payments - ey-innovalue · ransaction overview 15 vc-viacti ty transaction overview. payments...
TRANSCRIPT
I have recently been tasked by the organisers of this
year’s MPE conference in Berlin to attempt a forecast
of the future development of the acquiring and
processing industry over the next five years. While
predicting the future is always a daunting task, it
probably has been never more difficult to forecast
the future of the payments industry. Many different
factors are in effect in an industry that is undergoing
massive change.
The attempt to forecast industry developments over
the next five years raises a number of questions:
How will e-, m- and social commerce (via plat-
forms link Facebook, Instagram and Pinterest) or
the Internet of Things (IoT) drive electronic pay-
ments? What other growth drivers are there?
How will regulatory initiatives like IFR, PSD2 and
AML regulation influence profitability, business
models and the competitive landscape?
Which role will alternative payment methods
(APM) play in the future? Will there be equivalent
alternatives to card-based schemes that provide
acceptance across the globe and across channels?
What about the PAY-initiatives?
How will the price for payment acceptance evolve
and which other services are suited to generate
new income streams for merchant acquirers and
processors? Will payments be for free for mer-
chants eventually?
How will infrastructure developments like real-
time payment systems (RTPS) or the blockchain
and its applications change the nature of pay-
ments and facilitate the launch of new services
and service providers?
How will merchant requirements evolve (e.g.
“omni-channel”) and drive change in the indus-
try? Will mobile platforms develop into massive
merchant aggregators?
Which merchant acquirers and processors will be
best prepared to adapt to the changing industry
landscape and drive innovation in the market?
Revenue forecast
At the end, however, as for any forecast, it will all
show up in the numbers. Therefore, INNOVALUE
developed a detailed bottom-up model that fore-
casts net revenue and profit pools for POS- and
e-commerce acquiring, processing, terminal sales,
leasing and maintenance, gateway and other prod-
ucts and services for the European countries. As a
result, INNOVALUE expects the European net reve-
nue pools for merchant acquiring based on net
acquiring margins (MSC after interchange and
scheme fees) to grow from EUR 5.5 billion to
EUR 7.2 billion from 2015 to 2020 (CAGR 5.5 %),
with an over-proportional increase in revenues
coming from online acquiring. Net revenue growth
is driven by an increase in total purchase value
(TPV), while we expect the net acquiring margins to
shrink over time due to increasing competition
across all segments.
Acquiring in Europe is still an attractive, growing
business for the next five years. In terms of
growth opportunities, Europe is however outshined
by other regions and markets, particularly in
China, Southeast Asia and Latin America (for
e-commerce).
The fuTure of merchanT acquiring and processing – an indusTry forecasT
andreas haberseTzer
Partner
paymentsInsight. Opinion.
vol 12
COntent
1 The fuTure of merchanT
acquiring and processing –
an indusTry forecasT
Andreas Habersetzer discusses the future of merchant
acquiring and processing.
3 digiTal banking
INNOVALUE reviews the digital banking and payments
landscape: its evolution, the response from existing
players and the emerging “digital” start-ups.
5 conTacTless paymenTs
aT leading reTailers:
germany sTill lags behind
INNOVALUE presents the white paper "Merchant pay-
ment acceptance and mobile services: A reality check at
large merchants in Germany and the UK”.
7 public markeT valuaTions
and The markeT environmenT
Stocks have seen a rough start into 2016 as meaningful
slides occurred globally following what was a strong
year 2015. Markus Massem takes a look at valuation
drivers and benchmarks the different groups within the
payments universe.
9 m&a acTiviTy
What are the key drivers of M&A and IPO activity? Which
transactions made headlines in the 4th Quarter of 2015?
What are recent takeover rationales? Robert Kayser,
Apostolos Psaras and Philipp Steinbrück answer these
questions.
11 venTure capiTal
Once again the INNOVALUE team reviews the latest
payment startup funding activity (Q4 2015). What are the
payment segments investors were most interested in?
Which startup funding made headlines in the last quarter of
2015, and which have been the largest deals in 2015 at all?
13 m&a acTiviTy
Transaction overview
15 vc-acTiviTy
Transaction overview
payments Insight. Opinion.
Electronic payments in China have
been growing by 34 % at the POS (Source:
Red Book, Bank of International Settlement –
BIS) and 42 % online, while e-commerce vol-
umes in India and Indonesia have been growing with
130 % and 66 % last year respectively, according to
eMarketer. Given the low penetration of these
markets through electronic payments, it can be
assumed that the growth of emerging payment
markets will continue to exceed European growth
rates over the next years, relatively independent
of the overall economic development.
International capabilities
Few payment service pro-
viders are equipped to
capture the international
growth opportunity and
service merchants globally.
Of the Top 20 global
acquirers by number
of transactions processed
(according to the Nilson
Report), First Data is
closest to having a global
footprint (albeit on differ-
ent platforms). Global pay-
ments and Elavon have operations on more than
two continents. Wirecard, although not among the
leading global payment processors, has made
numerous acquisitions in high growth markets,
ranging from Singapore, to Indonesia, New Zealand,
South Africa, Turkey, Brazil etc. over the last few
years.
While established
acquirers and processors
are struggling in particular to establish
POS operations across the globe, gateways have
come up with the ambition to take their place at
the merchant interface and provide comprehensive
services (e.g. multi-
currency / -channel /
-payment method rec-
onciliation and collec-
tion) that marginalise
the task of acquirer
processors.
Business model
evolution
Therefore, the business
models of acquirers
and processors have
to evolve in order to stay competitive and maintain
the merchant relationship. Acquirers have to
evolve to business solutions providers, serving
the needs of merchants beyond payments. Within
payments, successful merchant acquirers are
providing a full suite of international omni-channel
payment solutions. In addition to payments
cards, merchant
acquirers provide acceptance
for alternative payment methods. Especially in the
micro and small merchant segment, acquirers
are able to leverage the merchant relationship and
provide a full portfolio of business solutions. Provid-
ing services beyond payments increases merchant
stickiness and results in longer relationships and
higher income per merchant. Acquirers need to
invest in the technical infrastructure to facilitate
new services in-house or via 3rd party integrations.
As acquirers will not be able to keep the pace with
technological change and undertake the investment
required, e.g. to develop an “open”, state of the art
platform, INNOVALUE expects further consolida-
tion and a significant reduction of the number of
players in the European market.
acquiring in europe is still an attractive, growing business for
the next five years (…) europe is however outshined by other regions and markets, particularly in China, southeast asia and Latin america
2
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payments Insight. Opinion.
The digital banking journey started over thirty years
ago when “tele-banking” services allowed custom-
ers to interact with their bank using their phone
without needing to travel to the branch during its
opening hours. It progressed with the widespread
adoption of the internet by households and banks
offering websites to advertise their products and
enable customers to perform simple transactions
online. The launch of the iPhone advanced the con-
cept of digital banking to one whereby customers
could interact with their bank anytime and any-
where – no longer reliant on the traditional physical
banking channels. The app store also enabled new
business models and the emergence of the “sharing
economy” with new companies emerging (for
example Uber). The primary theme for these new
businesses has been disintermediation: no longer is
it necessary to use an established platform (e.g. a
taxi company) to interact with service providers,
instead, consumers can connect directly to the pro-
viders (e.g. the taxi driver). Digital has survived the
dotcom crash and financial crisis and its adoption in
banking has been driven by both the technical
developments as well as the digitisation of
commerce.
Despite digital’s age, many “incumbent” banks have
struggled to fully leverage end to end digital capa-
bilities and continue to rely on physical support to
serve customers. They have CRM systems that are
not integrated across all product types and channels
and therefore do not enable a holistic, single view of
the customer. Or they offer online application forms
that must be printed and posted to the bank to be
accepted. Opening a mortgage in the UK takes
between five and forty days1 yet a fully digital pro-
cess has allowed the process to be completed in as
little as 24 minutes2. Today’s digital offering from
the banks is often insufficient to meet the needs of
customers who expect to use multiple channels
seamlessly to complete transactions despite the
millions or billions of pounds that the banks are
investing in digital transformation programmes.
francesco burelli
Partner
megan John
Manager
digiTal banking
1 Source: The Telegraph I 2 Source: HSBC
figure 1: Digital development timeline
3
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payments Insight. Opinion.
figure 2: Fintech start-ups by product category
A major challenge for incumbents is their legacy
systems. Many banking systems are decades old,
they were developed in the 1970s or 1980s to
support a business model where a bank branch
closed at 5pm each day and accounts were set-
tled overnight. These systems were therefore
built around “batch pro-
cesses” that could run at
specified intervals. Today’s
business models are trying
to provide customers with
24/7 access to up to date
information and therefore
need to operate as “real-
time” systems. Changing
the underlying infrastruc-
ture is time consuming and costly and, since the
advent of the iPhone (which made real time much
more of a necessity), banks have also been react-
ing to the financial crisis with most of their avail-
able investment costs being spent on regulatory
driven changes.
While the incumbent banks focus on how to
transform their legacy systems, developed in the
pre-digital era, a plethora of fintech start-ups
have emerged. These typically focus on a single
product offering and have a digital enabled archi-
tecture at their core. They have created a new
financial services marketplace, often leveraging a
peer-to-peer approach – allowing savers and bor-
rowers to transact through an app or website and
without the traditional banking infrastructure.
Zopa launched in 2004, provid-
ing peer to peer lending,
Wonga in 2008 with
online loans and
the UK’s first
digital bank
Atom gaining
the digital banking landscape of the future will include
both incumbents and new players, all serving the customer anywhere, anytime
regulatory approval in 2015. These start-ups are
focusing on areas with less regulation (e.g. lend-
ing and payments) and are likely to stay as niche
providers given the expense (~GBP 10 million) and
time (4 – 40 months) to obtain a banking license1.
The new players
will gain market
share from the
existing providers -
in three years,
potentially 20 % of
US lending will be
through alternative
providers.2 How-
ever, they will not
replace them – the incumbents have legacy cus-
tomers and the ability to invest in new customer
acquisition. They are also investing in innovation
and they are partnering with the new providers
(for example BBVA’s investment in Atom bank).
The digital banking landscape of the future will
include both incumbents and new players, all
serving the customer anywhere, anytime.
1 Source: thefinanser.com I 2 Source: Goldman Sachs
4
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payments Insight. Opinion.
conTacTless paymenTs aT leading reTailers: germany sTill lags behind
Contactless payment acceptance at leading retail-
ers in Germany continues to be the exception. Just
under a third (30 %) enable contactless payments
via smartphone, credit
card or wearables like
smartwatches and bra-
celets. In contrast, in the
United Kingdom the fig-
ure is already at 63 %. In
addition, both markets
differ strongly with
regard to the offered
smartphone apps. These and more results are
shown in our recent white paper, in which the pay-
ment acceptance and mobile services of 60 major
retailers in the UK and Germany are compared.
All of the analysed UK merchants accept credit
cards, while about 27 % of the merchants in Ger-
many accept only cash and debit cards and no credit
cards. This number would be even higher if not for
the fact that the big discounters such as Aldi, Lidl
and Netto introduced credit card acceptance in the
past year. However, we already know of multiple
merchants that intend to introduce both credit card
and contactless acceptance in 2016.
Payment acceptance and Mobile Services: inno-
vators are ready for omni-channel retail
In addition to payment acceptance, the smartphone
apps of the largest retailers were analysed in the
white paper. We determined maturity levels for both
areas and determined from the results how
advanced the individual companies are. About one
third of the analysed merhants in Germany can be
categorised as innovators who offer their customers
both at least credit card payments as well as mobile
services that integrate into the in-store systems or
even payments via their apps (10 %). In the UK 46 %
of companies surveyed already have set up their apps
in this way to be optimised for omni-channel retail
(Payment apps: 13 %).
Another third of Germany's leading merchant
accept credit cards but limit their own apps to sim-
ple services such as a mobile version of the online
shop without integration in in-store systems. This
kind of setup is only found at one in ten of the large
UK retailers. This is a clear indication to us that a
degree of uncertainty
about the expected cus-
tomer behavior prevails
at the German mer-
chants. The invest-
ments in fully integrated
omni-channel retailing
systems are avoided, at
the same time they do
not want to miss the trend completely.
However, these limited solutions lack true cus-
tomer value. The study shows 43 % of large
retailers in the UK have no dedicated native app
while in Germany this number is at 27 %.
Among the innovators in Germany we see for
example Douglas, Edeka, Obi and Media Markt.
The spectrum is therefore relatively wide across
industries. Also in the follower group, we find
companies from almost all sectors of retail. A
complete lack of apps can be observed for large
furniture discounters. We expect the German
merchants to follow the example we have seen in
the UK and over time to upgrade their mobile ser-
vices to enable omni-channel retail or to drop
their own native apps all together.
Thomas grohnerT
Principal
kalle dunkel
Senior Associate
figure 1: analysed merchants per maturity level in %
0
cash only
1
debit cards
2
credit cards
3
contactless (card, phone,
wearable)
63 %
37 %43 %
0 %
27 %
0 %0 %
30 %
GER
UK
figure 2: analysed merchants per maturity level in %
33 %
13 %
33 %
3 %7 % 7 %
43 %
27 %23 %
10 %
0
no app
1
pure content
2
online services via app
3
interaction with store
system
4
proximity payment
GER
UK
We already know of multiple merchants
that intend to introduce both credit card and contactless acceptance in 2016
5
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payments Insight. Opinion.
INNOVALUE White Paper
In the white paper "Merchant payment acceptance
and mobile services: A reality check at large mer-
chants in Germany and the UK" INNOVALUE anal-
yses payment options and customer apps of
60 large retailers in Germany and the UK in seven
verticals (food, DIY & gardening, fashion & cloth-
ing, department store,
personal care, consumer
electronics, furniture &
decoration). The compa-
nies studied have a mar-
ket share of 50 % (UK)
or 37 % (D).
Please visit the publications section at
www.INNOVALUE.com if you are interested
in reading the full report.
Conclusion
Through the combined evaluation of payments
acceptance and mobile VAS we believe that both
the innovation focus (Innovators and First Movers)
and the core business focus (Player without mobile
offerings) are valid approaches. The “stuck in the
middle position” (Follower) should be avoided.
Offering pure online ser-
vices via an app alone,
without true gains for
the consumer, is not
instrumental in achiev-
ing business success in
retail.
pure online services via an app alone,
without true gains for the consumer, is not instrumental in achieving business success in retail
6
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payments Insight. Opinion.
Stocks have seen a rough start into 2016 as mean-
ingful slides occurred globally following what was
a strong year 2015. The S&P 500 lost 7 % and the
STOXX 600 13 % over the last
three months. The declines
were driven by a number of
factors, including concerns
over global growth prospects.
The growth of the Chinese
economy in 2015 was the
lowest since 1990, but a US
recession is currently not
seen as likely. Other impor-
tant factors that have been
pushing markets downwards
include the movement of oil
prices and concerns about the
general health of European banks. Some relief
came from the minutes of the ECB's January
meeting, which reinforced a possibility that policy
makers will enact further stimulus measures for
public markeT valuaTions and The markeT environmenT
markus massem
Manager
the great majority of companies in our payments
universe have ended up lower at the end of the three month period, with the correction in the market at the beginning of the year being one of the main drivers for the decline
the Eurozone economy. Also further rate hikes of
the Federal Reserve are currently seen as less
likely, even though increases in rates can be seen
as a sign that the economy is thought to improve.
The great majority of public companies in our
payments universe (see end of article for compo-
sition) have ended up
lower at the end of the
three month period
(with only 5 out of 21
stocks posting gains).
The correction in the
market at the begin-
ning of the year was
one of the main drivers
for this overall decline,
in addition to company
specific events. Since
the beginning of the
year, only 6 out of the
21 stocks are still in positive territory. The overall
payment index is down by 11 % over the past three
months and 7 % since the beginning of the year.
The acceptance bucket lost 15 % over the three
months period. Global Payments, which was
among the strongest performers in the accep-
tance bucket in 2015, has lost 17 % in market
value over the past 3 months. The company’s
share price has declined continuously since the
announcement of the acquisition of Heartland
Payments at USD 100 a share in cash and stock
on December 15th. Ingenico tumbled 12 % after
JPMorgan downgraded the company following
the release of 2015 results. Margin guidance for
2016 was weak at 21 % compared to the 23.3 %
The payments universe (alphabetical order):
Acceptance: First Data Corp, Global Payments,
Ingenico, PayPoint, Vantiv, Verifone, WorldPay
Processing: Cielo, Euronet Worldwide, FIS,
Fiserv, Total System Services (TSYS)
PSP/Online payments: PayPal, Paysafe, Wirecard
Issuing/Prepaid solutions: FleetCor, Green Dot, WEX
Schemes: American Express, MasterCard, Visa
Sources: INNOVALUE research and company filings;
Google Finance for share price data
consensus estimate and the 23.1 % the company
delivered in 2015. Vantiv is one of the few shares
that gained since the beginning of the year but is
still down 3 % over the last 3 months.
Following its IPO at USD 16 a share on October
15th of last year, First Data has lost 30 % of mar-
ket value, with most of the decline occurring in
February, even dipping below USD 10 in early Feb-
ruary. The company issued Q4 results which
missed estimates on earnings, posting a loss, but
beat revenue estimates. WorldPay on the other
hand has been able to post gains since its IPO on
the 13th of October, gaining 27 % when compared
to the offering price of 240p. Earning reports for
2015 will be published in early March.
The comparables within the processing bucket lost
about 13 % over the last three months. Cielo was
one of the underperformers, as Brazil's largest card
payment processor missed fourth-quarter profit
estimates due to rising costs and expenses, more
than offsetting robust card processing revenues.
Euronet plunged upon the release of earnings, as
the company narrowly missed the consensus esti-
mate on earnings and revenue came in short of
expectations. Fiserv was the only stock to gain
over the 3 months period, rising 1 %.
The comparables within the PSP and online pay-
ments category gained about 4 % over the last
three months. Paysafe demonstrated the stron-
gest gains in share price, jumping 16 % throughout
that period. The company is reporting results in
mid-March but issued a statement in early 2016,
expecting full-year results to be ahead of market
expectations, helped by strong growth across its
product lines, particularly in its North American
figure 1: Indexed stock price performance last 3 months February 18th 2016
Acceptance Processing PSP/Online payments Issuing/Prepaid Schemes S&P 500
110
105
100
95
90
85
80
75
01.12.15 29.12.1517.11.15 15.12.15 12.01.16 26.01.16 09.02.16
7
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payments Insight. Opinion.
processing business. Wirecard AG lost 3 % over
the last three months while PayPal soared upon
the release of fourth quarter earnings, reporting
better-than-expected quarterly revenue. The
main drivers behind the revenue were the surge in
processing volumes as well as new customer
additions, with the company acquiring more cus-
tomers in the fourth quarter of 2015 than any
quarter in the company's history. PayPal also
announced a buyback of USD 2 billion of its stock.
The comparables of the issuing / prepaid solu-
tions bucket lost about 9 % over the last three
months, with WEX and Fleetcor posting share
price losses and only Green Dot posting gains.
WEX is near a three year low as the company gave
a weak Q1 and 2016 outlook. Green Dot posted
gains, however, this is partially based on specula-
tion regarding a potential sale of the company.
Lastly, the trading comparables within the
schemes bucket lost a total of 15 % over the last 3
months. American Express lost 25 % of market
value over the period while MasterCard and Visa
lost 12 % and 10 % respectively. American Express
announced its plan to cut costs by USD 1 billion
over the next two years. The company’s plan will
include layoffs and streamlining divisions such as
marketing. Chief Marketing Officer John Hayes
will leave the company. Visa reported earnings of
69 cents per share, beating estimates of 68 cents
but fell slightly short of revenue expectations with
reported revenue of USD 3.57 billion against the
estimate of USD 3.61 billion. MasterCard was also
slightly short of meeting its revenue expectations,
but surpassed its earnings expectations for the
fourth quarter of its fiscal year 2015.
figure 3: payments universe trading multiples as of February 18th 2016
0.0x3.4
4.32.5
5.2
24.8
8.6
10.0x
20.0x
25.0x
30.0x
6.4
4.0 4.2
17.615.4
14.2
9.7
3.8
10.812.9
10.5
16.3
20.0
EV/REV CY 14 EV/REV CY 15 EV/EBITDA CY 14 EV/EBITDA CY 15
Acceptance Processing PSP/Online payments Issuing/Prepaid Schemes
70 %
60 %
50 %
40 %
30 %
20 %
10 %
0 %
7.1 % 6.5 %
21.8 %
15.5 %
23.9 %
29.6 %26.0 %
46.4 %
23.8 %28.5 % 26.2 %
36.5 %
62.8 %
figure 2: payments universe operational metrics as of February 18th 2016
Revenue growth CY 14-15 EBITDA margin CY 14 EBITDA margin CY 15
15.0x
5.0x
2.4 %
61.4 %
9.9
8
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payments Insight. Opinion.
The last quarter of 2015 showed a new peek
in M&A activities within the payment industry.
A total of 49 transactions have been reported
with a total disclosed volume of USD 31.9 billion.
Among those deals Visa Inc.’s acquisition of Visa
Europe stands out, aiming to improve its com-
petitive positioning and the acquisition of Win-
cor Nixdorf by Diebold, focusing to improve cost
efficiency. Additionally, there have been a range
of deals driven by the desire to obtain access to
new technologies such as the block chain.
M&A activity and deal characteristics
A total of 49 M&A transactions were announced
in the fourth quarter of 2015. This represents a
36 % increase over the 36 deals announced in
the same period of 2014. The financial terms
of 18 transactions, with a total volume of
USD 31.9 billion, were disclosed. The substantial
increase in deal activities and deal volume in
the last 12 months reflects the growing maturity
of the payment landscape.
The deal value of Q4 was heavily driven by the
acquisition of Visa Europe by its former parent
company Visa Inc. for USD 23.1 billion. The under-
lying enterprise value was 61.8x profit before tax.
The rationale behind the deal is Visa Inc.’s goal
to improve its competitive position in Europe
and regain control over formerly owned subsidiar-
ies. Visa is targeting savings of USD 200 million
from the deal in 2020. Moreover, Visa aims to
streamline its investment efforts in technology
assets. It is expected that Visa Europe will
increase the rates currently charged to banks such
as Barclays and Lloyds, which previously owned
Visa Europe. Such rate increases are likely to
affect MasterCard’s competitive positioning and
might thereby be beneficial to other issuers. It will
be interesting to see how Visa will reposition itself
in the near future towards its customers and
users.
roberT kayser
Senior Associate
aposTolos psaras
Associate
philipp sTeinbrück
Associate
m&a acTiviTy
The median EBITDA-multiple from 2014 to 2015
decreased, from 14.7x to 13.1x. The median
revenue multiple from 2014 to 2015 increased by
25 %, from 2.8x to 3.5x. Global Payments’ acquisi-
tion of Heartland Payment Systems, valued at
USD 3.7 billion, equates to a multiple of 20.4x
EBITDA or 1.6x revenue. The acquisition of GI
Retail by Wirecard equates to a multiple of 19.9x
EBITDA or 7.5x revenue. WEX’s acquisition of
Ozforex for USD 629 million equates to a multiple
of 15.9x EBITDA or 6.3x revenue The enterprise/
revenue multiple for WEX’s USD 1.5 billion acqui-
sition of Electronic Funds is 10.0x.
Geographically, 49 % of the targets were based in
North America (2014: 46 %), followed by 33 % in
Europe (2014: 35 %) and 8 % in Asia/Pacific
(2014: 7 %). In a year on year comparison North
America gained importance while Europe “slowed
down” in comparison. However, the overall attrac-
tiveness of the payment market seems to main-
tain its momentum and the overall trend to
expand into new geographic areas by engaging in
inorganic growth strategies does not seem to
have slowed down. The acquisition of India based
Gi Retail by German based payment solutions
provider Wirecard was mainly driven by the goal
to continue the expansion into the Asian market.
The acquisition continues Wirecard’s broad inter-
national expansion, being one of the most active
investors in 2015. A similar strategy was followed
for example by FundingCircle, a UK based P2P
small business lending circle, which acquired Ger-
man based Zencap in order to expand its business
in central Europe.
Key drivers of and rationale for M&A activity
Overall, the emerging payment companies and
closely related alternative financial institutions
continue to become a serious threat to the tradi-
tional banking institutions. This trend fuels inves-
tors’ willingness to invest and acquire growing
payment players and scale operations across
national borders.
In Q4 2015 we saw an overall growth in the number
and volume of M&A transactions compared to the
previous quarters. Similar to the first half of the
2015, ‘payment acceptance devices’ represented
the most active segment of M&A activities. While
in H1 of 2015 about 19 transactions in payment
acceptance devices & software took place,
Target by region
North America Europe Asia
Middle East, Africa (MEA) Australia South America
figure 3: 2014-2015 funding comparsion
figure 1: Value and volume comparsion
M&A Market development
Disclosed value [USD billion]Number of transactions
Dis
clos
ed v
alue
[U
SD b
illio
n]
Num
ber
of t
rans
acti
ons
10
15
20
0
10
20
30
40
50
02014Q4
2014Q1
2015Q2
2015Q3
2015Q4
3638 39
4649
14.1
31.9
3.63.62.4
25
30
35
51.6
Revenue Multiple EBITDA multiple
figure 2: median value, revenue, ebItDa
Median enterprise value multiples
16x
14x
2x
9.5
14.5 14.7
3.72.8
13.1
12x
10x
8x
6x
4x
2012 2013 20152014
3.5
2 %2 %6 %
8 %
33 %
49 %
2014
2015
9
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payments Insight. Opinion.
we saw an astonishing increase of 72 %, totalling in
31 transactions in H2 of 2015. Next to our current
growth segments we also saw consolidation in
more mature segments such as Issuing and ATMs.
The main drivers to engage in mergers and acquisi-
tions were to achieve synergies and improve inter-
national footprint.
The global trend away from cash payments towards
card based/mobile based payments creates pres-
sure on the traditional ATM business. German
Wincor Nixdorf, currently No. 3 in the world, suc-
cumbed to the pressure and was sold to the Ameri-
can ATM producer Diebold, currently No. 2. Wincor
Nixdorf and Diebold aim to achieve cost savings of
USD 160 million by streamlining operations. Addi-
tionally, the merger will strengthen the merged
companies’ global reach, particular in North and
South America as well as Europe.
We saw a range of mergers and acquisitions aiming
to increase the competitive positioning of the com-
pany and/or gain competence in emerging tech-
nologies. US based Emida Technologies bought
Quippi in the beginning of October for an undis-
closed amount with the aim to enhance its portfo-
lio by a money transfer solution. Flywire bought
Uni-pay with a similar aim, enhancing peer transfer
in its customer offer. Another company growing
through mergers and acquisitions was Heartland,
one of America’s largest payment processing com-
panies. Heartland acquired Digital Dining, a pro-
vider of restaurants POS, at the end of October
2015. Through the acquisition Heartland aims to
increase its national reach. Later in Q4 Heartland
was bought by Global Payments. The move comes
as Global Payments is expanding its reach into the
SME segment and aims to foster the vertical inte-
gration of the company.
In Q4 there have been two major IPOs which were
expected by investors and have been a serious
market test for the currently high market valua-
tions. Firstly, there was First Data, which was taken
off the New York Stock Exchange in 2007 as one of
largest leveraged buyouts in history by KKR. During
that time the company reshaped itself aiming to
offer payment solutions to SMEs and fostering its
interaction with clients. The IPO was priced at USD
16, valuing the firm at USD 14 billon. However, First
Data reduced its IPO price substantially before
going public. Though shares were initially targeted
to be offered between USD 18 and USD 20 the firm
reduced the share price to USD 16. This move was
reasoned by heavy market volatility mainly caused
from a heavy stock devaluation in the Chinese
market during H2 of 2015. The rationale behind the
move is First Data’s need to reduce its debt load,
currently reducing the firm’s profitability and the
pressure on KKR to bring returns to its investors
and reduce its exposure to its largest asset. Since
its IPO the share price of First Data dropped by
nearly 26 % from USD 16 to USD 11.86 (19.02.2016).
The second major IPO was Square. The company,
which has not made money so far, has been valued
at around USD 6 billion
in the last Series E fund-
ing round. The IPO price
was set at USD 9 per
share, valuing the com-
pany at around USD 2.9
billion or more than
50 % (!) below the last
financing round. This
lower price tag was set
as managers of larger mutual funds and hedge
funds appeared to view Square’s completion as
stronger than initially thought of. The “Clover Go”,
a credit card reader that can be plugged into a
smartphone was introduced by First Data and
might affect the market share of Square in the
future. Though the share rose to over USD 13 per
share in November (23.11.2015) the price dropped
to USD 9.97 (-23 % as of 19.02.2016).
A comparably small but interesting deal from a
German perspective was the acquisition of PAY.ON
by ACI for USD 200 million in November 2015.
PAY.ON is a German based eCommerce payment
gateway service provider while ACI is a global
operating provider of electronic payments and
bank solutions. PAY.ON offers more than 300 pay-
ment methods over its SaaS platforms and is con-
nected to 160 banks. Through the white label
product PaySourcing PAY.ON’s eCommerce cus-
tomers can outsource payment and risk manage-
ment processes or purchase them via the cloud.
Through the acquisition, ACI gained access to
those valuable capabilities and can enhance its
product offering in the eCommerce space.
A technology that has gained momentum in the
overall H2 of 2015 was block chain which is the
backbone of the crypto currency Bitcoin (which we
already analysed in our last issue). The block chain
technology generally represents the potential to
reduce complexity and costs in the clearing and
settlement process and offers a range of applica-
tions in data storing and currency transfers.
Because of its tremendous potential impact on the
financial industry the block chain gained not only
attention from the media but also from investors
and even larger banking institutions such as BBVA,
Bank of America and Goldman Sachs. For example
Blockstack, an US based company offering “block-
chain-as-a-service” to financial institutions, was
bought by Digital Asset Holding from the USA.
This acquisition was
driven by Digital Asset’s
goal to offer a block
chain solution to its cli-
ent base and enhance
its product portfolio by
this technology. Block-
stack benefits from
Digital Asset’s platform
and client base and
aims to expand its technology and product range
within the new entity.
For 2016 we are optimistic that the payment indus-
try will remain in important driver for M&A. It will
be of high interest to see whether emerging tech-
nologies, such as the block chain or the increasing
use of mobile wallets, will substantially change the
business model of traditional financial institutions.
The slump in the market at the beginning of 2016
has made many investors nervous and put poten-
tial capital market measures temporary on ice.
Nevertheless, there are still rumours about the
eventual IPO of Alibaba’s finance arm which owns
AliPay and is considered as the “PayPal of the
East”. If filled for going public it could become one
of the biggest IPOs seen for a long time.
the global trend away from cash payments towards
card based/mobile based payments creates pressure on the traditional atm business
Sources: Bloomberg, Financial Times, Mergerstat,
Mergermarket, Nilson, Reuters, company publications
10
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payments Insight. Opinion.
venTure capiTal
sTefan Thomalla
Associate
Funding Activity
In the last quarter of 2015, 48 funding rounds were
recorded, accounting for a total disclosed volume
of USD 345.5 which
split into USD 334.3
million in equity and
USD 11.2 million in debt
finan cing. Al though this
quarter’s funding acti-
vity ex ceeded the pre-
vious by 23 % re gar-
ding the number of
deals closed, the total
(disclosed) volume de-
creased by approximately 27 %. As a consequence,
the funding volume per round, with an average of
USD 7.2 million, decreased by an astounding 40 %
compared to the previous quarter.
North America continues to lead the field (by
number of deals) and accounts for almost half of
the disclosed funding rounds. However, European
based payment FinTechs, with 11 funding rounds,
dominated in terms of financial volume. Out of
USD 345.5 million, USD 101.6 million were raised
in Europe, making it by total financial volume the
biggest winner of this quarter. Asia continues to
secure a place among the top three continents,
with a total amount of 11 deals (USD 57.9 million).
Oceania reported a total of 3 funding rounds,
around a 6 per cent share. However, due to the
largest funding of the quarter, Oceania finished
second, with a total funding volume of USD 77.8
million. Just two funding rounds were closed in
Africa in the fourth quarter of 2015. South America
did not report payment FinTech funding in the last
quarter of 2015.
Investment Trends
Payment acceptance devices and software’ held
onto the number one spot for the largest number of
funding rounds with a total of 17 and a disclosed
volume of USD 157.0 million. This indicates consis-
tent interest in the sector. Similarly to the previous
quarter, ‘payment acceptance devices and soft-
ware’ was the largest category in terms of
number of deals and size (with three out of the top
four funding rounds).
Nevertheless, the aver-
age value of funding
declined, reporting only
one very large funding:
iZettle (provider of a
mobile POS solutions),
who raised USD 68.2
million in a Series D fun-
ding from Intel Capital,
Zouk Capital LLP, Cre-
andum, Dawn Capital, Index Ventures, MCI Capital
SA and Northzone. The size of the deal is particu-
larly notable since
iZettle raised another
considerably large fun-
ding two months ear-
lier (USD 67.0 million,
August 2015). The two
lead investors have
been again Intel Capi-
tal and Zouk Capital
LLP. The remaining
deals were comparatively smaller in size (the sec-
ond largest deal was USD 28.0 million for Poynt).
Based on the number of deals, ‘alternative pay-
ment systems’ was the second largest funding seg-
ment of the last quarter of 2015 with 10 deals.
While the number of deals de creased only slightly
in comparison to Q2 2015 (11 deals), the financing
volume declined by more than 50 %. Nigerian
Paga, founded in 2009, obtained the segment’s
largest funding (USD 13.0 million, Series B). The
company’s mobile app allows users to send money
to any mobile phone number and consents the
beneficiary to redeem the payment at any Paga
agent across Nigeria or ATM via cardless with-
drawal. Due to a rather low card penetration within
the African continent, this money transfer option
appears promising in applicability.
Although only 1 funding round was closed in the
‘acquiring’ segment, with an amount of USD 72.0
million, Australian based Tyro Payments raised the
largest funding of fourth quarter, making the seg-
ment the second largest by the financial volume in
Q4. The funding round was led by Tiger Global
Management, supported by Mike Cannon-Brookes
and TDM Asset Management. Tyro Payments,
which has inked a partnership with PayPal in June
2015, is a merchant
credit, debit and EFTPOS
acquiring company.
Similarly to the trend
seen throughout the year,
‘money transfer’ was the
third largest segment by
the number of deals in
the last quarter of 2015.
Chinese Chillr, raised USD 7.0 million in Series A
funding from Uniqorn Ventures, Blume Ventures
and Sequoia Capital. The subsidiary of Indian
MobME Wireless allows P2P and P2B money
transfers.
edoardo cenci
Associate
funding activity by region
north & Central america 21
asia 11
europe 11
Oceania 3
africa 2
Total 48
funding activity by segment
payment acceptance devices + software
17
alternative payment systems 10
money transfer 8
Issuing 4
security 3
processing 2
Other 2
Data analytics 1
acquiring 1
Total 48
although this quarter’s funding activity exceeded the previous
by 23 % regarding the number of deals closed, the total (disclosed) volume decreased by approximately 27 %.
‘payment acceptance devices and software’ held onto the number
one spot for the largest number of funding rounds with a total of 17 and a disclosed volume of UsD 157.0 million
11
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payments Insight. Opinion.
Looking back to the whole year, the three largest
fundings were concluded in the first half of the
year. US based Affirm led the entire Venture
Capital field with a total funding of USD 275.0 mil-
lion from Spark Capital (lead investor), Andrees-
sen Horowitz, Jefferies Group, Khosla Ventures
and Lightspeed Venture Partners. The main prod-
uct of Affirm is an alternative credit card that
allows customers to pay installment loans for
online purchases in three months to a year.
Half of the top ten fundings are raised by compa-
nies that provide payment acceptance devices and
software. A total of USD 321.0 million were raised,
making the segment the second largest in 2015
behind ‘alternative payment systems’ (USD 350.0
million).
Conclusion
Overall, 2015’s Q4 represented a reasonably
strong end of the year with investments that
showed geographic diversity and a range of invest-
ment focuses. Nevertheless, the most distinctive
segments received similarly high attention
throughout the whole year and it can be expected
that this trend will remain in 2016.
largest deals (financial volume in usd million)
affirm 275
WorldRemit 100
Coinbase 75
tyro payments 72
iZettle 68
iZettle 67
GmO Internet 65
Lightspeed 61
shopkeep 60
transferWise 58
12
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payments Insight. Opinion.
Date Announced
Target Company Country TC Industry Buyer(s) (Country) Country Transaction value (USDm)
1 01/10/15 Uni-Pay United Kingdom
Provides tuition processing services Flywire USA N/D
2 06/10/15 FlowPay USA Provides a mobile payment technology platform AppTech USA N/D
3 06/10/15 Quippi USA Provides international money transfer services Emida Technologies USA N/D
4 06/10/15 Precidia Technologies Canada Premier provider of integrated payment solutions Merchant-Link USA N/D
5 12/10/15 Odysii Technologies Israel Provides software solutions for marketing intelligence at the point of sale
Gilbarco USA N/D
6 13/10/15 Curb USA Manufactures and distributes software applications for mobile travel management
Verifone USA N/D
7 15/10/15 mCash Norway Provides mobile payment solutions SpareBank 1 Norway N/D
8 15/10/15 Benaissance USA Provides software based billing and payment solutions
WEX USA 80
9 16/10/15 Tab Payments Canada Operates as mobile payments application for tastemaker diners
Velocity United Kingdom
N/D
10 19/10/15 MyPAY Myanmar Provides a mobile payment system fastacash Singapore N/D
11 19/10/15 Advanced Payment Systems USA Provides processing services Payscout USA N/D
12 19/10/15 Electronic Funds Source USA Provides payment processing services WEX USA 1,500
13 20/10/15 Zencap Germany Provides small- and medium-sized companies with a financing option
FundingCircle United Kingdom
N/D
14 21/10/15 Zwitch India Provides online payment, recurring billing, and mobile inapp payment services
Citrus Payment Solutions India N/D
15 21/10/15 LePotCommun.fr France Owns and operates online communal fund S-money France N/D
16 27/10/15 Gi Retail India Provides payment processing services Wirecard Germany 376
17 29/10/15 Blockstack USA Offers a “blockchain-as-a-service” to enable financial institutions to develop applications on a private blockchain
Digital Asset Holdings USA N/D
18 30/10/15 Digital Dining USA Provides a point-of-sale solution for the hospitality industry
Heartland Payment Systems USA N/D
19 02/11/15 Shopmium France Provides mobile shopping services Quotient Technology USA N/D
20 03/11/15 VISA Europe United Kingdom
Provides visa credit and debit cards Visa USA 23,100
21 03/11/15 Gazelle USA Offers an online electronics trade-in service Outerwall USA 18
22 04/11/15 Exatouch USA Provides cloud-hybrid point of sale software solutions
Electronic Payments USA N/D
23 04/11/15 PAY.ON Germany Provides payment technologies for service providers in global trade
ACI Worldwide USA 200
24 09/11/15 InterCard Germany Provides processing of cashless payments with banking, credit and store cards
Verifone USA N/D
25 11/11/15 Zoom-Cash (Legal Funding Payment System Business)
USA Provides legal funding payment services Necessity Funding Partners USA N/D
26 18/11/15 Product Support Solutions USA Provides technical solutions and innovative products Eckoh USA 8
27 19/11/15 Ozforex Australia Provides foreign exchange services Western Union USA 629
deal acTiviTy m&a Q4 2015
13
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payments Insight. Opinion.
Date Announced
Target Company Country TC Industry Buyer(s) (Country) Country Transaction value (USDm)
28 19/11/15 SEOshop Netherlands Provides e-commerce solutions Lightspeed POS Canada N/D
29 19/11/15 Uncover United Kingdom
Provides a mobile application that provides restaurant reservation
Velocity United Kingdom
N/D
30 19/11/15 Didix Netherlands Distributes electronic digital gift cards & box sets Blackhawk Network USA 41
31 23/11/15 Wincor Nixdorf Germany Provides information technology solutions and services for retail banks and retail industry
Diebold USA 1,756
32 23/11/15 Fintrax Ireland Provides multicurrency payment services Eurazeo France 335
33 24/11/15 Acquirer Systems Ireland Provides testing software and validation tools to the global payment industry
Underwriters Laboratories USA N/D
34 25/11/15 Playerize Network Canada Provides alternative payments and virtual rewards Perk.com USA 3
35 30/11/15 Paypoint United Kingdom
Provides online payment processing services Capita United Kingdom
20
36 30/11/15 Corona Labs USA Operates a cloud-based mobile rewards platform Perk.com USA 2
37 01/12/15 Calpian (US assets) USA Provides payment processing solutions Excel USA N/D
38 02/12/15 Social Money USA Provides digital deposit saving Q2 USA 11
39 03/12/15 PayLogic Germany Payment and administrative solution for venues entry ticket sales and handling
Direct Connect USA N/D
40 06/12/15 Near.in India Connects users with local businesses for home services through a marketplace application
Paytm India 2
41 08/12/15 AirTag France Provides mobile shopping solutions, in-store systems and secure payment applications
Morpho France N/D
42 09/12/15 Circle Plus USA Mobile app enabling merchants to accept credit card and Bitcoin payments (scans the credit card and processes payments)
Tarsin Mobile USA N/D
43 10/12/15 Trustev Ireland Offers solutions to decrease fraud in the ecommerce space
TransUnion USA 44
44 14/12/15 Diners Club Japan Japan Scheme that offers users (members) a variety of payment solutions as well as benefits and exclusive offers
Sumitomo Mitsui Trust Japan N/D
45 15/12/15 Heartland Payment Systems USA Provides bankcard payment processing services to merchants
Global Payments USA 3,696
46 22/12/15 Stratos Card USA Provides a all-in-one payment card Ciright One USA N/D
47 23/12/15 CashU United Arab Emirates
Provides a payment platform for e-commerce Genero Capital United Arab Emirates
N/D
48 28/12/15 Payzone UK United Kingdom
Consumer payments acceptance network Grovepoint Capital United Kingdom
52
49 30/12/15 Mobiltek Poland Offers mobile payment services EuroVentures Poland N/D
14
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payments Insight. Opinion.
Target (Country) Round Volume (USDm)
Investor(s) Funding (USDm)
Description
1 Chillr (CN) A 7.00 Sequoia Capital 7.50 Chillr provides a mobile app that allows P2P and P2B money transfers.
2 Coinplug (KR) B 5.00 SBI Investment 8.30 Coinplus is a provider of secure Bitcoin storage and payment processing.
3 Paga (NG) B 13.00 Adlevo Capital, Capricorn Investment Group, Goodwell West Africa, Omidyar Network
13.00 Nigeria based paga provides a solution that allows clients to use their phone as an electronic wallet.
4 Ripple Labs (US) A 4.00 CME Group, Santander Innoventures, Seagate 38.40 The peer-to-peer and virtual currency protocol Ripple can be used globally to make transactions in any available currency.
5 Spreedly (US) A 2.50 N/D 4.70 Spreedly a cloud-based credit card vault that allows users to work with multiple payment gateways simultaneously.
6 HonkMobile (CA) Seed 2.26 Impression Ventures 2.26 HonkMobile enables drivers to pay for a parking spot with their mobile phones; credit card is automatically billed and a receipt is sent via email.
7 Olpays (UK) Seed 0.05 N/D 0.05 United Kingdom based Olpays offers a multiple device payment and collection platform.
8 Toast (US) Debt 2.95 N/D 2.95 Toast is a tablet POS app for restaurants, cafes, and other businesses in the food service and hospitality industry.
9 iZettle (SE) D 68.23 Intel Capital, Zouk Capital LLP, Creandum, Dawn Capital, Index Ventures, MCI Capital SA, Northzone
244.04 Swedish iZettle offers mobile payment solutions, with a range of portable POS and free sales overview tools.
10 Zwipe (NO) B 5.00 Photon Future 8.50 Norway based Zwipe offers a fingerprint reader for contactless payment cards.
11 Payfone (US) Debt 5.50 Relay Ventures 45.50 Payfone provides a secure mobile authentication solution.
12 Poynt (US) B 28.00 Oak HC/FT, Matrix Partners, Nyca Partners, The Stanford StartX Fund, Webb Investment Network
28.00 Poynt offers a payment terminal solution for merchants using a multitude of acceptance hardware, e.g tablets, PCs, and mobile phone.
13 Citrus Payments (IN) C 25.00 Ascent Capital, Sequoia Capital, Econtext Asia and Beenos Asia
32.30 Citrus Payments provides online and mobile payment solutions for merchants and consumers.
14 Wave Crest Group (UK) E 14.00 Vesuvius Ventures 32.93 Wave Crest Group offers a platform that enables the development, integration and operation of prepaid card programs.
15 Pin Payments (AU) A 3.10 Vix Investments 3.10 Pin Payments is provider of an API for accepting credit card payments online in multiple currencies.
16 WB21 (US) Seed 2.27 Gastauer Family Office 2.94 United States based WB21 enables cross border payments and account opening in 18 currencies.
17 SlimTrader (US) A 1.00 Interswitch Inc. 1.00 SlimTrader is a provider of a solution, that allows consumers to purchase goods and services with their mobile devices.
18 SoftPay Mobile (HK) A 1.00 Life.SREDA 1.00 Provides mobile POS solution, that enables businesses and individuals to accept credit cards, debit cards, loyalty cards, etc.
19 Cookies App (DE) Seed 1.60 Benedikt Lehnert, Chad Fowler, Dennis Bemmann, Ehssan Darini, HV Holtzbrinck ventures, Raffael Johnen, Steen Kiedel
1.60 German Cookies App is a provider of a P2P payments solution, that allows clients to send and receive money with their smartphones.
20 FinTecSystems (DE) Seed Heilemann Ventures FinTecSystems offers data analytics and customized solutions for banks, financial services and payment processors.
21 Zeepay (GH) Seed 0.20 N/D 0.20 Ghana based Zeepay provides a mobile wallet for the unbanked as well as banked population.
22 Align Commerce (US) A 12.50 Kleiner Perkins Caufield & Byers, Digital Currency Group, Fenway Summer LLC, Pantera Capital, Recruit Venture Partners
12.50 Enable businesses and payment platforms to send and receive payments in local currency using the blockchain.
23 CARD.com (US) C 9.00 Fenway Summer Ventures, Growth Capital Strategy 12.00 United Stated CARD.com provides a prepaid payment card with personalized graphics.
24 Peppermint Innovation (AU) N/D 2.70 N/D Peppermint Innovation offers a comprehensive mobile banking, payments and remittance platform.
25 Goodbox (IN) A 2.50 Nexus Venture Partners 2.70 Goodbox is a chat application that allow customers to buy goods directly from businesses.
26 iBox (IN) Seed 1.30 ESN Group, Inventure Partners 4.80 iBox is a provider of a mPOS solution, that enables debit and credit card payments through smart phones or tablets.
27 Prepaid Financial Services (UK)
N/D 3.80 N/D 3.80 Prepaid Financial Services is an e-money institution that specialises in prepaid card issuing, acquiring and providing alternative banking solutions.
venTure capiTal acTiviTy & company profiles Q4 2015
15
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payments Insight. Opinion.
Target (Country) Round Volume (USDm)
Investor(s) Funding (USDm)
Description
28 ScramCard (HK) Seed Stewart Milne Group Hong Kong based ScramCard is an card issuer of a secure unique card, that combines a wallet function with tokenization.
29 Tyro Payments (AU) Venture 72.00 Tiger Global Management, Mike Cannon-Brookes, TDM Asset Management
103.59 Tyro Paymenrs is an independent acquirer, offering an EFTPOS facility processing credit, debit, gift, loyalty and Medicare cards.
30 Bee (US) Venture 4.60 FundersGuild 4.60 Bee provides bank accounts, debit cards and financial services.
31 Keypair (KR) B 5.00 N/D 5.00 South Korean Keypair issues NFC enabled cards with an one time password authentication via smartphones.
32 Clip (MX) A 8.00 Alta Ventures Mexico, American Express Ventures, Angel Ventures, Mexico Ventures, Sierra Ventures
8.00 Clip is a provider of a mPOS solution.
33 Rippleshot (US) Seed 1.20 SixThirty - FinTech Accelerator 1.20 United States based Rippleshot offers credit and debit card fraud detection technology.
34 Purse.io (US) Seed 1.00 Digital Currency Group,TA Ventures 1.30 Purse.io offers a solution that enables bitcoins payments for customers.
35 Paynear (IN) Seed 2.50 Mitesh Majithia 2.50 Paynear is a payment solution provider, that enables individuals & businesses of all sizes to easily manage their card payments.
36 Curve (UK) Seed 2.00 Ed Wray, London Co-investment Fund, Ricky Knox, Seedcamp, Speedinvest, Taavet Hinrikus
2.00 Curve offers an all in one card, the enables customers to consolidate all existing cards and accounts in one card with just one PIN.
37 TabbedOut (US) C 2.00 Alterna Capital Partners 41.01 Tabbedout eases the consumer (mobile) payment process within bars or restaurants, enabling the user to view and pay his tab through a mobile app.
38 TransferGo (UK) Seed 2.50 Mark Ransford, Clive Kahn, Practica Capital, Richard Tudor, Voria Fattahi
2.50 TransferGo offers online money transfer to send money abroad for migrants and businesses.
39 Gastrofix (DE) A 4.00 Entree Capital 4.00 German Gastrofix is a provider of an iPad POS-system for restaurant and hotels.
40 DotDashPay (US) Debt 0.25 Pejman Mar Ventures 0.25 DotDashPay offers a hardware and software platform that enables merchants to analyze and control their entire payments.
41 PayJoy (US) Debt 1.00 N/D 3.30 PayJoy offers a solution that allows customers to pay up-front purchases with monthly installments.
42 Streami Inc (KR) Seed 2.00 Bluepoint Partners, iCB, Shinhan Bank, TIPS 2.00 Streami provides a remittance platform that uses the blockchain technology.
43 The PayPro (UK) Seed 0.45 Idodi Venture Capital, Angel Garcia, Carlos Blanco, Carlos Guerrero, Daniel Lacalle, Didac Lee, Lanta Capital Holdings, Marc Vidal, Mauricio Prieto, Tomas Diago
0.45 United Kingdom based The PayPro offers a payment platform for SMEs in 25 currencies in order to avoid banks charges.
44 DipJar (US) Seed 2.40 Bolt, Charge Ventures, Corazon Capital, Project 11 Ventures
2.82 DipJar provides both the hardware and software for paying tips by "dipping" your credit card in a device rather than paying cash.
45 MobiKwik (IN) B 6.60 Sequoia Capital,Tree Line Asia 36.85 MobiKwik is a mobile wallet app for Indian customers who use it for shopping, P2P money transfer and bill payments.
46 Ayannah (US) B 3.00 500 Startups, BEENEXT, Beenos Partners, Golden Gate Ventures, GREE Ventures, IMJ Investment Partners Pte. Ltd, Life.SREDA, Wavemaker Partners
7.50 Ayannah is a provider of online and mobile payment services aiming the unbanked in emerging markets and unbanked migrants in OECD countries.
47 Payable (US) Venture General Catalyst Partners 2.10 Payable offers contractors the ability to manage and analyse payments as well as having Onboarding, Work-Tracking analytics.
48 Nxt-ID (US) Debt 1.50 N/D 3.82 Nxt-ID is a provider of various biometric solutions for the mobile platforms, access control, and law enforcement facial recognition market.
16
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payments Insight. Opinion.
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methodologies. The industry practices are complemented by two cross-functional service lines: Corporate Finance and INNOVALUE Solutions.
In the payments practice our clients range from high-growth mobile payment startups to established financial institutions or telecom companies and from cut-
ting-edge strategic players to high-profile private equity and venture capital investors. We develop and implement tailored solutions on topics of strategic impor-
tance – including Growth, Efficiency and M&A – on engagements across Europe and beyond. Our clients uniquely benefit from the passion of our consultants in
the payments industry, through extensive international project experience, methodologies and the use of very current and pertinent data and benchmarks.
francesco burelli paRtneR phone +44 203 283 43 25 mobile +44 788 781 30 03 [email protected] London office
kai-chrisTian claus manaGInG paRtneR phone +49 40 41 30 36 13 mobile +49 163 413 13 63 [email protected] Hamburg office
andreas haberseTzer paRtneR phone +44 203 283 43 25 mobile +44 795 735 86 98 [email protected] London office
frankfurT
Siesmayerstraße 2160323 Frankfurt am MainGermany
london
3 More London RiversideLondon, SE1 2REUnited Kingdom
hamburg
Heimhuder Straße 6920148 HamburgGermany www.innovalue.com
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