Fintech Start Ups That Made The Cut

7 Fintech Startups That Are Worth Mentioning in 2020 

Fintech startups can be considered trendy these days. In 2018 alone, capital funding for such startups in the US reached $13 billion. The following year, this amount increased to $18 billion. Globally, fintech startups were able to generate $34.5 billion in funding.

However, before you even start thinking about starting a fintech company, you have to understand that majority of the capital can be found on the biggest fintechs. The average valuation for the top ten fintechs worldwide is at $9 billion. That’s a huge jump from 2019’s $6 billion average valuation.

Though there is a huge potential for starting your own fintech company, many simply don’t make it. Here are some Fintech startups that have successfully carved their way into different markets. 


Chime is a San Francisco based startup that was founded in 2013 by Ryan King and Chris Britt. Considered as a “neobank” company that aims to minimize fees in financial services via their mobile ap. The company in 2019 has gained momentum and had a revenue of $200 million.

The company is quite promising since it has no physical branches and each account is issued with a debit card. The majority of its earnings come from the collection of interchange or the fee that banks charge the merchant for processing the card payment. This made it possible to incentivize customers to regularly use their card.

In April 2020, the company announced that they were giving cash advances ahead of the $1,200 stimulus payments. This was a response to the COVID19 pandemic. Though it’s risky, Chime allowed 100,000 users to take $200 that they don’t currently have in their account. However, there are some criteria that users need to meet. For one, you need to get your paycheck regularly deposited via Chime. Plus, you must be receiving paycheck deposits of at least $250 in the last month.


One of the biggest problems in third world countries is to borrow money from a traditional bank. Many are unbanked and don’t have enough credit rating to convince their local bank to let them borrow money. According to a study, 31% of the world’s adult population is unbanked. That is equivalent to 1.7 billion according to the World Bank.

Tala plans to solve this problem and make it easier for people to borrow money. Tala is a California-based fintech lender that allows users to borrow $10 to $500 using an app. In 2013, the company was helped by RPS Ventures and other notable companies such as PayPal, GGV Capital, and Revolution Growth. Today, it has total equity of $200 million.

It has operated in countries such as the Philippines, Kenya, Mexico, and Tanzania. It has already reportedly processed more than $1 billion worth of loans to 4 million clients worldwide.

Gravity Payments

You may have heard of Gravity Payments offering $70,000 minimum wage to all their employees. But aside from the pro-employee move that they made, this credit card processing company based in Seattle is at the forefront of fintechs that you should be looking into.

For starters, from 2004 when it was founded until 2008, it became the largest credit card processor in Washington. In 2018, the company was able to process $10.2 billion in payments.

In 2020, they were making $4 million a month in profits. However, the company decided to drop 55% in card processing fee due to the pandemic.

Varo Money

Varo Money started just like any other bank, but minus the actual bank. It allows consumers to check their savings and checking accounts using the digital app. The app will also give users to see their spending habits and make instant money transfers. You also don’t have to deal with a minimum balance to have a Varo debit card. The good thing about their debit card is that there are no extra fees on overdrafts and foreign transactions.

In June this year, Varo was able to raise $241 million in Series D funding. After the latest additional funding, Varo now has a total of $419.4 million. And on top of that, it is moving towards becoming a real bank as it will soon offer credit cards and loans.


Blockchain adoption is on the rise. Some businesses are starting to accept cryptocurrencies. If you think that adoption only began after 2017 when Bitcoin was almost able to hit $20,000, some companies entered the crypto space earlier. One of which is BitPay.

BitPay is a Bitcoin payment service provider based in Atlanta, Georgia. It was started by Tony Gallippi and Stephen Pair. In 2012, it was able to cater to 1,100 merchants. In 2013, BitPay was able to raise $2 million from Founders Fund. And on that same year, they have catered to 10,000 merchants. In 2018, BitPay was able to receive its license from the New York Department of Financial Services.


Circle started as a peer-to-peer technology company that allowed mobile payments. But after receiving the first BitLicense from the New York State Department of Financial Services in 2015, the company started to push towards virtual currencies.

In 2016, Circle Pay also worked as a Bitcoin wallet where its users can buy and sell Bitcoin using the app. However, Circle decided to stop such service.


Businesses transact in different parts of the globe. However, a common problem in cross-border transactions is the additional fee that businesses have to deal with. You could easily be charged a 1.5% fee to all your transactions.

That’s where Transferwise comes in handy. It is a London-based online money transfer firm that was founded in 2011. And because of worldwide adoption, it was able to transfer money across the globe with no unnecessary fees.

How does Transferwise do this? You can set up a borderless account. This will allow the user to have multiple currencies in his or her account. Using this strategy, Transferwise was able to avoid the use of SWIFT in transferring across borders.

Fintech has changed the world we are living in. Fintechs successfully merged technologies to make life better for both individuals and businesses. Do you have any other fintech startup in mind? Let us know in the comment below.