3 Biggest Fintech Innovations of the Century

By TechFunnel Contributors - Last Updated on September 9, 2020
The article gives the fintech innovations in the 21st century

Fintech innovations flooded the 21st century and as time goes even more novelties are incorporated in our everyday lives. The financial sector has been impacted notably because of these innovations and various startups are coming up with new ideas to make life easier for consumers. In this article, we will talk about the 3 biggest Fintech innovations of the 21st century.


Blockchain technology could be considered as one of the greatest achievements in the 21st century. It is a way to create a digital inventory of data that can be used to record and track any kind of information, from medical records to elections.

What is so revolutionary about this when compared to traditional data management from a single location, such as banks, local governments, or government? The main difference is decentralization.

The term “distributed digital ledger” is often used among fintech specialists. It is distributed because data is consistently deployed across a vast network of computers located around the world.

What fundamentally changes the state of affairs is the fact that there is no need for a third party to participate in the process. Now, if you run any business, you need to rely on reliable intermediaries in the form of banks or lawyers, and this is time and money.

In the abstract, this is a kind of table, for example, in Excel, containing information about transactions. Moreover, each user can see this information but has no right to make any adjustments to it.

Such a set of data consists of blocks, each of which contains information in digital form, in our case we are talking about transactions collected in a chain using encryption. Each new transaction, regardless of its size, turns into a new hashed cluster consisting of a unique set of characters and numbers, created according to a specific algorithm. Further, the created data packets are added to the chain as transactions are created, and now each subsequent block refers to the previous one, thereby creating a distributed sequence.

As soon as information is added to the chain, it becomes available for public viewing and can no longer be changed. The main attraction of the technology when used in cryptocurrencies lies precisely in the immutability of blocks.

Blockchain can also be useful in Forex. The technology can lead to quicker transactions and transparency. It is no more surprising that brokers are actively incorporating cryptos as a way of trading and according to XM review here Bitcoin trading has become one of the most popular activities in recent years.

How does blockchain technology work

A number of events must occur before a block enters the chain:

  1. The transaction must be verified. Unlike classic transactions, which are approved by the bank or the payment system that issued the card, in the blockchain, transactions are confirmed by a network of computers. Moreover, such networks usually consist of thousands of machines, and sometimes millions, scattered around the world.
  1. After the transaction has been verified, the information is sent to the block. It contains the date, time, amount, and digital signature of both parties.
  1. The block receives a unique encrypted identification code, as well as a hash of the previous packet added to the chain. After hashing, it can be added to the blockchain.

( Also Read: Fintech Trends that Will Transform E-Commerce in 2020 )

Apple Pay

It is not a wonder that Apple is a leading company in innovations. Apple Pay is a payment system that allows you to pay for goods in stores by simply holding your Apple mobile phone near the terminal.

The system works using the NFC protocol, so you can pay only on those terminals that support contactless payment. The contactless payment system is available for older iPhone 6 models, including the iPhone SE. This service is also available for Apple Watch. Therefore, if you have an iPhone 5, 5s, or 5c but you have a smartwatch from Apple, you can set up payment through the watch using your smartphone.

To link a payment card to your iPhone, you need to use the Wallet app. Next, you should enter your card details. If the cards were previously linked to your iTunes account, the system will pull them up by default. Additionally, you can add up to 7 payment cards.

You can also make purchases over the Internet, you need to use the Safari browser. The confirmation will also go through your smartphone or smartwatch. You can also pay with Apple Pay inside some apps.

Can Apple Pay be hacked?

This question is very relevant. Apple Pay hacks have not been reported. When paying, the smartphone does not transmit any data about your cards to the terminal. Instead, it exchanges a token, a one-time-key that is generated for each individual payment transaction. Even if we assume that the attacker managed to intercept the token, he will not be able to reuse it.

Apple Pay doesn’t even save the card number itself. It immediately binds to the card the account number, which is located on the protected microcircuit. It won’t upload to servers or iCloud. This provides additional security for making purchases on the Internet since you do not need to enter card details into the browser, which can be intercepted and stolen.


PayPal is a financial service provider that makes free money transfers and payments for online purchases possible. In fact, in the form of a PayPal account, you get a digital wallet at your disposal, with which you can make online payments. The money is debited from your account later. This can be useful primarily in such cases when the order does not reach the seller.

Simply put, PayPal is a virtual wallet that, unlike a real wallet, you can only use it online. PayPal transfers are very common in the online payment environment and are therefore very often accepted as a form of payment.

PayPal offers a very high level of security as you do not have to provide any details about your bank account when paying. Opening an account and making money transfers is quick and easy.

Every time you pay, you receive a notification to your email address so you never lose sight of any of them.

You can even use PayPal functionality on your smartphone. This is how PayPal transfers work

Transactions that are made through PayPal are entirely done through internal PayPal accounts. This has the advantage of completely hiding your bank account or credit card information from the recipient of the funds.

Similar to its parent company, eBay, PayPal also offers so-called buyer protection for online purchases that are paid using PayPal. For example, if you receive the wrong item or the purchase never reaches you at all, you can use PayPal’s Buyer Protection service. Another plus: in extreme cases, PayPal promises to refund the money spent from your account on all payments that you allegedly did not approve of.

TechFunnel Contributors | TechFunnel.com is an ambitious publication dedicated to the evolving landscape of marketing and technology in business and in life. We are dedicated to sharing unbiased information, research, and expert commentary that helps executives and professionals stay on top of the rapidly evolving marketplace, leverage technology for productivity, and add value to their knowledge base.

TechFunnel Contributors | TechFunnel.com is an ambitious publication dedicated to the evolving landscape of marketing and technology in business and in life. We are dedicate...

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