A "BLESSING" OF UNICORNSI have done a review of various FINTECH companies in various FINTECH verticals and have made the determination that the digital payments sector has the highest margins.
For example, digital remittance has a 90% profit margin---maybe even a few points higher.
The advantage is a much lower G&A because there's no bricks and mortar footprint and a minimum workforce is required to manage the mobile solution.
Take a look at the expenses Western Union has to contend with given their bricks and mortar retail model.
Take at look at the wages they have to pay out.
As a consequence they suffer from compressed margins.
The same holds true for MoneyGram as well as Euronet Worldwide and Ria---all these companies despite their old traditional model are worth billions of dollars.
FGD is on to something special.
The digital sauce makes the cut that much juicier.
Also, no matter how you cut it, the fact remains that by the end of last year there were 39 fintech companies around the world with valuations in excess of $US1bn, including Xero, which offers cloud-based accounting software for small and medium-sized businesses and is the sole Australasian representative.
That’s a serious amount of value creation built around solid, revenue-earning businesses, as opposed to the blue sky of the dot.com boom in the early 2000s.
According to the tech advisory firm GP Bullhound, there is a “raft” of companies knocking on the door of a $US1bn valuation.
The Australian-7 hours ago
The rush to judgment about the disruptive power of
fintech is premature, given it's not even clear which part of the financial services value chain ...
researchmaniacs.com › Animals › What-i...
The collective noun for unicorns is the word you would use to describe a group of unicorns. We have identified the following word(s) that you could call a group of unicorns: blessing. Used in a sentence, you could say ...