“You have to, to serve these markets, re-imagine how money can be managed and moved because there’s going to be more change in the next five years in financial services than happened in the past 30,” Schulman told “Mad Money” host Jim Cramer.
Schulman pointed also out that
the person-to-person payment business is valued between $35 billion and $40 billion. In five years, its projected value is estimated to reach $335 billion. Similarly, “online digital payments today are about $3 trillion,” the CEO said. “By 2020, three years from now, it’s supposed to be over $8 trillion. And we’re a leader in that market right now with 218 million people using the platform, so we just got to keep delivering on what customers want, merchants want and to stay that market leaders.”
However, in China, almost 4,000 P2P platforms have closed or run into difficulties since 2011,
according to Yingcan Group. and Singapore’s Central Bank Chief warned fintech investors, Bloomberg reports.
I do see some collapse of the bubble in the fintech space, the central bank chief said. Some business models, some applications of technology are clearly overstretched, he said, citing some similarities with the dot-com boom at the turn of the century. That bubble popped in the early 2000s, erasing billions of dollars in market value from technology stocks. At some point in the current euphoria about fintech, there will be some reckoning of that sort, Menon said. But I do hope that it does not sweep away everything as it did in 2001, sweep away the good as well as the hype.