2025 is set to be a year of remarkable transformations and cutting-edge innovations. As the market evolves, I had the privilege of sitting down with Alex Lapko, CEO of RozetkaPay, to delve into the intricacies of the fintech landscape, the challenges and opportunities that lie ahead, and the future of digital finance in Ukraine and the world.
Join us as we explore the industry’s trends and gain invaluable insights from one of its most influential leaders. This exclusive interview promises to uncover the strategies, innovations, and vision that drive RozetkaPay’s success and impact on the broader financial ecosystem.
Synthetic User Profiles: Personalization Opportunities
By 2025, it’s estimated that 85% of financial institutions will use AI-driven synthetic user profiles to enhance customer experience and personalize services.
Zee: Companies are swamped with customer data these days—from their purchases and orders to their likes and preferences. It’s a goldmine of information, but losing a customer after years of building their profile is a company’s worst nightmare. How can they prevent this?
Alex: Absolutely. The key is to offer an application that provides a lifetime account—something beyond just a single tool. Think about fintech solutions that incorporate a digital wallet, a marketplace for goods, delivery services, loan options, special loyalty programs, and so on. The stronger and more comprehensive the ecosystem, the better. Look at Allegro in Poland, Hepsiburada in Turkey, and WeChat in China—these are leaders already building such systems, and the trend is only growing. As companies accumulate more client data, losing a customer becomes even more detrimental.
Zee: Are we seeing similar efforts in Ukraine?
Alex: Yes, definitely. In Ukraine, companies are already working on creating similar ecosystems based on banking, retail, logistics, and more. Next year, we’ll likely see the results of these efforts. Globally, we’ve seen these systems already in action, so we want to make sure Ukraine’s not behind. And after all, people all over the world want to be known and understood. With the amount of data people share, this isn’t quantum physics anymore. Use those insights to offer them better products.
Neobanks
Neobanks are projected to capture 15% of the global banking market by 2025, with over 200 million customers globally.
Zee: Traditional banks are facing some new competition these days. Non-banking companies are now opening accounts for their customers and offering their cards. Why is this trend gaining traction, especially when physical cards aren’t as popular?
Alex: That’s a great question. While the physical card itself might not be trending, a mobile app with payment options is definitely a big draw. Customers love apps that provide personalization and special offers tailored just for them.
Zee: So why are non-bank companies diving into FinTech solutions?
Alex: It’s all about controlling the customer experience at every stage and saving on processing fees for their services or products. Take Walmart Pay, for example. It’s a seamless integration into the retail experience. Other examples could include taxis, post offices, beauty salons, and so on. Right now, these companies still partner with banks to provide such experiences, but with the rise of neobanks, we’ll likely see new players entering the market in the next 3-4 years.
Check out the article on digital wallets.
Cryptocurrency on the rise
Try as you might, but you cannot escape cryptocurrency. It was on the agenda even during the US presidential race. It’s been around for years and this trend is no longer “just a temporary thing.”
Right now, crypto is mostly used as a means of investment, not so much as a payment method. A few centuries ago, people invested in gold, and now they invest in crypto (although many people continue to invest in gold).
However, while it is still a digital currency, you cannot buy groceries at the store with Bitcoin. Why? Because cryptocurrencies are not regulated by law and it is not clear how to pay taxes on them. Therefore, governments are afraid that they will be unable to control it. What do we have as a result? The area continues to grow as a trend, but only in the gray area of economics.
What can be changed? Allow people to pay for goods using their crypto – this will increase the turnover of goods in the country, which will drive the economy. The money will go to manufacturers, distributors, and retailers, adding around 3% to the sales. Of course, this is easier said than done and it requires work to introduce the necessary law guardrails, but it’s certainly an option that’s worth attention.
The global cryptocurrency market is projected to reach $45.3 billion by 2025, with Bitcoin potentially trading between $75,500 and $150,000.
A revolution in GOVtech
Governments worldwide are projected to spend $1 trillion on digital transformation by 2025, with a significant portion dedicated to GovTech solutions.
Alex: The state really becomes a game changer here, setting the rules and driving innovations across the market. There are numerous government solutions in the world like e-Residence in Estonia, myObywatel in Poland, Login.gov in the US, and Diia in Ukraine. This creates a host of new opportunities for companies. Imagine a company needing to onboard a new client, approve a loan, or look up a tax report—these processes typically require mountains of paperwork. There are two ways to handle this:
- You can ask the client for all the necessary documents and spend time verifying each one.
- Or, if you’re a Ukrainian company, you can use Diia identification and complete the entire process in just a couple of minutes.
From my experience in FinTech, I see immense benefits when business and the state work together as full partners. This digital cooperation between private and public sectors simplifies life for everyone involved, making processes faster, more efficient, and far less cumbersome.
SoftPOS / Smartphone Terminal Technology
Zee: With so many small entrepreneurs entering the market, how significant is the idea of SoftPOS technology?
Alex: It’s incredibly significant! SoftPOS allows small business owners to transform their smartphones into point-of-sale systems using NFC technology. This means they can accept payments, issue receipts, and keep track of all their accounting records directly from their phones.
Both iOS and Android devices support this technology, and the market forecast predicts a 4x growth in the coming years. SoftPOS technology speeds up operations for small and medium-sized businesses by offering cost savings, flexibility, and improved security.
Considering that nearly everyone has a phone these days, using what you already have instead of investing in and maintaining a traditional cashier’s station is a fantastic advantage.
Market Size: The global SoftPOS market was valued at USD 255.4 million in 2022 and is expected to grow at a CAGR of 22.3% from 2023 to 2030.
Cross-border money transfer services
The number of B2B cross-border blockchain transactions is expected to reach 745 million by 2025, with Europe accounting for 466 million of these transactions.
Alex: Imagine you’re working in one country and you have an employee in another. You need to pay them, and maybe also pay local contractors, all while complying with local tax laws. Sure, you could use a traditional bank, but that comes with high fees, long processing times, and plenty of hassle. Or, take another scenario: you’re a YouTube content creator looking to monetize your videos and receive payments from different countries. This is where cross-border transfer services come into play.
Services like remote.com and Deel.com are great examples. They leverage internal digital wallets, payment systems, and even cryptocurrencies. The key benefit is that they simplify the whole process, handle the legal aspects of taxation, and allow you to receive money in the most convenient way possible.
Instant Payments
The global instant payments market is forecasted to grow at a CAGR of 30%, reaching $3.5 trillion in transaction volume by 2025.
Zee: How are instant payment systems changing the financial landscape, and what impact can we expect in Ukraine?
Alex: Instant payment systems are revolutionizing the way we make payments by allowing real-time transactions 24/7. This technology is now available in over 60 countries. For example, in Poland, over 70% of payments are already instant. The National Bank of Ukraine is also working on launching this system in 2025.
Instant payments are incredibly beneficial for businesses. They significantly reduce transaction costs and improve cash flow management. However, with all these benefits come certain risks, especially the emergence of new online fraud tactics. This won’t stop the trend from growing, but both the state and financial market players must collaborate to minimize these risks and ensure a safe environment for everyone involved.
DeFi – Decentralized Finance System
Market Growth: The Total Value Locked (TVL) in DeFi grew significantly, reaching USD 112.07 billion at its peak in 2021.
Alex: Decentralized Finance (DeFi) is also on the quick rise. DeFi is a financial system where participants can interact directly without needing intermediaries like banks. This means everything operates in a free and transparent way. One of the biggest draws is that you can get loans with lower interest rates compared to traditional banks, and transactions are much faster.
Another major benefit is the robust data encryption, which ensures security. Everything is regulated through open technology, including smart contracts. For instance, if you buy something, the smart contract algorithm automatically transfers the funds from you, the buyer, to the seller.
Now, why is this a trend? It’s simple: people are looking for more control over their finances and quicker, more cost-effective services. DeFi offers exactly that by cutting out the middlemen, reducing costs, and speeding up processes. This trend is also fueled by the increasing distrust in traditional financial institutions and the desire for more transparency in financial transactions. As more people become aware of these benefits, the popularity of DeFi continues to grow.
Open Banking Technology
Alex: Finally, open banking is a game changer for making DeFi and Instant Payments possible. Instead of going through the hassle of gathering proof of your credit history from multiple places, open banking lets companies access information about your account, transactions, and credit history without you having to be actively involved. Of course, this happens only with your prior agreement.
Zee: Sounds like a convenient solution. But with all that data, how is it regulated?
Alex: It’s strictly regulated to ensure personal data is protected. But the beauty of open banking is that it leverages smart contracts. This paves the way for a multitude of opportunities. Companies can offer seamless financial services, making life easier for consumers while maintaining high-security standards.
Market Size: The global open banking market was valued at USD 25.14 billion in 2023 and is expected to grow at a CAGR of 27.4% from 2024 to 2030
Book a call with our experts
Feel free to drop us a message regarding your project – we’re eagerly looking forward to hearing from you!