The news: Major payment providers are leaning into mergers and acquisitions (M&As) to bolster their product suites and better serve customers.
Why these deals matter: Macroeconomic headwinds are forcing companies to be more judicious with spending this year. They’re focusing on M&A deals that have a direct impact on their value proposition.
The bigger picture: Fintech M&As defied a broader market slump last year—global fintech M&A activity increased 46% year over year (YoY) and reached 591 deals in H1 2022, which also marked a 70% increase from the same period in 2019, according to Hampleton Partners.
Factors like lower fintech funding rounds and valuations are making M&As a more attractive venture for larger firms. We expect incumbent players to seize the opportunity and buy up fintechs over the next five years. This will help payment providers beef up their solutions to attract more clients and grow their market share.
This article originally appeared in Insider Intelligence's Payments Innovation Briefing—a daily recap of top stories reshaping the payments industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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