London Emerges as World Leader in Payment Startup Innovations, According to Fresh Data
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The global cross-border payments landscape is evolving, with key cities across the world playing significant roles in this dynamic industry. Here's a roundup of some notable findings based on recent research:
Emerging Cities in the Cross-Border Payments Space
Several cities, particularly in Africa, Latin America, and Southeast Asia, are making their mark in the cross-border payments industry. New York and Lagos, for instance, each hold a 7% share of the market for new cross-border payments startups since the beginning of 2022.
The Rise of San Francisco and Latin American Fintech Hubs
San Francisco, California, USA, is a prominent player in the cross-border payments industry, with Ripple Labs headquartered there. Ripple, a major player in cross-border payments, specializes in blockchain-based solutions for fast and low-cost international transactions.
Meanwhile, cities in Latin America, such as Montevideo, Uruguay, are also making a significant impact. Montevideo, as dLocal's base, is playing a strategic role in expanding cross-border payments into emerging markets like the UAE, Turkey, and the Philippines.
The UK's Position in the Cross-Border Payments Industry
Despite Brexit, London continues to hold a strong presence in the cross-border payments industry. London hosts 15% of all cross-border payments startups founded since the start of 2022, suggesting that Brexit has not yet diminished its position in this sector.
The Role of Cryptocurrencies and Non-Crypto Companies
Many payments startups focus on the use of cryptocurrencies in payments, while others operate in the non-crypto sector. In Asia, the crypto share is 4%, and the non-crypto share is 8%. In Latin America, both crypto and non-crypto companies account for 6% of the total respectively.
The Impact on the Global Payments Industry
The rise of startups in fintech hubs like San Francisco and emerging markets such as Uruguay reflects a dual trend: leveraging advanced blockchain and real-time payment tech in developed markets and expanding payment access in emerging markets.
Partnerships integrating open banking and account-to-account real-time payments are signalling a shift towards more efficient, transparent, and inclusive cross-border transactions. Cross-border startups are also catalysing financial inclusion by enabling faster, cheaper settlements in new regions.
Future Trends and Analysis
While precise city rankings for startups founded strictly since 2022 are unavailable, San Francisco and Latin American fintech hubs like Montevideo are key players. This geographical distribution fosters a more diverse, efficient, and inclusive global payments industry by combining advanced tech innovation with broader market outreach.
If more detailed or updated startup location data becomes available, further analysis could pinpoint newly emerging centers since 2022 specifically.
Editor's Note
Lucy Ingham, Editor-in-Chief and Head of Content at our platform, stated that London's strong position in the payments space is not surprising, but the size of the gap with other cities was unexpected. Our platform has published a deep-dive report into cross-border payments startups, offering a comprehensive analysis of this dynamic industry.
Businesses in San Francisco, particularly Ripple Labs, are utilizing technology to specialize in fast and low-cost international cross-border payments, contributing to the dynamic industry. Furthermore, cities like Montevideo in Latin America, being the base for companies like dLocal, are strategically expanding cross-border payments into emerging markets such as the UAE, Turkey, and the Philippines, demonstrating the impact technology has on business and finance.
