With two Technology Spending Intentions Surveys (TSIS) completed since ETR’s addition of the Fintech sector into our survey universe, we highlight our takeaways ahead of our first full year of spending intent data on the sector coming in January. At the sector level, Fintech boasted a 23.1% Net Score higher than the broader TSIS Survey Net Score of 20.2% in OCT23. This represented an increase in aggregate spending intent from the previous survey in JUL23, one of only three subsectors in our data displaying a sequential increase (along with Contact Center and Diversified Apps). Subsector Adoptions came in at 10% of respondents in OCT23, an increase from the 7% seen in JUL23. This level of Adoptions ranked fourth across the 28 subsectors tracked in ETR data, behind only ML/AI, RPA, and Container Orchestration. This increase in Adoptions was largely responsible for the sequential Net Score gains in 2H23 survey data.
B2B E-Commerce player Shopify (see the ETR data visualization below) was the standout leader in the sector data. In fact, the data warranted the first-ever Positive outlook in ETR’s data within the Fintech sector. Not only did Shopify lead all subsector players in our data with a robust 46% Net Score, but the sequential data from JUL23 also showed a doubling of 2H spend intent within our sample. The 23% survey-over-survey gain was by far the largest within the sector. This was driven by a doubling of Adoption indications (at 14%, well above most peers in the space) sequentially matched with higher levels of Increasing spend intent. This also comes as Decrease citations fell substantially from 11% to only 2% in OCT23. As noted in our report, Mid & Small respondents (51% of vendor citations) showed a Net Score increase to 56% in OCT23 with robust expansion rates within the cohort. We anxiously await the January 2024 data to see if the company can continue this tremendous momentum into next year.
Payment processing giant Stripe held the second-best position in the sector. Please note the image above only highlights vendors in the sector that received more than 40 unique ITDM citations. To see the full data, you can access the ETR platform.
Stripe is seeing robust absolute Net Score levels (40%) that increased substantially sequentially from JUL23 data, along with a more than doubling of Adoption indications within our data to 11% of respondents. This Net Score performance ranked second behind Shopify in the sector, and Adoptions indications ranked third, as Avalara also showed robust gains in Adoptions, edging out Stripe with 12% of respondents expecting to Adopt Avalara in 2H23. The Net Score improvements for Stripe, however, were more impacted by robust levels of expansion rates from existing customers, as 37% of respondents indicated plans to spend more with the vendor in 2H, up from 29%. This also comes alongside increasing Pervasion for the vendor and low Negative spend indications, including falling Churn indications sequentially.
You can see the spending intentions breakdown over the past two survey periods in ETR's single vendor view data illustration below. Please note that this data model (and dozens more) is available for all 700 companies and technologies in ETR's vendor universe.
Salesforce Commerce Cloud ranked third in Net Score across the sector, with Plaid rounding out the top four, despite some sequential contraction for the latter (after leading the sector in Net Score in JUL23). Like Shopify and Stripe, Vertex also displayed robust sequential Net Score gains in the data. Bill.com displayed above sector average level spend intent despite sequential declines and Toast has lagged in Adoption and Net Score metrics so far. To learn more about our full Fintech coverage or to request expanded vendor coverage, please reach out to our service team ahead of the 2024 full-year data in January as we see how the 2H23 trends above materialize in the new year.
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Enterprise Technology Research (ETR) is a technology market research firm that leverages proprietary data from our targeted IT decision maker (ITDM) community to provide actionable insights about spending intentions and industry trends. Since 2010, we have worked diligently at achieving one goal: eliminating the need for opinions in enterprise research, which are often formed from incomplete, biased, and statistically insignificant data. Our community of ITDMs represents $1+ trillion in annual IT spend and is positioned to provide best-in-class customer/evaluator perspectives. ETR’s proprietary data and insights from this community empower institutional investors, technology companies, and ITDMs to navigate the complex enterprise technology landscape amid an expanding marketplace. Discover what ETR can do for you at www.etr.ai