What is FinTech?

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Sander Kamstra July 9, 2024
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The word ‘FinTech’ is now everywhere in the financial world. But what does it actually mean? And what benefits does it bring for you? We explain it on this wiki page.

Meaning of FinTech

FinTech is an American term that is a combination of two different words: ‘Financial’ and ‘Technology’, or financial technology. FinTech companies create solutions and applications that make paying and receiving money faster, better, and easier. The time when we still pay with cash and bring money to the physical bank is coming to an end. This form of payment is gradually being replaced by online payments, QR codes, and payment requests. In this way, FinTech companies accelerate, simplify, and secure payments for businesses and consumers.

Benefits of FinTech

Often you don’t even realize it, but FinTech is increasingly changing our lives. The world is changing, and we are changing with it. And this brings many benefits.

1. Automated payments

Payt decided to tackle the way companies get paid differently. Previously, entrepreneurs would call and email their customers to get outstanding invoices paid, and large corporations had entire accounts receivable departments to handle this. Nowadays, that is no longer necessary. By automating the process where possible and keeping it personal where it needs to be, companies (large or small) get paid much faster and better. And that with less work, fewer worries, and more control. Customers can easily pay their invoices with various (online) payment options, such as iDEAL, a QR code, PayPal, or direct debit.

2. Keeping your cash flow in check

When your customers do not pay (on time), you will notice this in your liquidity and cash flow. In the long term, this can also have major consequences for your company. Therefore, you want to keep your cash flow and liquidity as stable as possible. By using FinTech, such as Payt’s software, you can respond well to this. Firstly, you can continue to communicate with your customer at the invoice level. This way, you always know why your customer is (not fully) paying the invoice. Secondly, you can automatically arrange a payment plan. This allows you to receive parts of the outstanding invoice in installments, keeping your cash flow stable.

3. Convenience and more control

Most FinTechs operate online, allowing them to set up the work environment as efficiently and user-friendly as possible. In Payt, for example, you have a complete overview of your entire company on the dashboard. Here you can see what your outstanding balance is and in which phase outstanding invoices are. The software also indicates exactly where your attention should go. Reminders are automated, but you always retain control over the process.

Discover for yourself what FinTech can do for you. Book a demo below and experience how you will get paid faster and better.

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By Sander Kamstra

Sander, director and co-founder of Payt, has brought innovation to the industry with his passion for software and entrepreneurship.

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