Hey mate.

My opinion and observations? The short answer is nothing. No moat except size. The entire industry is a big roll-up activity always moving and surging about like the ocean.

The layers on payment networks and payment processing and payment clearing and payment reconciliation is vast. Lots of old tech and paper processes to 'synergise' and new tech to cover the old tech or replace the old tech completely.

The whole payment industry is ripe for disruption, not just once, but always. Therefore it is not a Highlander scenario, there can successfully be more than 'one'.

showing your age with that reference, red dog!

hahahahaha

A classic movie! To be enjoyed by all generations!

Red dog thank you very much for the reply mate. Much appreciated.

Hey no worries.

My response is by no means the definitive response. Happy for others to chime in also!

Agreed there will always be a number of players in this space.

However I'm leaning towards the big guys swallowing up the smaller ones - even as an 'amicable buyout' agreement. Up until recently the big banks have had to deal with disenfranchised customers turning away in droves, opting for the 'more friendly' and up until recently 'increased functionality' options. But I think the tide is turning.....

• CBA, Macquarie have launched crypto platforms paving the way for a new future of payments
• BNPL space is no longer unique. Paypal/CBA etc all have their own versions. (I managed to apply for $1000 of BNPL through CBA in 10 seconds with two clicks; why would I bother completing a form with any other provider?)
• Westpac, CBA, NAB have increased functionality on their apps eg budgeting, credit card applications, open new accounts (with the 'testing' completed on Ubank and other sub-brands)
• NAB, CBA sponsor fintech startup hubs which they will probably integrate
• I would be surprised if the large retail banks don't move into offering other app-based platforms too.
• Medicare/healthfund claim space may be unique for now.... but probably not for long

I recently observed that CBA has launched a 'invoice creating platform' through netbank. Similar to paypal, they can help you track customer payments and send reminders once you've issued your invoice through their platform. I would not be surprised if they start developing rudimentary accounting systems on their business accounts for microbusiness eg expense categorisation, upload/storage of invoices (or perhaps electronic invoice straight from merchant). They already use optical readers to auto-populate payment information off a bill. Look out Xero, MYOB, Reckon !

These are observations and by no means an exhaustive list of players/movements in the finance space. I could not hope to keep up with all the changes! I'm sure many others on SM can add a lot more detail to this post.

It would be great to gather more information about what various fintech options are out there (both in the smallcaps and largecaps space). Appealing to the amazing SM community!