An Overview of International Fintech Instruments Using Innovation Diffusion Theory Adoption Strategies

Abstract

The aim of this chapter is to evaluate and predict the future of international fintech instruments in the domain of innovation diffusion theory (IDT) adoption strategies. Further, the consequences of the new payments system directive (PSD2) in Europe and blockchain applications are discussed. For instance, money transfer and payments have the highest rate of adoption (ROA) while insurance services have the highest speed of growing ROA due to relative advantages, high compatibility and trialability levels, and low level of complexity and uncertainty. Cross country comparisons include descriptive statistics about fintech deal value and volume, innovation rank, B2C commerce market, ROA and internet penetration. Germany is the only country listed in all of the top 10 ranking lists, followed by the U.S., the U.K., and France. Also, China, India, and Canada have distinguished success in terms of fintech indicators while the growth in Japan is expected to be slow. Accordingly, ROA in five emerging markets is much higher than some of the developed countries which can be explained by the Cancian Theory.