodity. SoFi is a value-driven organization with a task to help our members earn a living. We develop new financial goods and services that can enable customers to borrow, save, buy, save and safeguard their cash more, gain financial freedom, and meet their ambitions—from homeownership to pension plans, to paying student loans, and more.
Coinbase
Founder – Brian Armstrong and Fred Ehrsam
Founded – 2012
Coinbase Logo | Top Fintech Startup in the USA
CoinBase has become a regular on-ramp for new crypto-investors as the leading mainstream cryptocurrency exchange in the United States. Coinbase provides a broad range of items, including cryptocurrency investment, an integrated trade network, institutional custody accounts, a retail investment wallet, and a secure U.S. dollar coin. Coinbase has taken the lead in offering crypto custody services to organizations since having developed its position as a stable and regulatory crypto-exchange and a personal wallet and new currencies tailored to cater to those wanting more anonymity. The company has become a pioneer in the crypto industry.
Ripple
Founder – Arthur Britto, Jed McCaleb and Chris Larsen
Founded – 2012
Ripple Logo | Top Fintech Startup in the USA
Ripple is both a peer-to-peer (RippleNet) and a digital currency transferrer (ripple XRP). The platform itself is a protocol for open-source transactions between two parties. All currencies, such as sterling currencies, bitcoins, and air miles, among others, can be traded on the site. In 2019, XRP sold $500 million to MoneyGram, using sales to raise and invest up to $50 million, currently using XRP in 10% of its Mexico purchases across borders.
Toast, Inc
Founder – Steve Fredette, Aman Narang and Jon Grimm
Founded – 2012
Toast, Inc. Logo | Top Fintech Startup in the USA
Toast, Inc. is a Boston, Massachusetts-based cloud restaurant tech firm. Toast, Inc. was one of the leading technology names when the calendar was turned towards 2020. In the secondary markets, shareholdings of the private enterprise that produces restaurant apps were in strong demand. In mid-February, current investors contributed about $5 trillion in investment, almost double the previous year.
Spur
Founder – Glenn Clayton
Founded – 2017
Spur Logo | Top Fintech Startup in the USA
Spur simplifies human capital by leveraging a digital interface to provide embedded financial services on an hourly basis for its staff. Your business plan saves time and resources and allows staff to improve their financial status. Spur was developed by companies who want to take up the responsibility of job management less time and more time for their enterprises, their clients, and their hourly employees.
Credit Karma
Founder – Kenneth Lin
Founded – 2007
Credit Karma Logo | Top Fintech Startup in the USA
Credit Karma is known best for its free credit and loan reports. It is however a platform that provides its customers with the ability to create a stronger financial future. If you wish to use Credit Karma you should give your name and the last four digits of your Social Security number. You should have simple personal information. Credit Karma can then view your loan report, and collect and make it available to you with your consent. For users who utilize credit card reviews, personal, home-and-auto loans, or auto insurance, Credit Karma earns a big reference fee.
Opendoor
Founder – Eric Wu, In Wong and Keith Rabois
Founded – 2014
Opendoor Logo | Top Fintech Startup in the USA
Home sellers in 21 cities can submit all-cash deals online from Opendoor and collect offers within 24 hours. The application initiated last year helps customers to arrange their own guided tours and deliver houses to sell in six cities, Dallas and Phoenix included. You only present details and pictures of your home through their website to sell your home with Opendoor. All these advantages Opendoor especially apply to veterans, openings, relocators, or people who have to sell their homes quickly. Opendoor also appreciates the ease of online and straightforward deals and costs for the youngest generation.
Root
Founder – Alex Timm and Dan Manges
Founded – 2015
Root Logo | Top Fintech Startup in the USA
Founded by Alex Timm and Dan Manges, Root raised $100 Billion for a $1 Billion valuation in 2018 and entered the unicorn club. Root provides car insurance to drivers. Root qualifies customers and sets their rates by first monitoring their driving with a smartphone app measuring 200 variables. After monitoring they provide a quote and allow their customers to change policy. Last year, Root brought claims processing in-house and expanded into renters’ insurance, offering to cover property whether stolen from a customer’s car, apartment, or hotel room.
Paydiant
Founder – Kevin Laracey, Chris Gardner and Joe Paratore
Founded – 2010
Paydiant Logo | Top Fintech Startup in the USA
Paydiant, Inc. is a PayPal-owned financial technology agency. It offers cloud-based services for supermarkets, insurers, point of sale, and ATM vendors. The enterprise is located in Auburndale, Massachusetts, and was founded in 2010. The North Bridge Investment Partners and General Catalyst Partners funded Paydiant for $ 7.6 million in 2011. In 2012 and 2013 Paydiant earned $12 million and $15 million in grants.
Kraken
Founder – Jesse Powell
Founded – 2011
Kraken Logo | Top Fintech Startup in the USA
Kraken was founded by Jesse Powell in the year 2011. This US fintech startup deals with the trading of cryptocurrency. It is a big marketplace where buyers, sellers and traders gather together for exchanging all kinds of digital assets. The platform has over 9 million customers from over 190 countries. The headquarters of the company is situated in California, The United States of America. Kraken also has released an app for its international customers in 2021.
Robinhood
Founder – Vladimir Tenev and Baiju Bhatt
Founded – 2013
Robinhood Logo | Top Fintech Startup in the USA
Robinhood is a fintech company that provides an online platform where you can invest and trade without giving any commissions. The company was founded by Vladimir Tenev and Baiju Bhatt in the year 2013. The company’s aim is to make investing familiar and easy for everyone. The headquarters of the company is situated in California, The United States of America.
Brex
Founder – Henrique Duburgras and Pedro Franceschi
Founded – 2017
Brex Logo | Top Fintech Startup in the USA
This fintech company mainly deals with technology companies and provides them with business credit cards and accounts for cash management. The company was founded in the year 2017 by Henrique Duburgras and Pedro Franceschi. The company also offers financial management tools to the business of its customers. The headquarters of the company is situated in California, the United States of America.
Conclusion
During the COVID–19 pandemic, particularly in emerging markets, the Fintech industry continued to help expand access to financial services with strong growth in digital financial services of all kinds. For poverty reduction and economic development, access to quality financial resources is important. The access and use of basic financial resources for poor people, in particular women, will increase wealth, strengthen resilience, and better their lives. Fintech developments aim to lower the costs of service supply, enable more customers to be served and reduce the need for face-to-face contact, critical to the pandemic’s continued economic activity.
FAQs
How does technology help finance?
The impact of technology on financial services allows the customer to avail of easy digital transactions.
How does technology affect the financial industry?
The arrival of smart analytics helps the financial industry to understand its customer better and provide services accordingly.
What are the new financial technologies?
Blockchain, Robotics, Artificial Intelligence, Cryptocurrency, and many more.
Is Chime a legit company?
Yes as they’re FDIC insured, so it’s a safe place to keep your money.
What are the top Fintech companies?
Square, PayPal, Goldman Sachs, Green Dot, MercadoLibre, and many more.
Do FinTech companies pay well?
Yes, the USA is the top earner making $169,000 annually.
Is Fintech a good career?
Fintech would be considered a good career opportunity for people who are seeking to build their career in the field of finance domain.
Which is the largest Fintech company in the world?
Ant Financial.
How do banks use Fintech?
Banks are using fintech technology in the form of mobile banking apps.
What are Fintech tools?
Artificial Intelligence, machine learning, mobile computing, and more enable borrowers to access funding.
In the era when cryptocurrencies have taken up the centerstage of the new dawn of the digital economy, there are a plethora of options available to you to invest. However, it is extremely important to be aware of the cryptocurrency that you are planning to invest in and its future implications. It is mainly because of the fact that the world of investment is full of uncertainties and with great rewards come greater risks. In this article, a cryptocurrency named Stellar Lumens is scrutinized to come to a conclusion whether it is a good investment or not.
Stellar is an open-source network for currencies and payment where it is possible to create, send and trade digital representations of all forms of money—dollars, pesos, Bitcoin and what not. It was incubated in 2014 and was launched in 2015.
It aims to bring together all of the world’s financial systems under a single network. They have designed it in a way that is suitable for the users in developing countries as well. It had added to Stellar’s popularity significantly.
The decentralised network of Stellar is spread across multiple servers like any other platforms that makes use of blockchain technology. It has no single owner, but is owned by the public.
What is unique about Stellar?
It uses blockchain technology to complete its transaction. Being a decentralized network, it handles millions of transactions every day. What makes Stellar unique is its compatibility with the requirements of a common man.
Unlike traditional blockchain based systems like Ethereum and Bitcoin, Stellar is faster, cheaper and energy efficient. Its end user experience is more like that of cash.
Lumens are the native digital currency of Stellar. It requires only a small amount of Lumens to initiate the account and transactions. After that, the platform does not give preference to any one currency.
Being a decentralized network any kind of currency can be used through Stellar. Its primary intention is to make people’s savings more useful and accessible. It has a built in system which converts money sent through Stellar into desired currency.
At first the currency is automatically converted to Lumen and then if the recipient is an India, it is converted to India rupee.
How does Stellar work?
To cover its basic intention to track ownership, it uses ledger where a network of independent computers cross check each other’s works. Its lack of central authority makes it impossible to tweak the numbers and transactions in Stellar.
Its efficient algorithm called Stellar Consensus Protocol (SCP) overlooks the process and ensures that everything is in sync. The Stellar ledgers store two important pieces of data for each account. First, how much they own and secondly, what do they plan with this money.
It is the Nodes that check the ledger and run the core Stellar software. The agreement between the nodes when you initiate a transaction completes it. Hence, Stellar networks are verified by multiple nodes. Their well-documented functions help you proceed with your transactions in ways that you prefer. You are even capable of issuing assets.
Why is Stellar a good Investment?
Growth of Stellar has been phenomenal in 2021. It has returned 424.4 percentage year to date. Analysts who have studied the growth of stellar for a long period of time do not see it slowing down in the near future.
Stellar Growth Chart
Its current affordable prices and potential to improve makes it ideal as an investment destination. Another reason why Stellar is a good choice for investing is because of its unique upgrades that augments the flexibility of Stellar core and customer based applications.
Furthermore if Stellar encourages further decentralized applications in its platform it will result in massive increase in the value of Stellar which will make it further profitable for the people who invested in it.
Another reason why it is preferred amongst prospective investors is because of its simple and low-cost transactions and through it, the accessibility to the global economy.
Before you move on to invest large amounts of money in Stellar, remember that there are lots of risks that are associated with such investments. While it provides great incentive and returns also expect that there will be potential risks although lumens has been faring well till date.
Be sure to analyze your financial stability before making any investment moves. Stay up-to-date with the information regarding Stellar by also having sound information about current market and trends.
Where to Buy Stellar Lumens?
Apart from purchasing Lumens directly from the Stellar platform the following are a few places from where you can purchase Lumens
Bitfinex
Binance
GMO Coin
NovaDAX
Coincheck
Bittrex
Upbit
Huobi
Coinbase
Kraken
Godex
FAQ
Can I buy stellar on Coinbase?
Yes, you can buy, sell, convert, send, receive, or store XLM on Coinbase.
Is Stellar energy efficient?
Yes, Stellar is more energy efficient than Bitcoin based systems.
Who is the founder of Stellar?
Jed McCaleb is an American programmer and entrepreneur who founded Stellar in 2014.
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Who doesn’t love money? We all love money and the term has got a broad range of uses. Experience is an important thing which is loved a lot by the consumers. Who does not desire a good roadmap to better payments? Yes, we all do!
Ripple has got a RTGS system, remittance and a currency exchange network. It helps its users to instantly move money in any corner of the world. Several financial institutions choose Ripple to provide their customers with good payments experience. Read the Ripple success story below.
Ripple is a payment system that provides a frictionless experience to its users. It is used to send money around the world using the help of blockchain. It enables financial institutions and banks to directly transfer money with each other globally.
Ripple – Founder and Team
Chris Larsen, Executive Chairman and Co-founder, Ripple
Chris Larsen is an angel investor and a business executive. He is known for co-founding technology startups. He was born in 1960 in San Francisco, CA, USA. He is an American and his net worth is $4.6 billion. He completed his education from San Francisco State University and pursued a MBA from Stanford Graduate School of Business. He is the Executive Chairman and Co-Founder at Ripple. He was also the Co-Founder and CEO of Prosper Marketplace. He began his career as a Co-Founder and Chairman at Eloan.
Ripple – Business Model
Ripple Logo
Ripple provides a carefree global payments platform to its users. It connects payment providers, corporates and banks to send money globally.
Ripple is a private company. Companies like Ripple raise funds through institutional investors and venture capital. The revenue model is based on skilled services. It is a protocol designed for quick transfers between the two parties. Ripple makes money by licensing software, making partnerships with technology integrators, integrating software and technical support.
Ripple has raised a total amount of $293.8 million in funding.
Date
Transaction Name
Money Raised
Lead Investor
April 3, 2020
Secondary Market
–
–
December 20, 2019
Series C
$200 million
Tetragon Financial Group Limited
May 12, 2017
Corporate Round
$200,000
–
April 30, 2017
Secondary Market
–
–
September 15, 2016
Series B
$55 million
SBI Investment
September 15, 2016
Secondary Market
–
–
October 6, 2015
Series A
$4 million
Mouro Capital
May 19, 2015
Series A
$28 million
IDG Capital
November 12, 2013
Seed Round
$3.5 million
Core Innovation Capital
May 14, 2013
Seed Round
$1.4 million
–
Ripple is funded by 36 investors. It has got 5 lead investors. Adam Morley is the recent investor.
Ripple – Competitors
The top competitors of the company are Bitcoin.com, Dogecoin and Litecoin.
Bitcoin.com is one of the top competitors of Ripple. The company is headquartered at Frigate Bay, St. Kitts. It was founded in 2008. It works in the Transaction Services industry.
Dogecoin is also one of the top competitors of Ripple. It was founded in 2013. It is a private company headquartered at Frostviken, Jämtlande Iän. It works on the Internet Software industry.
Litecoin is the #3 competitor of Ripple. It was founded in 2011 and is headquartered at San Francisco, CA, USA. It operates on the Internet Software field.
With RippleNet, customers can quickly access new markets, expand their services and deliver the best customer experience in global payments today. With a single connection, customers can access the best blockchain technology for global payments, payout capabilities in over 40 currencies.
What is the difference between Ripple and XRP?
Ripple is a technology company that provides the most efficient solutions for sending money globally through a robust, global payments network, RippleNet.
XRP is a digital asset independent of Ripple, and the XRP Ledger is the open-source technology behind it. The XRP Ledger was created independently from Ripple and thus, Ripple does not control or own it.
Who is the Founder of Ripple cryptocurrency?
Chris Larsen is an angel investor and a business executive. He is the Executive Chairman and Co-Founder at Ripple.
Who is the CEO of Ripple Network?
Brad Garlinghouse is the CEO of Ripple Network.
What does Ripple provide to its users?
Ripple provides a carefree global payments platform to its users. It connects payment providers, corporates and banks to send money globally.
What is XRP? How do I trade XRP?
XRP is an open-source, decentralized digital asset built for payments. XRP trades on over 100 markets and digital asset exchanges worldwide. If you’ve already traded XRP and have a question about your trade, then please reach out to the exchange directly. If you are looking for exchanges to trade XRP, you can search for exchanges on your Internet browser.
Ripple – Conclusion
Ripple is a technology company that provides the most efficient solutions to send money globally using the power of blockchain technology. Their vision is to enable the world to move value like information moves today—the Internet of Value.
Ripple is the only enterprise blockchain company today with products in commercial use. Their global payments network, RippleNet, includes over 300 financial institutions across 40 countries and six continents. They work with regulators, governments and central banks—not against them but with them to improve the way the world moves money.
