The news: Incumbent payment providers are capitalizing on this year’s funding slump to explore acquisitive growth opportunities.
What do Visa and Fiserv stand to gain?
The bigger picture: Excluding Stripe’s $6.5 billion raise, Q1 global fintech funding fell 12% and deal count dropped for the fourth straight quarter, per CB Insights. The harsh funding environment for payment startups and fintechs is creating opportunities for incumbent firms with deep pockets.
Expect legacy payment providers to nab smaller firms on the cheap to add new technology, expand market share, and attract customers quicker than through organic growth. But economic uncertainty will force firms to exercise prudence when considering buyouts and likely prioritize lower-risk deals that will add value faster.
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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