Fintech companies are the combination of a single service provider which includes finance as well as technology. Some of the renowned fintech companies investing in the sports Industry are Paytm, Mastercard, Cred and many other companies.
So why do fintech companies invest in the industry like sports?
The sports business has benefited greatly from the blending of technology and money, which has opened up chances for growth and investment. Fintech businesses are using technology to increase fan engagement and give sports teams new sources of income. For instance, fans can access unique material and buy products by using mobile applications and digital platforms.
Paytm launched its own fantasy sports platform called Paytm First Games inclined to its fame and expanded the reach of Paytm. Through its platform Paytm First Games, the Indian digital payments startup Paytm has entered the sports industry. The platform enables users to take part in online contests and games with the chance to earn cash prizes. In order to provide fans with unique experiences and merchandise.
Fintech companies also provided a legal betting platform to the enthusiastic fans.
FanDuel, Unikrn, Sporttrade and DraftKings are some of the companies contributing a legalized betting platform.
Mastercard is one of the prominent players in the current sporting events. Mastercard has gained the official sponsor title of the International Cricket Council (ICC) for the 2019-2023 period, which includes the Cricket World Cup and other major cricket events. As part of this sponsorship agreement, Mastercard was given naming rights for the One-Day International (ODI) cricket rankings, which are used to rank the performance of national cricket teams in the 50-over format of the game.
The rankings were previously known as the “ICC ODI Rankings,” but as part of the sponsorship deal with Mastercard, they were rebranded as the “Mastercard ODI Rankings” in 2020. This naming agreement allowed Mastercard to increase its visibility and brand recognition in the cricket community and among fans of the sport around the world.
Fintech Investment in India
One of the highest contributor to the sports industry by a fintech company is PAYTM.
In 2019, Paytm also became the official sponsor of the Indian cricket team, signing a deal worth INR 3.8 billion (approximately USD 52 million) for a four-year period.
Paytm is currently one of the fastest-growing and most-investing fintech companies in the sports sector. It significantly contributes to the Indian Sporting Leagues.
One of the most well-known cricket tournaments in the world, The IPL, partners with Paytm as its official umpire provider. Paytm offers a variety of services to fans through this relationship, including the ability to buy tickets and shop for products.
Paytm has also worked with a number of Indian sports clubs and tournaments.
The PKL, an Indian professional kabaddi league, is sponsored by Paytm. In addition to numerous branding opportunities, the collaboration gives Paytm the chance to interact with fans and deliver special experiences.
The Indian Super League (ISL), a professional football league, and Paytm are partners. Paytm gains exposure to a sizable and expanding football fanbase with the collaboration, as well as the chance to give fans exclusive and exciting experiences.
These collaborations show Paytm’s dedication to supporting the development of Indian sports as well as its efforts to modernize and innovate the sports sector.
Other Indian fintech companies that have made investments in the sports industry include Dream Sports, the parent company of fantasy sports platform Dream11, and MPL (Mobile Premier League), a mobile gaming platform that offers various games, including fantasy cricket and other sports-related games. Both companies have received significant investments from various venture capital firms and other investors, which they have used to expand their operations and offer new products and services. Sponsorship agreements between major corporations and sports organizations are a common way for companies to increase their brand recognition and connect with consumers who are passionate about sports.
The sports technology sector has suffered greatly from fragmentation in the past and is still doing so. Soon, fintech will play a critical role in the development of sports.