At the end of 2022, PYMNTS Intelligence profiled a trend wherein partnerships with FinTechs or financial institutions (FIs) and telecommunications companies were transforming and boosting financial inclusion in both emerging and industrial economies. The smartphone has been the gateway to access all manner of activities, and PYMNTS surveys showed that more than a quarter of individuals were interested in using banking offerings provided by telecom firms.

More recently, the PYMNTS Intelligence report “How the World Does Digital: A Global Benchmark of Consumer Digital Transformation,” which focused on 11 countries, found that the infrastructure for digital banking and telecom is pervasive, as most populations surveyed have access to and use mobile phones.

Separately, the Global System for Mobile Communications Association estimated that 4.3 billion people have smartphones in hand, but the greenfield opportunity is significant, as 3.4 billion people remain untapped.

Cross-Selling Opportunities

Drilling down a bit, PYMNTS found that Brazil (an emerging market) is a standout, representing the most digitally connected country in our pantheon, with the most “activity days” spent online — 361 days compared to the overall sample of 281. The outsized digital momentum included mobile banking, used by 63% of local consumers in Brazil, as measured weekly.

Last month, Nu Holdings, the company that owns digital bank Nubank, said in a fourth-quarter earnings release that it increased its customer base by 22% overall and estimated that it became the third-largest FI in Brazil, while boosting its customer count in Mexico by 91%.

Its NuCel mobile phone service, which launched in Brazil late last year, is “a mobile phone service designed to transform customer experience and expand the company’s portfolio beyond financial services.” As 2025 dawned, Nubank said NuCel customers would have access to a savings feature, with yields of 120% of the certificate of deposit on customer-deposited amounts, up to 10,000 Brazilian reais (about $1,700), for at least one year.

The Nubank efforts show how cross-platform and cross-company efforts can forge personalized interactions, with the mobile phone at the center, particularly for everyday saving and spending activities.

In another example, Lyca Mobile integrated Revolut Pay into its payment systems. The companies said the joint efforts enable automated payments for subscriptions and bills, and January announcements said most Lyca customers using Revolut have opted to use the automatic top-up feature.

Earlier this month, Verizon launched a long-term partnership with Santander’s U.S. digital banking platform. The cross-selling initiative offers a high-yield savings account on Santander’s Openbank platform to Verizon’s mobile and 5G customers in the United States.

The Verizon + Openbank Savings Account has a rate 10 times the national average and offers customers the ability to save up to $180 a year on their Verizon bills. The partnership “enhances Verizon’s financial service portfolio with added benefits for customers,” according to a March 18 press release.

As part of the portfolio, the company offers its Visa rewards card through which users accrue “Verizon Dollars” as a percentage (up to 4%) on everyday spending categories.

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According to a PYMNTS Intelligence report, “The FinTech Innovation Agenda,” a collaboration with Velera, nearly two-thirds of FinTechs are prioritizing mobile feature expansion in the next three years, while refining internal testing and addressing regulatory challenges. The report examines how FinTechs are shaping their innovation strategies to meet growth and operational objectives despite ongoing obstacles.

Innovation Drives Market Expansion

For FinTechs, innovation isn’t just about staying competitive — it’s crucial for brand reputation and market expansion. According to the report, 42% of FinTechs prioritize enhancing their brand image, while 39% aim to enter new markets. These factors outweigh profitability and operational efficiency. Internal product testing, particularly with employees, is a key approach, with 44% of FinTechs using this method more than consumer-based testing (17%). Additionally, 50% of FinTechs build their own tools, while 39% partner with industry consultants to refine their products.

Highlighting internal testing illustrates FinTechs’ desire to control product quality and trigger change. By involving employees early on, they can assess market readiness and address potential issues before reaching customers. With 67% of FinTechs prioritizing mobile capabilities for the next three years, it’s clear that enhancing the mobile experience is key to their strategies for consumer engagement and growth.

The Challenge of Attracting Gen Z

Despite the digital-first nature of Gen Z consumers, FinTechs are somewhat divided on the importance of targeting this demographic. While 62% of FinTechs acknowledge that attracting Gen Z consumers is important for their growth, only 42% deem it “very important.” This contrasts sharply with credit unions (CUs), where 95% of respondents recognize the value of engaging Gen Z. Notably, FinTechs that are reluctant to focus on this generation cite concerns about their relatively low deposits (71%) and low credit utilization rates (53%) as the main barriers.

But the potential long-term benefits of attracting Gen Z — such as their growing deposits and high levels of connectivity — should not be overlooked. Nearly 60% of FinTechs agree that Gen Z represents a key growth market, and 49% see them as highly connected, which could lead to customer expansion. Despite the hesitation of some, the opportunity to build long-term brand loyalty among this digitally native group remains a compelling factor that could shape the future of FinTech consumer engagement strategies.

Regulatory and Technical Hurdles

While FinTechs are committed to change and modernization, they are not without their challenges. Regulatory compliance is the top issue facing the industry, with 34% of respondents identifying it as a significant barrier to bringing new products to market. Additionally, 31% of FinTechs struggle with system integration and complex internal decision-making processes. Few respondents in the report cite a lack of resources or budget as major obstacles, indicating that financial and technological resources are in place to support current and future strategies.

These hurdles highlight the complexity of operating in a heavily regulated and technology-driven environment. As FinTechs look to the future, overcoming these barriers will be critical to ensuring continued growth and successful product launches. A focus on streamlining internal processes, staying ahead of regulatory changes and enhancing collaboration with external partners can help alleviate these ongoing challenges.

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The iPhone maker supplanted Samsung late last year as the number-one seller of the devices, though Samsung regained the crown during this year’s first quarter, according to a report Sunday (April 14) by IDC.

That report shows Apple’s iPhone shipments declining and points to a broader recovery in the smartphone market — with shipments up 7.8% year over year to 289.4 million units in the first quarter — although IDC said some turbulence is to still be expected.

“The smartphone market is emerging from the turbulence of the last two years both stronger and changed,” Nabila Popal, research director with IDC’s Worldwide Tracker team, said in a news release. 

“Firstly, we continue to see growth in value and average selling prices (ASPs) as consumers opt for more expensive devices knowing they will hold onto their devices longer. Secondly, there is a shift in power among the Top 5 companies, which will likely continue as market players adjust their strategies in a post-recovery world.”

That top five includes Samsung and Apple, followed by three Chinese consumer electronics companies: Xiaomi, Transsion, and OPPO. Both Xiaomi and Transsion gained market share year over year, the report said, while Samsung’s and Apple’s market share declined a respective 0.7% and 9.6%.

Apple briefly became the world’s top smartphone company in late 2023, supplanting Samsung for the first time in 13 years. During the first quarter of this year, Apple shipped 50.1 million phones, down from 55.4 during the same quarter last year.

This decline is happening as Apple continues to face pressure in China, one of its most important markets.

February brought reports that resellers in China were offering big markdowns on the latest edition of the iPhone. The phone debuted in September but hasn’t sold as well as previous versions, due partially to economic pressures and competition from China-based rival Huawei.

“Apple is catching up with the ‘deflation’ trend in China, intending to boost the demand for iPhones,” IDC analyst Will Wong told Bloomberg News last month.

“Based on IDC’s preliminary January data, the pressure was mainly coming from other Android vendors as we saw Apple decline by around 10% year-on-year in the month while Huawei grew triple-digits over the same period.”

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An undetermined number of AT&T customers in the United States were unable to use their mobile phones for a time Thursday as the mobile carrier experienced this service outage.

Bloomberg reported Thursday that it was not immediately known how many AT&T customers were affected but that the problem was experienced in several cities, including New York, Houston, Atlanta, Miami, Chicago and Dallas.

AT&T, the third-largest retail wireless carrier in the U.S., has about 87 million subscribers, according to the report.

Three other mobile carriers — Verizon, T-Mobile and UScellular — also had service disruptions Thursday, but their outages were more limited than that of AT&T, Reuters reported.

AT&T said in a network update posted Thursday at 10:15 a.m. CT: “Some of our customers are experiencing wireless service interruptions this morning. Our network teams took immediate action and so far three-quarters of our network has been restored.”

About four hours later, in another network update posted at 2:10 p.m. CT, AT&T said: “We have restored wireless service to all our affected customers. We sincerely apologize to them. Keeping our customers connected remains our top priority, and we are taking steps to ensure our customers do not experience this again in the future.”

Asked about the event during a Thursday press briefing, White House National Security Communications Advisor John Kirby said the Federal Communications Commission (FCC) had been in touch with AT&T, the conversations were ongoing and the organizations were trying to figure out what happened.

“I can tell you that DHS [Department of Homeland Security] and the FBI [Federal Bureau of Investigation] are looking into this as well, working with the tech industry, these network providers, to see what we can do from a federal perspective to lend hand to their investigative efforts to figure out what happened here,” Kirby said.

Kirby added that AT&T had reported that there was no reason to believe that the service outage was a cybersecurity incident but that the investigation was in its early stages.

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SpaceX launched the first set of Starlink satellites with Direct to Cell capabilities on Tuesday (Jan. 2), enabling the beginning of field testing on a new service that will provide T-Mobile customers with connectivity almost everywhere in the United States, T-Mobile said in a Wednesday (Jan. 3) press release. 

This connectivity, which will be enabled by SpaceX’s constellation of satellites and T-Mobile’s wireless network, will begin with text messaging and will expand to include voice and data coverage in the coming years, according to the release. 

“Our mission is to be the best in the world at connecting customers to their world and today is another step forward in keeping our customers connected even in the most remote locations for added peace of mind when they need it most,” Mike Katz, president of marketing, strategy and products at T-Mobile, said in the release. “Today’s launch is a pivotal moment for this groundbreaking alliance with SpaceX and our global partners around the world, as we work to make dead zones a thing of the past.” 

The new service will give customers an additional layer of connectivity covering the more than half a million square miles in the United States and “vast stretches” of ocean that are unreachable by terrestrial network coverage, according to the release. 

It will eliminate dead zones, without requiring customers to carry satellite phones, the release said. In most cases, the new service will work with the phones customers already own. 

“The launch of these first Direct to Cell satellites is an exciting milestone for SpaceX to demonstrate our technology,” Dr. Sara Spangelo, senior director of satellite engineering at SpaceX, said in the release. “We look forward to rapidly scaling up Direct to Cell with our partner operators around the world and rolling out messaging service for T-Mobile customers.” 

T-Mobile and SpaceX announced their plans to provide “truly universal coverage” in August 2022. With their satellite-to-cell service, users will be able to send text messages and images from areas that are currently in traditional networks’ dead zones. 

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This, as Börje Ekholm the CEO of Ericsson AB, one of the world’s leading telecom equipment manufacturers, told a panel at the World Economic Forum’s 2023 Davos event that India is beating both the U.S. and Europe in its rollout of 5G network infrastructure.

“India will have the strongest digital infrastructure outside of China and soon, will be comparable to China,” he said, per a Wall Street Journal (WSJ) report on the Davos panel. “The pace of rollout you see in India is very, very rapid… If you don’t have a digital infrastructure, you’re unlikely to have digital companies. India will have a digital infrastructure that is world class.”

Where does the U.S. stand? Ahead of Europe, Ekholm said.

But behind China, and now behind India.

Still in the Early Stages

The relatively slow rollout of 5G wireless networks and their supporting infrastructure around the globe have made it difficult to predict which of the technology’s moonshot promises for the future will bear fruit and in fact transform industries.

“It’s a bit slower than we had hoped for,” the Ericsson CEO said.

5G broadband networks give a significant boost to data transfer speeds and allow for highly integrated digital connections between things as disparate as surgical scalpels and factory warehouses.

While 3G networks provided cellphones with internet access, and 4G allowed video streaming to enter and effectively take over the mainstream, 5G is reportedly up to 100 times faster than 4G at its best.

Perhaps the broadband network’s greatest promise is serving as a foundation for the next generation of businesses that will be built on real-time and instantaneous data-transfer capabilities, like remotely performed surgeries or autonomous transit — both on the ground with self-driving cars and in the air with unmanned drones.

Verizon and Meta announced a partnership last spring (March 3) to explore how the faster processing and increased bandwidth of Verizon’s 5G network can support the so-called metaverse.

5G technology is believed to be critical in eventually supporting and enabling future, internet-reliant innovations like virtual reality (VR), augmented reality (AR) and other immersive experiences across metaverses.

Still, as PYMNTS reported, T-Mobile has said that the technology’s hype is outpacing the number of innovative use-cases under development.

Ericsson’s Ekholm said people looking for that “killer app” need to wait until 5G networks are ubiquitous, adding that video streaming apps and ride-hailing services didn’t take off until 4G had more broadly penetrated the marketplace.

The Ecosystem Exists

Cellular carriers in the U.S. have been offering 5G capabilities for at least the past three years, and a recent survey shows that over half of American cellular customers (61%) accessed 5G networks in 2022, and that customers with 5G access spent on average a third of their waking day on their devices.

PYMNTS has been tracking the United States’ steady transition from an app-based world to an ecosystem-driven one for over half a decade.

Recent research in the PYMNTS’ report, “12 Months Of The ConnectedEconomy” shows that consumers spent 2022 increasingly integrating digital channels into their daily routines, and using connected devices and digital methods to complete tasks 10% more than they were just a year ago.

Younger consumers are driving this trend, with additional research in PYMNTS’ “ConnectedEconomy Monthly Report: Meet the Zillennials” showing that the so-called “Zillennial” generation is nearly 2.5x times more engaged in the ConnectedEconomy than baby boomers and seniors are, and 36% more engaged than Generation X.

As noted at Davos, efforts are currently underway to create a robust U.S. 5G infrastructure that can effectively compete against the hegemony of foreign offerings and set America up for a further boom in its tech industry.

After all, digital infrastructure begets digitally native companies.

Complicating matters, as highlighted by PYMNTS, is the fact that most telecom operators and carriers globally are using major foreign incumbents like Huawei to build out their big-bet investments in 5G infrastructure.

The Chinese company’s products are viewed as presenting an “unacceptable” national security risk for the U.S., given the multinational’s close relationship with the Chinese government and its intelligence arm.

This means the U.S., land of the rugged individualist, will have to go it alone, and they have earmarked billions to do so.

The Open Radio Access Network (ORAN), which counts involvement from major U.S. carriers including Verizon, T-Mobile and AT&T, is seen as one possible frontrunner for helping develop this critical infrastructure.

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Announced in a company blog post, the products include Google’s Pixel 7 and Pixel 7 Pro phones, which the company said offer improved voice and camera, as well as Face Unlock, a facial recognition feature to help users more easily access their phones.

The phones will sell for $599 and $899, respectively, and include the new generation of Google’s in-house Tensor chip, the post stated. Pricing for the basic version of the iPhone 14 — the newest version of Apple’s flagship product — was at $799 Thursday.

“With Google Tensor G2, we’ve improved almost every major subsystem in the chip, and we’ve designed them to work really well together to handle the nuanced and complex nature of our software and machine learning,” Google Vice President for Product Management Brian Rakowski wrote in the post. “So, your smartphone is even smarter, especially when it comes to understanding speech and language.”

The launch of these new products come as Apple has scaled back its factory output for new iPhones due to weak demand.

Read more: Weak Appetite for iPhone 14 Prompts Apple to Reel in Factory Output

Production of the iPhone 14 is expected to be reduced by as many as 6 million units in the second half of this year.

The company had said in August that it planned to make 90 million iPhone 14 units for a total of 220 million iPhones produced this year, the same amount as 2021.

Demand for smartphones is expected to contract, with the market projected to shrink by 6.5% in 2022 to 1.27 billion units, according to market tracker IDC.

“The supply constraints pulling down on the market since last year have eased, and the industry has shifted to a demand-constrained market,” said Nabila Popal, research director at IDC.

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As Bloomberg News reported Friday (Aug. 12), Nigerian Finance Minister Zainab Ahmed announced the tax in a statement outlining the country’s fiscal predicament, as it spends more on debt servicing than it takes in in revenue.

“Although Nigeria is celebrated as the largest economy in Africa, translating this wealth into revenues remains a challenge,” Ahmed said.

Bloomberg said Ahmed didn’t say when Nigeria will start collecting the tax, which is in addition to a 7.5% value-added tax on calls and data.

The report notes that Nigeria has one of the world’s lowest tax-to-GDP ratios and is Africa’s largest producer of crude oil. In the first four months of the year, the country generated 1.63 trillion naira (or $3.8 billion) in revenue and made 1.94 trillion naira in debt service payments.

See also: The African Mobile Money Tax Experiment

PYMNTS reported last month that a number of African governments have begun trying to tax mobile money transactions.

For example, there’s Ghana’s eLevy, a sweeping tax that covers almost all electronic transactions including mobile money payments. Initially slated to be a 1.7% tax, it was reduced to 1.5% following some fierce — in one case, there was a fistfight in parliament — opposition.

Meanwhile, Cameroon, Kenya, Tanzania, Uganda and Zimbabwe have all introduced taxes that target mobile money payments.

However, there’s evidence that these taxes hinder mobile use in the countries that implement them. Data shows that 47% of Ghanaians reduced the number of mobile money payments they make following the debut of the eLevy.

And in Tanzania, which imposed a mobile money tax in July 2021, peer-to-peer transactions fell by 38% from 30 million to 18 million per month, a study by GSMA found.

For all PYMNTS EMEA coverage, subscribe to the daily EMEA Newsletter.

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Verizon reported Tuesday (May 24) that it will be providing these and other services for the Sunday (May 29) event through its 5G Ultra Wideband, which provides a broadband-like connection in this and other stadiums and arenas. 

“With 5G Ultra Wideband’s massive capacity, low latency and super-fast speeds, we’re giving racing fans new immersive experiences that will let them personalize how they’re watching the race, whether they’re at the track or at home,” Srini Kalapala, senior vice president of Verizon technology and product development, said in a press release announcing the company’s plans. 

Demonstrating the Capabilities of 5G 

Sports events have become popular venues for mobile carriers to demonstrate the capabilities of 5G, as they bring together large numbers of people who are creating traffic that might overwhelm an older cellular network, who want to get a good view of the action and who are looking for new ways to optimize their experience. 

For example, in December, AT&T installed at the United Center in Chicago two 5G-powered kiosks that enabled fans of the Blackhawks and the Bulls to take video and photo selfies with augmented reality (AR) versions of players and mascots. 

Later, the mobile carrier added  this “Pose with the Pros” feature to the teams’ apps, which also use 5G and AR technology to show player and team stats superimposed on what is seen through the camera on the user’s smartphone. 

“Our network is packed with speed and capacity to deliver these custom experiences to a stadium near you and to the screen in your pocket,” Jay Cary, vice president of 5G product and innovation at AT&T, said in a press release announcing the launch of these features. “It’s all about creating new, immersive ways to connect you to the teams and players you love while making it all look seamless to you.” 

Read more: Augmented Reality at Chicago’s United Center Powers the 5G Connected Fan Experience 

Similarly, T-Mobile said in March that it is collaborating with Red Bull and using its 5G network to cover live sports events and deliver drone footage, athlete point-of-view cameras and simultaneous high-definition broadcast streams. 

Through the Red Bull TV app, they will also provide multiple viewing angles of the events as well as near real-time biometric and telematic data, including competitors’ heart rates and acceleration. 

“These immersive experiences are made possible by T-Mobile’s nationwide 5G network, which enables high-definition cameras and sensors to transmit large amounts of content wirelessly in real time, allowing for true mobility,” T-Mobile said in a press release announcing the collaboration. 

Providing Livestream, Seven Camera Angles, Augment Reality 

At the upcoming Indy 500, Verizon 5G Ultra Wideband will enable fans to watch a livestream of the public drivers’ meeting via BlueJeans by Verizon. 

With Verizon 5G Multi-View, which is available on the INDYCAR app, fans at the track will be able to see seven live camera angles in high definition so they can toggle between different views of the action. 

With Verizon’s 5G Ultra Pass, fans at home will be able to enter an augmented reality (AR) portal that will virtually transport them to the track and the pit during the race. There, they’ll be able to get a 360-degree view of what’s happening at Indianapolis Motor Speedway. 

In addition, 5G will provide the capacity needed to enable the expected 300,000 attendees to connect and use their mobile devices at the track without delay. 

“Verizon 5G Ultra Wideband has the area covered so attendees can stream, tweet and share their experiences quickly and reliably,” Kalapala said. “In fact, in all of Indianapolis, 52% of Verizon’s network traffic is on 5G Ultra Wideband.” 

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Since the mobile service was implemented in mid-January, the Federal Aviation Administration (FAA) said the agency has received more than 100 pilot reports of possible interference, including three near Chicago O’Hare International Airport.

Reports of irregularities on aircraft’s radar altimeters, the device that measures an airplane’s height above the ground, are being investigated by the FAA.

While interference from 5G service has been ruled out in many cases, it is unclear whether the others reveal a safety hazard or pilots being overly cautious, a source told Bloomberg.

In a statement, the FAA said it is using established safety-reporting systems to examine a handful of reports of possible 5G interference. So far, the agency said, none of these reports have been validated.

Last fall, a debate ignited between federal agencies and industry groups over 5G’s potential impact on airline safety. The clash was between the FAA and the aviation industry on the one side and the Federal Communications Commission (FCC), which regulates commercial use of the airwaves, and telecom groups, on the other.

Read more: Aviation Industry Emerges As Unexpected Obstacle In Path of 5G Rollout

In January, the CEOs of Delta Air Lines, American Airlines, United Airlines, Southwest Airlines and others, said there could be dire implications as AT&T and Verizon implement their new 5G technology.

Learn more: US Airline Chiefs Expect ‘Chaos’ When 5G Goes Live

The airlines said the new C-Band 5G service could make a lot of widebody aircrafts unusable. That could “potentially strand tens of thousands of Americans overseas” and become chaotic for U.S. flights, the companies said.

“Betting on whether or not the average pilot can resolve the situation is not a bet the FAA wants to make,” Jeff Guzzetti, the former head of accident investigations with the FAA, said.

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