payments - Innovalue

payments
Insight. Opinion.
vol 12
CONTENT
1 The future of merchant
acquiring and processing –
an industry forecast
The future of merchant
acquiring and processing –
an industry forecast
Andreas Habersetzer discusses the future of merchant
acquiring and processing.
3
Andreas Habersetzer
Digital banking
Partner
INNOVALUE reviews the digital banking and payments
and its applications change the nature of payments and facilitate the launch of new services
and service providers?
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 payment acceptance and mobile services: A reality check at
large merchants in Germany and the UK”.
7
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.
Public market valuations
and the market environment
Stocks have seen a rough start into 2016 as meaningful
The attempt to forecast industry developments over
the next five years raises a number of questions:
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
How will e-, m- and social commerce (via platforms link Facebook, Instagram and Pinterest) or
the Internet of Things (IoT) drive electronic payments? What other growth drivers are there?
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,
How will regulatory initiatives like IFR, PSD2 and
AML regulation influence profitability, business
models and the competitive landscape?
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
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?
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
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 merchants eventually?
How will infrastructure developments like realtime payment systems (RTPS) or the blockchain
How will merchant requirements evolve (e.g.
“omni-channel”) and drive change in the industry? 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 forecasts net revenue and profit pools for POS- and
e-commerce acquiring, processing, terminal sales,
leasing and maintenance, gateway and other products and services for the European countries. As a
result, INNOVALUE expects the European net revenue 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).
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 volumes 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.
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. multicurrency / -channel /
Acquiring in Europe is -payment method reconciliation and collecstill an attractive,
tion) that marginalise
growing business for
the task of acquirer
five years (…) Europe is
processors.
International capabilities
Few payment service providers are equipped to
capture the international
growth opportunity and
service merchants globally.
Of the Top 20 global
the next
acquirers
by
number
of transactions processed however outshined by other
(according to the Nilson regions and markets, particularly
Business model
Report), First Data is
evolution
in China, Southeast Asia and
closest to having a global
Therefore, the business
Latin America
footprint (albeit on differmodels of acquirers
ent platforms). Global payand processors have
ments and Elavon have operations on more than
to evolve in order to stay competitive and maintain
two continents. Wirecard, although not among the
the merchant relationship. Acquirers have to
leading global payment processors, has made
evolve to business solutions providers, serving
numerous acquisitions in high growth markets,
the needs of merchants beyond payments. Within
ranging from Singapore, to Indonesia, New Zealand,
payments, successful merchant acquirers are
South Africa, Turkey, Brazil etc. over the last few
providing a full suite of international omni-channel
years.
payment solutions. In addition to payments
2
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. Providing 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 consolidation and a significant reduction of the number of
players in the European market.
Page 1
payments
3
Insight. Opinion.
Digital banking
Francesco Burelli
Partner
Megan John
Manager
The digital banking journey started over thirty years
ago when “tele-banking” services allowed customers 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 concept of digital banking to one whereby customers
could interact with their bank anytime and anywhere – 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 providers (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 capabilities 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 process 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.
Figure 1: Digital development timeline
1
Source: The Telegraph I
2
Source: HSBC
Page 1
payments
Insight. Opinion.
4
A major challenge for incumbents is their legacy
regulatory approval in 2015. These start-ups are
systems. Many banking systems are decades old,
focusing on areas with less regulation (e.g. lendthey were developed in the 1970s or 1980s to
ing and payments) and are likely to stay as niche
support a business model where a bank branch
providers given the expense (~GBP 10 million) and
closed at 5pm each day and accounts were settime (4 – 40 months) to obtain a banking license1.
tled overnight. These systems were therefore
built around “batch proThe new players
cesses” that could run at
will gain market
The digital banking
specified intervals. Today’s
share from the
landscape of the
business models are trying
existing providers future will include
to provide customers with
in three years,
24/7 access to up to date
potentially 20 % of
both incumbents and new
information and therefore
US lending will be
players, all serving the
need to operate as “realthrough alternative
customer anywhere, anytime
time” systems. Changing
providers.2 Howthe underlying infrastrucever, they will not
ture is time consuming and costly and, since the
replace them – the incumbents have legacy cusadvent of the iPhone (which made real time much
tomers and the ability to invest in new customer
more of a necessity), banks have also been reactacquisition. They are also investing in innovation
ing to the financial crisis with most of their availand they are partnering with the new providers
able investment costs being spent on regulatory
(for example BBVA’s investment in Atom bank).
driven changes.
The digital banking landscape of the future will
include both incumbents and new players, all
While the incumbent banks focus on how to
serving the customer anywhere, anytime.
transform their legacy systems, developed in the
pre-digital era, a plethora of fintech start-ups
have emerged. These typically focus on a single
Figure 2: Fintech start-ups
product offering and have a digital enabled archiby product category
tecture at their core. They have created a new
financial services marketplace, often leveraging a
peer-to-peer approach – allowing savers and borrowers to transact through an app or website and
without the traditional banking infrastructure.
Zopa launched in 2004, providing peer to peer lending,
Wonga in 2008 with
online loans and
the UK’s first
digital
bank
Atom gaining
1
Source: thefinanser.com I
2
Source: Goldman Sachs
Page 1
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5
Insight. Opinion.
Contactless payments at leading
retailers: Germany still lags behind
Thomas Grohnert
Principal
Kalle Dunkel
Senior Associate
Contactless payment acceptance at leading retailshop without integration in in-store systems. This
ers in Germany continues to be the exception. Just
kind of setup is only found at one in ten of the large
under a third (30 %) enable contactless payments
UK retailers. This is a clear indication to us that a
via smartphone, credit
degree of uncertainty
card or wearables like
about the expected cusWe already know of
smartwatches and bra­
tomer behavior prevails
celets. In contrast, in the
at the German mermultiple merchants
United Kingdom the figchants. The investthat intend to introduce both
ure is already at 63 %. In
ments in fully integrated
credit card and contactless
addition, both markets
omni-channel retailing
differ strongly with
systems are avoided, at
acceptance in 2016
regard to the offered
the same time they do
smartphone apps. These and more results are
not want to miss the trend completely.
shown in our recent white paper, in which the payHowever, these limited solutions lack true cusment acceptance and mobile services of 60 major
tomer value. The study shows 43 % of large
retailers in the UK and Germany are compared.
All of the analysed UK merchants accept credit
cards, while about 27 % of the merchants in Germany 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: innovators 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 simple services such as a mobile version of the online
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 services to enable omni-channel retail or to drop
their own native apps all together.
Figure 1: Analysed merchants per maturity level in %
63 %
43 %
37 %
27 %
30 %
GER
0%
0% 0%
UK 0
1
2
3
Cash only
Debit cards
Credit cards
Contactless
(card, phone,
wearable)
Figure 2: Analysed merchants per maturity level in %
43 %
33 %
33 %
27 %
23 %
7%
10 %
7%
3%
13 %
GER
UK 0
1
2
3
4
No app
Pure content
Online
services
via app
Interaction
with store
system
Proximity
payment
Page 1
payments
6
Insight. Opinion.
Conclusion
INNOVALUE White Paper
Through the combined evaluation of payments
In the white paper "Merchant payment acceptance
acceptance and mobile VAS we believe that both
and mobile services: A reality check at large merthe innovation focus (Innovators and First Movers)
chants in Germany and the UK" INNOVALUE analand the core business focus (Player without mobile
yses payment options and customer apps of
offerings) are valid approaches. The “stuck in the
60 large retailers in Germany and the UK in seven
middle position” (Follower) should be avoided.
verticals (food, DIY & gardening, fashion & clothOffering pure online sering, department store,
vices via an app alone,
personal care, consumer
without true gains for
Pure online services electronics, furniture &
the consumer, is not
decoration). The compavia an app alone,
instrumental in achievnies studied have a maring business success in without true gains for the
ket share of 50 % (UK)
retail.
or 37 % (D).
consumer, is not instrumental
in achieving business success
in retail
Please visit the publications section at
www.INNOVALUE.com if you are interested
in reading the full report.
Page 1
payments
7
Insight. Opinion.
Public market valuations
and the market environment
Markus Massem
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
Stocks have seen a rough start into 2016 as meanas a sign that the economy is thought to improve.
ingful slides occurred globally following what was
The great majority of public companies in our
a strong year 2015. The S&P 500 lost 7 % and the
payments universe (see end of article for compoSTOXX 600 13 % over the last
sition) have ended up
three months. The declines
lower at the end of the
The great majority
were driven by a number of
three month period
of companies in
factors, including concerns
(with only 5 out of 21
our payments
over global growth prospects.
stocks posting gains).
universe have ended up
The growth of the Chinese
The correction in the
economy in 2015 was the
market at the beginlower at the end of the three
lowest since 1990, but a US
ning of the year was
month period, with the
recession is currently not
one of the main drivers
correction in the market at
seen as likely. Other imporfor this overall decline,
the beginning of the year
tant factors that have been
in addition to company
pushing markets downwards
being one of the main drivers specific events. Since
include the movement of oil
the beginning of the
for the decline
prices and concerns about the
year, only 6 out of the
general health of European banks. Some relief
21 stocks are still in positive territory. The overall
came from the minutes of the ECB's January
payment index is down by 11 % over the past three
meeting, which reinforced a possibility that policy
months and 7 % since the beginning of the year.
makers will enact further stimulus measures for
The acceptance bucket lost 15 % over the three
months period. Global Payments, which was
The payments universe (alphabetical order):
among the strongest performers in the accepAcceptance: First Data Corp, Global Payments,
tance bucket in 2015, has lost 17 % in market
Ingenico, PayPoint, Vantiv, Verifone, WorldPay
value over the past 3 months. The company’s
Processing: Cielo, Euronet Worldwide, FIS,
share price has declined continuously since the
Fiserv, Total System Services (TSYS)
announcement of the acquisition of Heartland
PSP/Online payments: PayPal, Paysafe, Wirecard
Payments at USD 100 a share in cash and stock
Issuing/Prepaid solutions: FleetCor, Green Dot, WEX
on December 15th. Ingenico tumbled 12 % after
Schemes: American Express, MasterCard, Visa
JPMorgan downgraded the company following
Sources: Innovalue research and company filings;
the release of 2015 results. Margin guidance for
Google Finance for share price data
2016 was weak at 21 % compared to the 23.3 %
Manager
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 market value, with most of the decline occurring in
February, even dipping below USD 10 in early February. 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 estimate 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 payments category gained about 4 % over the last
three months. Paysafe demonstrated the strongest 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
110
105
100
95
90
85
80
75
17.11.15
Acceptance
01.12.15
Processing
15.12.15
PSP/Online payments
29.12.15
Issuing/Prepaid
12.01.16
Schemes
26.01.16
09.02.16
S&P 500
Figure 1: Indexed stock price performance last 3 months February 18th 2016
Page 1
payments
8
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 customers 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 solutions 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 speculation 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.
70 %
60 %
62.8 %
61.4 %
50 %
46.4 %
40 %
36.5 %
30 %
29.6 %
20 %
23.9 %
21.8 %
26.0 %
23.8 %
28.5 % 26.2 %
15.5 %
10 %
7.1 % 6.5 %
2.4 %
0 %
Revenue growth CY 14-15
Ebitda margin CY 14
Ebitda margin CY 15
Figure 2: Payments universe operational metrics as of February 18th 2016
30.0x
25.0x
24.8
20.0x
20.0
17.6
15.0x
14.2
10.0x
9.9
9.7
6.4
5.0x
3.4
4.3
4.0
0.0x
EV/Rev CY 14
2.5
4.2
5.2
16.3
15.4
12.9
10.8
10.5
8.6
3.8
EV/Rev CY 15
EV/EBITDA CY 14
EV/EBITDA CY 15
Figure 3: Payments universe trading multiples as of February 18th 2016
Acceptance
Processing
PSP/Online payments
Issuing/Prepaid
Schemes
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payments
9
Insight. Opinion.
M&A Activity
Apostolos Psaras
Associate
Philipp Steinbrück
Associate
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 competitive positioning and the acquisition of Wincor 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 underlying 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 subsidiaries. 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.
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’ acquisition 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 acquisition 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 attractiveness of the payment market seems to maintain 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 international 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 German based Zencap in order to expand its business
in central Europe.
M&A Market development
49
46
35
30
38
36
25
39
31.9
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,
40
30
20
15
20
14.1
10
5
2.4
0
2014
Q4
10
3.6
1.6
3.6
2014
Q1
Number of transactions
0
2015
Q2
2015
Q3
2015
Q4
Disclosed value [USD billion]
Figure 1: Value and volume comparsion
Median enterprise value multiples
14.5
16x
14.7
14x
12x
10x
13.1
9.5
8x
6x
3.7
4x
2.8
3.5
2x
2012
2013
Revenue Multiple
2014
2015
Ebitda multiple
Figure 2: Median value, revenue, Ebitda
Target by region
6 %
2 %
2 %
2015
2014
8 %
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 traditional banking institutions. This trend fuels investors’ willingness to invest and acquire growing
payment players and scale operations across
national borders.
50
Number of transactions
Senior Associate
Disclosed value [USD billion]
Robert Kayser
49 %
33 %
North America
Europe
Asia
Middle East, Africa (MEA)
Australia
South America
Figure 3: 2014-2015 funding comparsion
Page 1
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10
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 acquisitions were to achieve synergies and improve international footprint.
The global trend away from cash payments towards
card based/mobile based payments creates pressure on the traditional ATM business. German
Wincor Nixdorf, currently No. 3 in the world, succumbed to the pressure and was sold to the American ATM producer Diebold, currently No. 2. Wincor
Nixdorf and Diebold aim to achieve cost savings of
USD 160 million by streamlining operations. Additionally, 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 company and/or gain competence in emerging technologies. US based Emida Technologies bought
Quippi in the beginning of October for an undisclosed amount with the aim to enhance its portfolio 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 companies. Heartland acquired Digital Dining, a provider 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 integration 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 valuations. 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).
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 applications 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 “blockThe second major IPO was Square. The company,
chain-as-a-service” to financial institutions, was
which has not made money so far, has been valued
bought by Digital Asset Holding from the USA.
at around USD 6 billion
This acquisition was
in the last Series E funddriven by Digital Asset’s
The global trend
ing round. The IPO price
goal to offer a block
away from cash
was set at USD 9 per
chain solution to its clipayments towards
share, valuing the coment base and enhance
pany at around USD 2.9
its product portfolio by
card based/mobile based
billion or more than
this technology. Blockpayments creates pressure on stack benefits from
50 % (!) below the last
the traditional ATM business
financing round. This
Digital Asset’s platform
lower price tag was set
and client base and
as managers of larger mutual funds and hedge
aims to expand its technology and product range
funds appeared to view Square’s completion as
within the new entity.
stronger than initially thought of. The “Clover Go”,
a credit card reader that can be plugged into a
For 2016 we are optimistic that the payment indussmartphone was introduced by First Data and
try will remain in important driver for M&A. It will
might affect the market share of Square in the
be of high interest to see whether emerging techfuture. Though the share rose to over USD 13 per
nologies, such as the block chain or the increasing
share in November (23.11.2015) the price dropped
use of mobile wallets, will substantially change the
to USD 9.97 (-23 % as of 19.02.2016).
business model of traditional financial institutions.
The slump in the market at the beginning of 2016
A comparably small but interesting deal from a
has made many investors nervous and put potenGerman perspective was the acquisition of PAY.ON
tial capital market measures temporary on ice.
by ACI for USD 200 million in November 2015.
Nevertheless, there are still rumours about the
PAY.ON is a German based eCommerce payment
eventual IPO of Alibaba’s finance arm which owns
gateway service provider while ACI is a global
AliPay and is considered as the “PayPal of the
operating provider of electronic payments and
East”. If filled for going public it could become one
bank solutions. PAY.ON offers more than 300 payof the biggest IPOs seen for a long time.
ment methods over its SaaS platforms and is connected to 160 banks. Through the white label
Sources: Bloomberg, Financial Times, Mergerstat,
product PaySourcing PAY.ON’s eCommerce cusMergermarket, Nilson, Reuters, company publications
tomers can outsource payment and risk management 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
Page 1
payments
Insight. Opinion.
11
Venture Capital
Stefan Thomalla
Investment Trends
While the number of deals de­creased only slightly
Payment acceptance devices and software’ held
in comparison to Q2 2015 (11 deals), the financing
onto the number one spot for the largest number of
volume declined by more than 50 %. Nigerian
Edoardo Cenci
funding rounds with a total of 17 and a disclosed
Paga, founded in 2009, obtained the segment’s
Associate
volume of USD 157.0 million. This indicates consislargest funding (USD 13.0 million, Series B). The
tent interest in the sector. Similarly to the previous
company’s mobile app allows users to send money
Funding Activity
quarter, ‘payment acceptance devices and softto any mobile phone number and consents the
In the last quarter of 2015, 48 funding rounds were
ware’ was the largest category in terms of
beneficiary to redeem the payment at any Paga
recorded, accounting for a total disclosed volume
number of deals and size (with three out of the top
agent across Nigeria or ATM via cardless withof USD 345.5 which
four funding rounds).
drawal. Due to a rather low card penetration within
split into USD 334.3
Nevertheless, the averthe African continent, this money transfer option
Although this quarter’s
million in equity and
age value of funding
appears promising in applicability.
funding activity
USD 11.2 million in debt
declined, reporting only
finan­cing. Al­though this
Although only 1 funding round was closed in the
exceeded the previous one very large funding:
quarter’s funding actiiZettle (provider of a
‘acquiring’ segment, with an amount of USD 72.0
by 23 % regarding the number
vity ex­ceeded the premobile POS solutions),
million, Australian based Tyro Payments raised the
of deals closed, the total
vious by 23 % re­­
gar­
who raised USD 68.2
largest funding of fourth quarter, making the segding the number of
million in a Series D fun­
ment the second largest by the financial volume in
(disclosed) volume decreased
deals closed, the total
ding from Intel Capital,
Q4. The funding round was led by Tiger Global
by approximately 27 %.
(disclosed) volume deZouk Capital LLP, CreManagement, supported by Mike Cannon-Brookes
­creased by approximately 27 %. As a consequence,
andum, Dawn Capital, Index Ventures, MCI Capital
and TDM Asset Management. Tyro Payments,
the funding volume per round, with an average of
SA and Northzone. The size of the deal is particuwhich has inked a partnership with PayPal in June
USD 7.2 million, decreased by an astounding 40 %
larly notable since
2015, is a merchant
‘Payment acceptance credit, debit and EFTPOS
compared to the previous quarter.
iZettle raised another
devices and software’ acquiring company.
considerably large fun­
Funding Activity by Region
ding two months earheld onto the number
lier (USD 67.0 million,
Similarly to the trend
North & Central America
21
one spot for the largest
August 2015). The two
seen throughout the year,
Asia
11
number
of
funding
rounds
with
lead investors have
‘money transfer’ was the
Europe
11
been again Intel Capithird largest segment by
a
total
of
17
and
a
disclosed
Oceania
3
tal and Zouk Capital
the number of deals in
Africa
2
volume of USD 157.0 million
LLP. The remaining
the last quarter of 2015.
Total
48
deals were comparatively smaller in size (the secChinese Chillr, raised USD 7.0 million in Series A
ond largest deal was USD 28.0 million for Poynt).
funding from Uniqorn Ventures, Blume Ventures
North America continues to lead the field (by
and Sequoia Capital. The subsidiary of Indian
Funding Activity by Segment
number of deals) and accounts for almost half of
MobME Wireless allows P2P and P2B money
Payment acceptance devices +
17
the disclosed funding rounds. However, European
transfers.
Software
based payment FinTechs, with 11 funding rounds,
Alternative payment systems
10
dominated in terms of financial volume. Out of
USD 345.5 million, USD 101.6 million were raised
Money transfer
8
in Europe, making it by total financial volume the
Issuing
4
biggest winner of this quarter. Asia continues to
Security
3
secure a place among the top three continents,
Processing
2
with a total amount of 11 deals (USD 57.9 million).
Other
2
Oceania reported a total of 3 funding rounds,
Data analytics
1
around a 6 per cent share. However, due to the
Acquiring
1
largest funding of the quarter, Oceania finished
second, with a total funding volume of USD 77.8
Total
48
million. Just two funding rounds were closed in
Africa in the fourth quarter of 2015. South America
Based on the number of deals, ‘alternative paydid not report payment FinTech funding in the last
ment systems’ was the second largest funding segquarter of 2015.
ment of the last quarter of 2015 with 10 deals.
Associate
Page 1
payments
12
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 million from Spark Capital (lead investor), Andreessen Horowitz, Jefferies Group, Khosla Ventures
and Lightspeed Venture Partners. The main product 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 companies that provide payment acceptance devices and
Largest deals
(financial volume in USD million)
Affirm
275
WorldRemit
100
Coinbase
75
Tyro Payments
72
iZettle
68
iZettle
67
GMO Internet
65
LightSpeed
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).
61
Shopkeep
60
TransferWise
58
Conclusion
Overall, 2015’s Q4 represented a reasonably
strong end of the year with investments that
showed geographic diversity and a range of investment 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.
Page 1
payments
13
Insight. Opinion.
DEAL Activity M&A
Q4 2015
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
Digital Asset Holdings
USA
N/D
18
30/10/15
Digital Dining
USA
Offers a “blockchain-as-a-service” to enable
financial institutions to develop applications
on a private blockchain
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
Page 1
payments
14
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
Tarsin Mobile
USA
N/D
43
10/12/15
Trustev
Ireland
Mobile app enabling merchants to accept credit
card and Bitcoin payments (scans the credit card
and processes payments)
Offers solutions to decrease fraud in the ecommerce
space
TransUnion
USA
44
44
14/12/15
Diners Club Japan
Japan
Sumitomo Mitsui Trust
Japan
N/D
45
15/12/15
Heartland Payment Systems
USA
Scheme that offers users (members) a variety
of payment solutions as well as benefits and
exclusive offers
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
Page 1
payments
15
Insight. Opinion.
Venture Capital Activity & Company Profiles
Q4 2015
Target (Country)
Round
Investor(s)
A
Volume
(USDm)
7.00
Description
Sequoia Capital
Funding
(USDm)
7.50
1
Chillr (CN)
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
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
Intel Capital, Zouk Capital LLP, Creandum,
Dawn Capital, Index Ventures,
MCI Capital SA, Northzone
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
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
Benedikt Lehnert, Chad Fowler, Dennis Bemmann,
Ehssan Darini, HV Holtzbrinck ventures,
Raffael Johnen, Steen Kiedel
Heilemann Ventures
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
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
Kleiner Perkins Caufield & Byers, Digital Currency
Group, Fenway Summer LLC, Pantera Capital,
Recruit Venture Partners
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
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.
Chillr provides a mobile app that allows P2P and P2B money transfers.
FinTecSystems offers data analytics and customized solutions for banks,
financial services and payment processors.
Peppermint Innovation offers a comprehensive mobile banking,
payments and remittance platform.
Page 1
payments
16
Insight. Opinion.
Target (Country)
Round
Volume
(USDm)
Investor(s)
Funding
(USDm)
28
ScramCard (HK)
Seed
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
38
TransferGo (UK)
Seed
2.50
Mark Ransford, Clive Kahn, Practica Capital,
Richard Tudor, Voria Fattahi
2.50
Tabbedout eases the consumer (mobile) payment process within
bars or restaurants, enabling the user to view and pay his tab through
a mobile app.
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
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
Idodi Venture Capital, Angel Garcia, Carlos Blanco,
Carlos Guerrero, Daniel Lacalle, Didac Lee,
Lanta Capital Holdings, Marc Vidal, Mauricio Prieto,
Tomas Diago
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
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
500 Startups, BEENEXT, Beenos Partners,
Golden Gate Ventures, GREE Ventures,
IMJ Investment Partners Pte. Ltd, Life.SREDA,
Wavemaker Partners
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
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.
Hong Kong based ScramCard is an card issuer of a secure unique
card, that combines a wallet function with tokenization.
Stewart Milne Group
1.50
Description
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payments
Insight. Opinion.
17
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