Today we bring you eighteen (18) catch phrases in the fin-tech space whose meaning you probably do not know.
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1) Fin-tech sandboxes – A testing program for novel business models that are not covered by existing regulations is referred to as a “sandbox.” This enables businesses to evaluate their new product in a representative setting before receiving a full license.
2) Gazelle company – A business is considered a gazelle if its annual sales growth is at least 20%. Gazelles are well renowned for both their rapid employment growth and their increasing sales.
3) ICO – A form of fundraising that makes use of cryptocurrencies is an initial coin offering (ICO). Companies or projects offer investors cryptocurrency or “tokens” in return for cash, with the expectation that the token would increase in value over time. It resembles an initial public offering (IPO) slightly .
4) Internet of Things (IoT) – The Internet of Things, or IoT, is a network of connected gadgets, machines, and other items. A unique identifier (UID) on an IoT-enabled device enables data transfer over a network without the typical need for human-to-human or human-to-computer interaction.
5) Merchant aggregator – A merchant aggregator, also known as an aggregator or a payment aggregator, is a company that offers a service that enables businesses to accept payments without first opening a merchant account. Aggregators essentially act as payment processors for retailers. Examples of payment aggregator companies includes; Stripe, Adyen, Square, PayPal e.t.c.
6) Multi-sided business model – A business that expands its primary user base while producing income from a different client base is said to have a multi-sided business model, also known as a two-sided market. Social media platforms are an excellent illustration of this type of business because its primary user base utilizes them for free while businesses pay to market their goods or services to the user base.
7) Open banking/PSD2 – The technique of securely exchanging financial data in a manner that the client approves of is referred to as “open banking.” Open APIs are used to do this, giving developers the ability to create applications and services. This enables customers to exchange information with authorized providers, including challenger banks, other banks, and budgeting apps, about their spending patterns and payment history.
8) P2P transactions Peer-to-peer (P2P) transactions involve the online transfer of money from one person’s bank account or credit card to another person’s bank account, most frequently via a mobile phone. The use of person-to-person payments has increased as online banking and e-commerce have grown in acceptance and popularity.
9) PaaS – Platform as a Service (PaaS) is a cloud computing architecture where a third party company offers a platform and environment to an organization so they may develop online apps and services. PaaS provides developers with the resources they need to deploy code effectively. They are made to prevent the expense and difficulty of creating and maintaining the platform on your own.
10) Payment gateway – For an offline or online business, a payment gateway is a platform or service that safeguards customers and detects fraud. An application or website’s payment information is securely sent by a payment gateway to the payment network for processing and authentication before the website receives the response.
11) Split payment – Split payment is a multiple-payment method that enables the purchase of products or services using more than one payment method, such as using a debit card and cash. Split payments are commonly accepted in stores by retailers. They are, however, infrequently accepted for internet transactions.
12) PropTech – The application of technology in the real estate sector is known as property technology, or PropTech. It describes any technology developed in response to a challenge or opening in the real estate sector. A good example of this is the use of virtual and augmented reality by Proptech startups to reshape real estates. Examples of tech companies transforming real estates using VR and AR technology are; VirtualApt this proptech startup, has recorded over 300 percent increase for new building lease ups as a result of the use of VR and AR technology. There is also Matterport that has raised $48 million at a pre-money valuation of $325 million, and has developed a full platform to capture, create, search and utilize 3D imagery.
13) Seed Funding – The initial cash utilized to support a new start-up company during its debut period is known as seed money or seed capital. Seed capital is typically obtained in exchange for an equity stake in the startup company and might come from an entrepreneur’s personal resources, an individual investor, or a company.
14) Series A funding – A startup company may elect to choose a Series A funding when they have a history of reliable revenue, a loyal customer base, and other performance metrics. The first round of funding beyond the seed stage is known as series A funding, and it occurs when the entrepreneur has created a business strategy that will make money over the long term. Because it is the initial round of fundraising, it is typically the first time that a firm offers ownership to outside investors.
15) TES – A company can be referred to as a “technology enabled service” if it uses and produces technology, whether it be in the form of hardware, software, or physical infrastructure, which is designed and arranged into a service offered to an end-user client. A TES employs technology to improve the services it offers. Instead of labor, technology serves as a TES’s main input.
16) Tokenisation – Tokenization is the process of replacing sensitive data with one-of-a-kind identification tokens, such as words, phrases, or symbols. Without compromising the data’s security, this procedure keeps all of the sensitive information. It can be used to increase the security of e-commerce transactions without having to pay extra for government regulation and industry compliance.
17) Unicorn company – A start-up business with a valuation of more than $1 billion is referred to as a “unicorn.” Similar to the mythical creature, it alludes to how uncommon it is for a corporation to reach this price. Recently, companies with a valuation of more than $100 billion have been referred to as “super-unicorns” or hectocorn. Examples of African startups that have reached the unicorn status are; Jumia, Interswitch, Opay, Chipper Cash, Andela e.t.c.
18) VC (Venture capital) – A financial boost given to start-up enterprises and small organizations with what seems to be a strong potential for growth is known as venture capital (VC). In exchange for equity in the business, investors, investment banks, and other financial institutions frequently provide venture capital.
We trust that this has added to your wealth of knowledge in the fin-tech area, you can visit our website for more details and follow us on our social media handles for news updates and informative articles.
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