Fintech and payment startups have seen huge leaps in there valuation over the last few years. Stripe is an especially poignant illustration of this trend as it reached a 20 billion dollar valuation this September. Only a few years ago, 2014, Stripe was valued at 9 billion dollars, nothing to sneeze at, but that has since been totally eclipsed by the latest figures.
The trend is evident in other payment systems like Paypal Holdings Inc (NASDAQ: PYPL). During its initial product offering, Paypal Holdings Inc (NASDAQ: PYPL) was valued around 80 million USD, shortly after eBay Inc (NASDAQ: EBAY) bought the company for 1.5 billion dollars. Fast forward to today and the company is nearing 100 billion dollars in value. A massive mark up for less than a decade of time. Square Inc (NYSE:SQ) is another example, going public in 2009 and having a near 40 billion dollar valuation today.
In any case, all these great success stories show venture capitalists and investors are willing to bet on these companies, and subsequently pour in vast amounts of money. HadePay is one startup poised to take advantage of the trend. It is the only payment solution taking advantage of the entire payment sector and consolidating it under one app. There is a good chance its valuation will take a similar leap over the years.
The downside to the payment sectors success story is now the competition is increasing. Paypal Holdings Inc (NASDAQ: PYPL) clones rise and fall daily. To make it in these conditions a company will need to find it’s true niche rather than falling under the shadow of a bigger entity. HadePay’s unique solution is a great example of completely sidestepping the competition to create something unique, filling the gap between crypto and cash payments.
While startups are risky business overall, with about 75% of them failing (probably a low estimate), fintech startups seem to have a much higher success rate. The main reason these startups tend to fail has less to do with their model and more an issue of legalities, failing to adapt, or being at the mercy of competitors. When these issues are mitigated so is the risk.
Disclosure: Knifedag has a working relationship with ODP Solutions, Inc, and while ODP Solutions does not influence, edit, or compensate Knifedag to write specific articles, blogs, or to make comments or recommendations to use or invest in HadePay, Knifedag is compensated for overall business development and marketing tasks to bring awareness to the services and benefits of HadePay.
