Macroeconomic conditions and improving regulatory clarity are accelerating FinTech M&As 💸; JPMorgan steps up its fight with Square & PayPal 🥊; In-car payments are on the rise 🚘💳
FinTech is Eating the World, 15 September
Hey Everyone,
TGIF! This week was absolutely insane… 🤯 And it’s not over yet as today we’re going to look at accelerating FinTech M&As (what’s happening & what are the key drivers now + some priceless M&A resources), JPMorgan that just stepped up its fight with Square & PayPal (what’s the rationale behind + some solid deep dives into Microsoft of Banking), and in-car payments that are on the rise (it has massive potential!). Let’s just jump straight into the cool stuff 🌶
Macroeconomic conditions and improving regulatory clarity are accelerating FinTech M&As 💸
The deals 🤝 As expected, the FinTech industry is seeing an acceleration in mergers and acquisitions (M&As). This week again we had two interesting M&As during the same day.
Let’s take a closer look at them and what they mean.
More on this 👉 In the prepaid payments sector, Netherlands-based Recharge expanded its global leadership through the acquisition of Startselect, a digital gift card and gaming company. This strengthens Recharge's diversified product portfolio and extends its network of digital marketplaces.
Recharge aims to complete 2-3 more acquisitions by the end of 2024 to consolidate the digital prepaid card market. I bet they are not the only ones given the potential is massive here…
In the crypto accounting vertical, US-based Bitwave acquired Gilded to enhance its enterprise solutions for crypto payments, invoicing, tax tracking, and bookkeeping. The deal comes amid new US accounting rules for digital assets from the Financial Accounting Standards Board. Bitwave views crypto payments as the future given instant settlement and low fees. Pss, stablecoins, anyone?
ICYMI: Game-changer: Visa just expanded stablecoin settlement capabilities 😳 [a closer look at this pivotal move + more bonus reads]
The improved regulatory clarity is expected to spur the adoption of digital asset solutions. Given the current funding environment and macro conditions, this should also lead to more M&As in the space.
✈️ THE TAKEAWAY
What’s next? 🤔 These deals yet again highlight the accelerating consolidation in the broader FinTech space as companies capitalize on macro conditions and regulatory improvements to augment capabilities and competitive positioning through M&As. Key drivers here are obviously the pursuit of scale, product expansion into new markets, and staying ahead of impending regulatory-driven market shifts. On top of that, some verticals (especially in crypto & Web3) have just too many players doing the same thing, so further consolidation is just a matter of time.
The critical point here is to get the M&A right. And it’s all about the numbers. Use these to not miss a thing:
