In Spain, companies that make up the FinTech sector are demanding the implementation of a precise regulatory framework to consolidate the FinTech and PayTech sector, and promote its healthy growth and development in the country.
The application is being made to the regulatory and supervisory bodies of the industry in Spain, and is based on the PayTech white paper, recently published by the Spanish Association of Fintech and Insurtech (AEFI), which represents the Spanish FinTech sector.
The PayTech white paper is a document that compiles the industry's needs and arguments to support its request to regulators to approve a specific regulatory framework applicable to payment and electronic money service entities in the country. Likewise, the document sets out the need to assign specific personnel dedicated to issues specific to the FinTech and PayTech industry within regulatory and supervisory bodies, so that the competent entities have qualified personnel to evaluate processes and urgent measures to be adopted to improve the FinTech and PayTech sector in the country.
According to the document, these are some of the urgent measures that must be taken in the industry to guarantee and promote responsible and sustainable development, as well as to improve the Spanish environment in favour of technological and financial innovation.
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Protection of entities and end consumers
The industry of electronic and digital payments, and new finance, is growing by leaps and bounds, which is why the president of AEFI, Rodrigo Garcia de la Cruz, stressed that the objective of the PayTech white paper is to encourage the desire for a deep analysis of this growing industry, which will allow authorities to understand the business models specific to the sector. In this way, regulators and legislators will be able to establish a clear and precise regulatory framework that allows the development of the industry, but also encourages its expansion and growth.
In the current era, citizens' interest in learning about new forms of finance is just awakening, but as this is a sector that is not fully regulated, malicious actors can take advantage of the situation and scam users with little or no experience, giving a bad image to the sector in general. Thus, García de la Cruz argues that if the FinTech sector has a clear regulatory base, the industry will be able to develop and grow in terms of investment, talent and technological development, in addition to guaranteeing the protection of participating entities and end users and consumers.
PayTech White Paper Objectives
What García de la Cruz expressed is clearly reflected in the 3 main objectives of the PayTech white paper presented by AEFI, which are mentioned below:
- Knowledge and dissemination of business models in the FinTech industry.
- Industry analysis to design a regulatory framework that promotes responsible and sustainable development and growth.
- Preparation and presentation of regulatory proposals applicable to the sector, and design of a work and action plan to promote innovation in the FinTech and PayTech sector.
The vision of the organization is to consolidate the new trends that develop as technology advances, and to guarantee the creation and implementation of innovative payment solutions that simplify our daily lives, while ensuring security and trust. For example, today, technological development has allowed significant progress in improving existing payment methods. We now have neobanks, such as Bit2Me, peer-to-peer (P2P) value exchange platforms such as Bitcoin and cryptocurrencies, , and many other innovative payment solutions and services.
The evolution of payment systems and the new needs of society
According to Pagantis COO, Bezanilla Sea, the world is evolving towards new forms of finance where fiat money will not be necessary and will have to disappear, giving way to an increasingly important and indispensable trend in society, PayTech. In his opinion, the implementation of new trends in PayTech, which adapt to the demands of new consumers and improve the online shopping experience, is the future, so developing and adapting new technologies to this trend will be essential to continue offering a wide range of services that meet the needs of present and future generations.
The PayTech white paper is based on this reality to encourage the participation of regulators within the industry. Renowned companies such as Mastercard, Bank of Spain, Kineox y CMS Spain, who have already expressed their appreciation of how technology is innovating within payment systems, causing true transformative change and opening the doors for the integration of new participants and the creation of better products and services that offer greater benefits to consumers and users.
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