Why women are the key drivers of fintech innovation

Fintech innovation is increasingly targeting the world’s most influential consumer group: women. With women controlling a staggering 75% of global discretionary spending, fintech providers are waking up to the economic significance of female buyers and introducing innovations aimed at meeting their specific needs.

Craig Newborn, CEO at PayJustNow, highlights that women not only make up a significant share of consumer spending but also reinvest the majority of their income into their families and communities. “Seventy to eighty percent of all consumer spending is by women, who reinvest up to 90% of their income in their families and communities. This makes them the largest and most important buying group globally,” says Newborn. As such, fintech providers are adapting with solutions that cater specifically to women’s purchasing behaviours.

Global female spending power is estimated at $31.8 trillion in 2024 alone, and this figure is expected to grow in the coming years. Analysts predict that by 2029, women will control three-quarters of global discretionary spending. However, as consumer specialist Bridget Brennan points out in her book Why She Buys, many women face ‘time compression’ as they juggle multiple responsibilities at home and in the workplace. This lack of time pushes up expectations for convenience and seamless service.

“Women have primary caregiving responsibilities and often buy on behalf of their families and dependents,” Newborn explains. “Every time a retailer delivers a positive customer experience to a woman, it has a multiplier effect due to the broad range of other potential customers she represents. Generally, women’s purchasing decisions carry more weight than men’s, driving the need for greater innovation by fintech players to meet the needs of women.”

According to data from PayJustNow, women account for nearly 70% of the platform’s customer base. The average female customer has made ten Buy Now Pay Later (BNPL) transactions since joining, with purchases at department stores, fashion outlets, homeware stores, and beauty retailers topping the list. Over the past five years, women have saved more than R100 million in interest and fees by using PayJustNow. The company’s latest interim report reveals that in the first six months of 2024, women have spent over R1 billion on the platform.

PayJustNow has emerged as South Africa’s leading BNPL provider, boasting a user base of more than 1.8 million customers and growing by 100,000 new users monthly. Remarkably, 80% of its users are repeat customers, and the platform maintains a default rate of under 2% thanks to its sophisticated scoring system that ensures affordability.

Newborn emphasises that the platform’s success goes beyond simply splitting payments into instalments. “Women log in to our platform to receive deals tailored to their individual shopping habits, while our ‘search and discover’ functionality allows them to find relevant retailers offering specific products or brands with ease,” he says. This customisation enhances convenience and personalisation, addressing the time constraints faced by many female consumers.

Newborn cites a practical example: a plus-sized woman in need of a custom-made bra to relieve back pain. Faced with the dual responsibilities of managing her household and work, she often lacks the time and budget to prioritise her own needs. “This is where fintech innovators can enforce change and empower women to not only buy what they need but also to be who they want to be,” Newborn asserts.

The influence of female consumers is undeniable, and as the primary drivers of innovation in the fintech sector, the future of financial technology will depend on how well providers can continue to meet their evolving needs.

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