The WSJ canvases the market and finds that consumer-payments categories, which include startups like Square, continue to capture financial-technology funding. Another hot trend is known as fractionalization. All sorts of startups are allowing investors of all kinds to invest in asset classes that once would have been inaccessible.
So far, a handful of business categories continue to capture the lion’s share of fintech funding. One of the most visible has been consumer payments, where companies like Affirm Holdings, Block (the parent company of Square) and Klarna are shaking up the retail landscape. Want to buy a Peloton bike or the latest Apple device? These days, buy-now-pay-later businesses are teaming up with established brands to help shoppers spread payments over a few months. This model appeals to consumers because it is less costly and more transparent than store credit cards; businesses like the fact that it fuels sales growth.