“Fintechs were recognized, but banks were recognized first,” Michael Del Grosso, managing director at Compass Point Research & Trading LLC, said in an interview.
Payment Methods
Even though Congress recognized early the need for fintech lenders in the PPP, no government infrastructure was in place for their participation from the outset, Pitts said. The fintech application form didn’t come until about a week after the PPP launched because the federal government had never qualified a fintech before.
Del Grosso said that the biggest win for fintechs promises to be long-term adoption of digital payment methods that have picked up momentum amid the pandemic. Consumers buying online and picking up in store, tap-to-pay and the decline of cash all may be here to stay even after the outbreak subsides, he said.
The crisis has “shined a light on how truly interconnected our world is and increased use of all things digital,” PayPal Chief Executive Officer Dan Schulman said in an emailed statement. There has never been a greater need for digital payments, he said.
“A huge amount of volumes are shifting to online, e-com and contactless,” Moshe Katri, research analyst at Wedbush Securities Inc., said in an interview. “The traditional banking model is going to continue to get cannibalized by fintechs.”
This article provided by Bloomberg News.