On November 11th, 2021, the Rize Digital Payments Economy (PMNT) began trading on the London Stock Exchange. PMNT seeks to invest in companies that stand to benefit from the increased adoption of non-cash and digital transaction channels, including online and digital payments, digital wallets and cryptocurrencies.
The global payments landscape is transforming rapidly. A surge in online and mobile commerce among consumers and businesses is generating unprecedented levels of digital payment transaction volumes globally.
Business acceptance of contactless payments, and increasingly, consumer adoption of alternative payment methods is causing a decline in the use (and by extension, the role) of cash. In many emerging markets, digital wallets have already eclipsed cash, and created entirely new digital payment ecosystems.
Parallel payment rails are also being developed, most notably with Decentralised Finance (DeFi), through digital currencies, blockchain and cryptocurrencies. This new architecture has the potential to shake the very foundations of our globalised payment networks, which have underpinned the financial economy for much of the last century.
With system-wide disruption, key stakeholders are now developing digital-first payments technologies, software and processing solutions and infrastructure and services that will lay the foundations for the 21st century digital payments economy. This economy will include new modes and form factors that are better suited to our digital lifestyles and will also help broaden the surface area of financial services across new markets and untapped populations. By putting bank accounts directly in our pockets – via digital wallets – this economy will create better experiences, and bring ease and flexibility to our financial lives while improving access and reach as well.
As the digital payments ecosystem grows over time, spurred by the ongoing FinTech revolution, we expect a new economy of companies to emerge that will define and enable the financial services of tomorrow.
Related ETF
PMNT: Rize Digital Payments Economy UCITS ETF
References
Euromonitor International, “Euromonitor’s Classification for the Digital Payments Economy”, Page 4. Available at: https://europe.ark-funds.com/wp-content/uploads/2021/11/Euromonitors-Classification-for-the-Digital-Payments-Economy.pdf
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