In Brief:
Khalaf was bullish on the UK’s prospects, arguing that London and other European hubs are naturally more innovative than their US rivals as they cannot rely as much on revenue from interchange fees.
- "The main difference is that in the US, the interchange is higher than in the EU and UK, so there’s a lot more money that the fintechs have been able to grab,” he said.
- “So the UK and EU-based fintechs, or the customers that are using fintechs, have had to innovate faster and smarter because they have to find other ways to generate revenue.”
What does this mean?
Simon Khalaf, CEO of Nasdaq-listed Marqeta, praises London's fintech innovation, predicting a rebound in funding. Fintech valuations peaked in 2021 but faced challenges, partly due to crypto hype. Recent funding successes like Monzo and Flagstone offer hope. Khalaf cites London's innovation edge over US cities and Marqeta's expansion in Europe. The UK government proposes reforms amidst a listings crisis, aiming to attract fintechs. Khalaf highlights promising European startups and sees opportunities in global markets like the US, emphasizing the differences in regulatory environments and consumer adoption patterns.
