Payments is a massively, confusingly and unsustainably fragmented industry right now. So it’s no surprise that 47 per cent of global fintech M&A deals tracked by Pivotl last year were payments companies getting snapped up.
Overall the number of fintech acquisitions jumped 66 per cent between 2014 and 2015 and that number will only increase in the next 12 months. Arguably the most mature of the fintech verticals, payments companies will continue to drive M&A activity this year and don’t be surprised to see both Davids and Goliaths of the industry get acquired. With competition at an all-time high, it’s likely 2016 will also see some failures as companies bow out of the space altogether.
There’s more signs of consolidation in the crowded European payments space with news that Stockholm-based iZettle is buying a company called intelligentpos.
MasterCard has bought Vocalink for £700m ($920m) in a deal that has been rumoured for months.
Oh, what we wouldn't do to know the future! Like Biff and the Almanac in Back to the Future, all we need is a guide. Luckily the team over at Pivotl is on hand to give us one for the future of fintech.
In a sign of the increasing importance of optimising the value of online and offline customer interactions and understanding multichannel customer analytics, UK venture builder Blenheim Chalcot is snapping up customer journey analytics firm iJento.