Lagos Emerges as Equivalent to New York in Terms of Payment-focused Tech Startups Hub
In the ever-evolving landscape of cross-border payments, several trends have emerged since the start of 2022, with a focus on digital innovation and expansion into emerging markets.
### Emerging Trends
1. **Digitalization and Contactless Payments**: Innovative startups like Qerko are leading the charge in contactless payment solutions, prioritizing efficiency and customer convenience. This trend is crucial for cross-border payments, as it minimizes transactional friction and enhances user experience.
2. **Integration of Emerging Technologies**: Advances in AI and blockchain are being harnessed to improve security, reduce costs, and increase transaction speed. This integration is particularly appealing in emerging markets where traditional banking infrastructure may be limited.
3. **Global Expansion**: Many startups are venturing beyond their home markets, targeting regions with high growth potential. For instance, Qerko plans to expand into the EU and US markets following its successful launch in the Czech Republic.
4. **Focus on Emerging Markets**: Startups are increasingly targeting emerging markets due to their high growth potential and low penetration of traditional financial services. This includes countries in Asia, Africa, and Latin America.
5. **Regulatory Compliance**: Ensuring compliance with international regulations and local standards is crucial for cross-border payment startups. This includes adherence to anti-money laundering (AML) and know-your-customer (KYC) laws.
### Cities with the Most Startups
While specific data on cities with the most cross-border payments startups is not provided, key hubs often include major financial centers and tech innovation hubs:
- **New York, USA**: Known for its vibrant fintech ecosystem, New York is home to many startups. - **London, UK**: A major financial hub, London attracts a wide range of fintech startups. - **Singapore**: This city-state is a leading fintech center in Asia, with many startups focusing on cross-border payments. - **Prague, Czech Republic**: As demonstrated by Qerko, Prague is also a rising hub for fintech innovation in Europe.
### Emerging Markets
Key emerging markets for cross-border payments startups include:
- **Southeast Asia**: Countries like Indonesia and Malaysia have seen significant growth in fintech adoption. - **Africa**: Nations such as Nigeria and South Africa are witnessing rapid expansion in digital payments. - **Latin America**: Countries like Brazil and Mexico offer vast opportunities for fintech innovation.
These regions present opportunities due to their growing middle-class populations and increasing demand for digital financial services.
Notably, among all companies founded since 2022, Lagos, Nigeria, accounts for 7%, making it the second city with the most cross-border payments startups, following London, UK. Lucy Ingham, Editor-in-Chief and Head of Content at the platform, noted that Lagos is emerging as a key global payments hub.
FXC intelligence found that many payments startups focus on the use of cryptocurrencies in payments. According to Lucy Ingham, the future of payments is expected to become more geographically diverse, moving away from Europe and North America.
This shift in the geographical distribution of cross-border payments startups underscores the growing importance of emerging markets in the global financial landscape.
The integration of emerging technologies, such as AI and blockchain, in cross-border payment startups is essential, especially in emerging markets where traditional banking infrastructure may be limited, strengthening digital innovation.
Qerko, a leading startup, is venturing into the EU and US markets following its successful launch in the Czech Republic, signifying a focus on global expansion in the cross-border payments industry.
