Each week we take a look at some of the latest UK Fintech News. This week, self-employed savers turn to their pension in 2021, mobile games to generate $5billion In revenue, and the UK is a nation of online armchair traders.
Mobile games in the UK to generate $5billion in revenue
According to data presented by Safe Betting Sites, Mobile Games are projected to generate $5Billion in revenue and reach 30 million users in the UK by 2025.
Mobile Games have been the most lucrative segment of gaming over the last couple of years and many experts believe the segment is only about to get stronger. In 2021, revenue from Mobile Games in the UK is projected to reach $3.43B after a 14% YoY growth from 2020. This figure is set to grow a further 12.7% in 2022 and reach $3.87B.
Rex Pascual, eSports editor at Safe Betting Sites, commented: “It is incredible to think that the future of Mobile Games is about to get more lucrative, considering the heights it has already reached. But the segment is set to experience just that with advancements in technologies such as 5G and cloud gaming set to enhance the mobile gaming experience and make it more accessible than ever before.”
More than a third of Brits who invest in cryptocurrency don’t fully understand it
Despite a huge surge in interest and now more than two million Brits investing in cryptocurrencies, new research has revealed that over a third of those British investors admit to not fully understanding how cryptocurrencies work.
In a survey conducted by Appinio, the global market research platform, and FINTECH Circle, 36% of those who have invested into cryptocurrency only roughly understand the concept and only one in four (25%) feel able to easily explain it to other people. The survey also showed it is overwhelmingly men who invest with just 21% of investors being female.
Susanne Chishti, CEO at FINTECH Circle, said: “We have worked with Appinio in tracking the growing popularity of cryptocurrencies and wanted to see both the knowledge in this sector and the effect of online communities that have democratised investing, be that in cryptocurrencies or stocks/ETFs and bonds. The findings clearly show that despite investments into and speculation with cryptocurrencies, there is still a gap in knowledge as to what they are and how they work. This shows there is a greater opportunity for crypto marketplaces to grow closer to investors and potential investors by offering more education about risks and learning in this space.”
Self-employed savers turn to their pension in 2021
New PensionBee analysis shows that self-employed customers’ monthly contributions and average withdrawal amounts have risen sharply in H1 2021, compared to H1 2020.
PensionBee has found that its customers are paying more into their pensions in 2021 than in the previous year, with the largest monthly contributions coming from the self-employed.
While employed customers’ monthly contributions increased from £374 in the first half of 2020 to £508 in the same period in 2021, self-employed customers’ contributions have risen significantly from £543 in the first half of 2020 to £690 in the same period in 2021.
PensionBee CEO, Romi Savova comments: “It’s encouraging to see both employed and self-employed savers prioritising their pensions by increasing their monthly contributions, particularly during recent lockdowns. As always, we would encourage those who have a larger disposable income to continue saving where possible, and for those in retirement to keep as much of their pension invested until the exact moment they need it to ensure they’re well-positioned to enjoy a happy retirement.”
Gift cards key in reactivating the high street post-Covid
With retail and hospitality venues having finally reopened their doors to the public, new Gift Card and Voucher Association (GCVA) research has found that gift cards are a key driver in encouraging shoppers back to the high streets.
According to a survey of 2,000 UK shoppers, conducted by the GCVA as part of its ‘Gift Back’ campaign, gift cards will encourage over three fifths (63%) of shoppers to get out and support the wide breadth of retail and hospitality venues that are ready to welcome shoppers back to their venues. 35% of shoppers feel more inclined to purchase gift cards for their favourite brands post-pandemic to help businesses get back on their feet following months of closure.
Gail Cohen, director-general of the GCVA: “Gift cards have played a vital role in reintroducing customers to their favourite brands and shops, whether it be returning to a firm favourite or experiencing a new brand. To know shoppers feel encouraged to return to the high street is reassuring to UK businesses, especially our independent shops which are not supported by a global or national infrastructure.”
Truevo, launches feature to help UK businesses save almost 100 per cent in transaction fees
Payment provider Truevo has launched its new e-commerce payment solution ‘Truevo Account’. It aims to help SMEs save on transaction fees incurred whilst making the transition to doing business online more secure.
Research from Truevo shows businesses can save up to 100 per cent with the Truevo Account compared to competitors. The 3-in-1 end-to-end payment solution will enable new and existing e-commerce businesses to accept, process, and manage payments online. Based in London, Truevo is a multinational fintech company that makes online transactions faster, easier, and safer.
CEO of Truevo, David Liu said: “When the pandemic took hold, many business owners had no choice but to transition their businesses online in order to survive. With the Truevo Account, we are one step closer to achieving our vision to remove the ever-increasing burden payments induce on businesses by simplifying the lives of our customers and allowing SMEs to focus on what matters most to them.”
Survey reveals UK is a nation of online armchair traders
According to the findings of a new survey, people in the UK are choosing to trade and invest in stocks and shares online rather than receive potential returns from savings accounts with all-time low interest rates.
The poll of 2,000 people across the UK, commissioned by Capital.com and conducted by OnePoll, also reveals that people in the UK are choosing to trade online themselves because they cannot afford to use an IFA and believe that banks charge too much to manage investments. Four in ten respondents (38%) are trading or investing in stocks and shares online at home or have done so in the past, and a fifth (21%) are considering it, according to the survey.
More than half (52%) of those respondents say that they decided to do this because the potential returns are better than savings rates offered by banks. A further 44% believe that online trading is a convenient way to make some extra income.
Jonathan Squires, CEO of Capital.com, said: “The survey raises the important question about whether traditional sources of financial management are offering value for money. There is a clear willingness for people to take matters into their own hands by trading and investing in stocks and shares directly online, themselves. The internet has broken down barriers to education and investing, making it easier for people to find information online.”