Payments-related M&As are rising & will only accelerate. Here's why💸; FinTechs should be scared by Marqeta's impressive results & insights 👀; FTX+Huobi, or one of the biggest deals in crypto ever 🤯
Good Morning FinTech, 15 August
Good evening Everyone,
And happy Monday! Today’s issue is crazy hot as we’re going to look at payments-related M&As that are rising & will only accelerate (+ reasons why & what we should expect next), why FinTechs should be scared by Marqeta's impressive results & insights (applies to both card-issuing FinTechs & companies that are Marqeta’s key clientele), and FTX + Huobi, or one of the biggest crypto deals in the making (bonus is a reminder why SBF is the new J.P.Morgan). Let’s jump straight into the hot stuff:
Payments-related M&As are on the rise and will only accelerate. Here's why 💸
Spotting the trends 🔍 Two weeks ago I talked about the continuation of a massive payments consolidation when Global Payments bought EVO for a whopping $4 billion. This is how I ended my takeaway then:
As weakening economic signals raise fears of a broader slowdown, there could be another round of megamergers in the payment space that further increases consolidation.
Maybe not a mega level, but payments mergers and acquisitions (M&As) have definitely ramped up as of late. And they will only continue.
More on this 👉 Just in the last two weeks we have seen:
PayTech company Jack Henry acquiring payment infrastructure provider Payrailz.
Restaurant PayTech biz ParTech buying omnichannel restaurant ordering provider Menu Technologies.
Travel and hospitality tech provider Sabre scooping long-time payment partner Conferma Pay.
And obviously, the biggest of them all - Global Payments’ EVO acquisition, an all-cash deal that valued EVO at a whopping $4 billion.
Zooming out, we must note that there were 66 payments-related M&As in the first half of 2022 already, which is bigger than the 59 deals we saw in the same period last year, per data from The Strawhecker Group (TSG).
In the whole of 2021, there were 127 deals collectively worth $76.6 billion. While impressive, it pales in comparison to 2019’s record $169.4B in M&As when the year saw a series of megadeals (i.e FIS’ Worldpay acquisition & Fiserv’s First Data purchase).
What does this mean? 🤔 We will definitely see M&As accelerating throughout the rest of 2022. Here’s why (+ what’s next):