Opinion by: Vitaliy Shtyrkin, chief product officer at B2BINPAY
For years, major retailers have poured resources into developing their own fintech divisions, convinced they could create payment solutions independently and innovate without the smaller players—an endeavor that saw some success initially.
However, these corporations are now coming to terms with the fact that having substantial resources does not ensure innovation.
Why? Because size has its drawbacks. Large companies are often bogged down by bureaucracy, regulatory scrutiny, and antitrust pressures which slow their progress. On the other hand, previously underrated fintech disruptors operate with fewer constraints and greater agility.
They are the ones implementing white-label products, localized lending, and blockchain solutions that already process billions of dollars in stablecoins daily.
Scale isn’t an advantage
While corporations possess global reach, brand recognition, and substantial budgets that theoretically could give them a competitive edge, this size actually becomes a liability in terms of innovation.
Every idea within a corporation undergoes extensive legal checks, regulatory reviews, and risk assessments. Consequently, what a fintech can test in a few weeks might take a retailer an entire year to clear. Unfortunately, shareholder interests complicate matters.
Shareholders demand that companies safeguard and grow their multi-billion-dollar investments, leading large retailers to favor projects with predictable quarterly gains over innovative experiments.
This prioritization often means that budgets that could fuel new products are redirected toward safer, incremental enhancements. Even when innovation budgets are sanctioned, they often remain stuck in “pilot mode,” never advancing into the core of the business.
Moreover, external pressure from regulators exacerbates the situation. In 2024, the Federal Trade Commission moved to block a $24.6 billion retail merger, claiming it would reduce competition and inflate prices. This serves as a stark reminder that major deals for retail giants often lead to regulatory disputes that impede innovation.
For retailers, scale has morphed from an advantage into a constraint, making genuine innovation nearly unachievable. In contrast, fintechs are free to experiment, and in today’s marketplace, speed outweighs size, ultimately determining victory.
The pro-tech mindset
Small and mid-sized providers face less regulatory scrutiny and shareholder pressure, making them more agile. Their simpler structure fosters a culture that views technology as integral to the business rather than merely a support function.
This permits them to quickly launch, test, and refine products, positioning them as the true catalysts of progress in the eyes of retailers. This “pro-tech” attitude is crucial; rather than relying on dated infrastructure or outdated systems, fintechs build directly on contemporary rails.
Related: The evolution of crypto payments and what lies ahead
In practice, this involves leveraging cloud-native architecture, modular APIs, and microservices—tools that empower them to incorporate new technologies like blockchain without waiting for approvals.
This gives fintechs a significantly stronger foothold in shaping the future of digital finance—a position that retailers have yet to claim. Nevertheless, retailers are increasingly recognizing that forming partnerships solely with fintechs can help them break past their innovation stalemate, as evidenced by recent actions taken by Walmart and Shein.
In 2025, Walmart switched its buy-now-pay-later (BNPL) provider, understanding that a nimble, cutting-edge fintech could respond more swiftly and meet consumer demands more effectively. Similarly, in 2024, Shein introduced a co-branded credit card with a Mexican fintech, emphasizing that utilizing local expertise offered more security than attempting to create a financial product in-house.
Collectively, these actions indicate that corporations that once attempted to eliminate fintechs are now enlisting them to enhance their core products. Where does this lead?
The path ahead: partnership or irrelevance
BNPL and co-branded cards merely represent initial steps. The true frontier lies in crypto-native infrastructure, involving tokenized payments, blockchain settlement solutions, and digital loyalty programs. However, challenges ranging from multi-jurisdictional compliance to the hefty expenses of developing on-chain solutions internally are escalating.
This is precisely where the gap widens: Retailers grapple with severe constraints, while fintechs are already creating the necessary infrastructure.
For example, Circle has integrated USDC into payment provider networks, transforming a stablecoin into a mainstream payment alternative. Concurrently, in emerging markets, startups are launching APIs for stablecoin-linked cards, granting businesses instant access to crypto payments without necessitating extensive development efforts. This represents a critical juncture where retailers risk falling behind once more.
Indeed, they may choose to go solo, but that risks repeating the bureaucratic cycle and delays that have already hindered them. Therefore, collaborating with fintechs is the only viable path forward. Fintechs provide the infrastructure, retailers deliver the reach, and together, they can create products that scale to millions.
Corporations must understand that in today’s market, scale without innovation leads to a dead end. Blockchain infrastructure is already emerging, and the retailers who recognize this reality will shape the future, while their counterparts fade into the background.
Opinion by: Vitaliy Shtyrkin, chief product officer at B2BINPAY.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
