Most similar to the incumbents are digital banks, sometimes called neobanks. These banks offer banking services typically by mobile app. They are unencumbered by legacy systems and physical branch networks and can use newer technologies, potentially making them more flexible and responsive to consumer needs.
Then there are fintech firms, many of which are using technology to address particular frictions and gaps in the payments market. Online payments, point-of-sale technology and cross-border payments are all areas in which fintechs are innovating. And, finally, there are the large global technology companies that can leverage their already extensive networks to offer proprietary closed loop payment services.