Traditional financial technology and cryptocurrency have grown much closer in the last few years. A dispute between these factions has evolved into a collaborative endeavor that is contributing to the increasing popularity of digital assets. Fintech companies now see crypto as a path for new financial ideas instead of competition.
It is more than simply a case of new technology. It is transforming the way people connect with money, savings, and financial help. The days when cryptocurrency was only for tech fans are ending, thanks to the simple and regulated ways fintech offers its services.
How to Remove the Blocks
It used to be very hard for most people to handle traditional cryptocurrency exchanges and wallets. Both interfaces were challenging to use, security was tough, and it required a lot of learning. Most people didn’t care for the challenge of dealing with private keys, understanding blockchain confirmations, or learning how to move their funds from one wallet to another.
Fintech companies looked at the problem in a new way. They realized that for many people to use crypto, it should be easy, safe, and fit well with their usual money habits. These companies didn’t limit themselves to crypto—they made the entire experience easier for people to use.
When PayPal introduced crypto in 2020, it wasn’t the same as another exchange coming online. With the app already used by so many, people could now get Bitcoin and other cryptocurrencies with just a few phone clicks.
There were quick and easy-to-see results. After a few months of big fintech companies adding crypto services, the number of people trading crypto went up, and the user base became much more diverse. Those who had never thought about Bitcoin were using apps they already used to try out small buys.
How Infrastructure Is Changing
Fintech companies have played a big role in creating the support that makes it possible for people to use crypto. This isn’t limited to making surfaces look nice—it’s about overcoming key issues that kept many people from using technology.
The introduction of custody services is one of the biggest achievements in blockchain history. Fintech companies designed custody solutions that fit with traditional finance rules.
How payments are processed has been just as important. Because you can easily trade regular money for crypto and vice versa right away, crypto is now practical for shoppers. It allows people to buy with crypto without worrying about how much it costs or how much they’re getting.
Fintech companies make it much easier for others to navigate the complex world of regulation. Companies in this industry are familiar with compliance, have connections with regulators, and learn how to follow existing financial rules. Adding crypto features helps guarantee that crypto services are dependable and compliant with regulations since they contribute their regulatory expertise.
Mobile-First Approach
Thanks to fintech, the rise of crypto and smartphones has happened side by side. Mobile apps have lowered the barriers to cryptocurrency and now allow people to use blockchain with simple swipes on their screens.
Look at the changes in how Bitcoin is bought. Not long ago, you had to browse dubious websites, wait for the money to move, and hope your exchange wouldn’t get hacked the moment it was left unattended. Getting started with fintech today involves no more than installing a dependable app, confirming your identity in minutes, and buying crypto with a debit card.
Because people are often familiar with apps for money, a mobile-first strategy best serves them. Many fintech apps include things like investment tracking, achievement badges, and ways to interact with others; crypto investing is now seen as more accessible.
It’s not just about buying and selling that makes things easier. Users receive automatic recurring purchases, notifications about price changes, and educational information; crypto investing has become easier and more frequent for them.
Integration of the main financial sectors
A big advantage fintech has given to crypto is making digital assets part of regular financial products instead of something unique.
When traditional stocks, bonds, and savings are added to the same app as crypto, crypto becomes much less frightening and hard to understand. By viewing their crypto holdings, users can see how they fit into their total financial picture, making everything easier to handle.
It’s not just the user interface that brings these systems together. Now, a number of fintech companies allow users to take out loans using their crypto without needing to sell their digital assets. By blending conventional loans with crypto, this product makes new applications that attract regular consumers.
Integrating taxes with reporting has made a big difference. A big challenge for crypto users has been managing their transactions for tax reasons. Many fintech firms now produce required tax forms and link with popular tax applications. This reduces a big obstacle that was holding people back from using cryptocurrencies.
Some platforms have even ventured into more novel integrations, with crypto casino platforms emerging as an unexpected bridge between traditional gaming and digital assets, showing how crypto is finding its way into various entertainment sectors.
How volatile are prices, and how much do people know about them?
Bitcoin price trends have always been a double-edged sword for mainstream adoption. On the positive side, sharp price rises attract more people to the world of cryptocurrencies. However, those who prefer traditional investments may be scared off by the constant changes in crypto.
Fintech companies have overcome this problem by teaching consumers and creating new products. A lot of these platforms provide learning materials that teach users that volatility is typical in emerging asset classes instead of showing something wrong with them.
Users now find dollar-cost averaging useful, thanks to its ability to help them buy small amounts regularly, which helps them avoid big swings in the market. This way, crypto investing feels less stressful to people who are unsure about trying to predict market trends.
A number of fintech companies now provide crypto savings products that give digital assets the same kind of yield as traditional savings accounts. These products encourage users to see crypto as a way to build their finances, rather than only as something to gamble on.
What’s Coming
Fintech and crypto are working together in new ways, and the future is obvious. As regulations are set and technology improves, there will be even greater merging between classic financial services and digital assets.
The next big area for fintech to play a role is with CBDCs. As governments consider digital forms of their currency, fintech companies are set to act as the main bridge between these new assets and the public.
Additional infrastructure improvements are also happening. Crypto is becoming more practical for regular use because it settles faster, charges less, and different blockchains now talk to each other more easily. A lot of these changes are being led by fintech companies, who want to make the user experience as good as it can be.
The most successful fintech companies will probably see crypto as a key component of the future of finance. If companies can merge finance and crypto, keeping things easy and secure for most users, they will shape the future of digital assets for everyone.
The changes are happening now. Not long ago, crypto being used by the mainstream seemed impossible, but now it’s happening because fintech lets everyone use complicated tech.
