Financial technology companies use software to deliver financial services more efficiently than traditional banks — including payment networks, digital lending platforms, buy-now-pay-later solutions, and embedded finance infrastructure. Visa and Mastercard operate the global payment rails that process trillions in transactions annually. Square (Block) and PayPal built consumer and merchant payment ecosystems. The sector is navigating a post-ZIRP era where higher interest rates pressured growth valuations and exposed credit quality risks in consumer lending.
Payment volume growth and cross-border transaction mix are key for Visa/MA. Watch BNPL delinquency rates and provision builds at Affirm. Merchant acquiring spread compression signals competitive pressure. Crypto exchange volume drives significant Coinbase revenue.