The Role of Payment Networks in Enabling Fintech Innovation

Fintech, short for financial technology, describes the trend of using of innovative technology to disrupt traditional financial institutions by creating new ways of making payments, managing wealth, issuing loans, providing insurance, and managing currency. While many Silicon Valley fintech startups have received significant media coverage, at the heart of this revolution are some of the financial industry’s most familiar names. In particular, the payment networks—the companies who provide the digital links that allow payments to flow between merchants, customers, and their banks—are leveraging their platforms to create a vibrant ecosystem for fintech innovation. Through their own internal solutions, as well as partnerships with others in the industry, they are improving consumer convenience, increasing payment security, and creating more economic value. ITIF hosted a discussion on the future of fintech and what policymakers can do to support these innovations with top business leaders from Visa, Mastercard, American Express, and Discover.