Carding Forum
Professional
- Messages
- 2,788
- Reaction score
- 1,363
- Points
- 113
A series of landmark transactions took place in the payment market since the beginning of the year
TOP-7 transactions in payments.
Payments mergers and acquisitions are changing the scenario. If earlier a large company simply bought a small startup, now the negotiations are almost on an equal footing. Negotiating deals takes months, sometimes involving competitors and several rounds of raising the final price.
In this article, the PaySpace Magazine editors have collected the brightest deals in the field of money transfers, processing and payment security, which were announced or completed in 2019.
The companies announced the deal in March 2021 and announced the closure in July.
Transfast is an American company that serves international money transfers through its own network. Today it has access to 90% of the world's bank accounts and a similar percentage of the population. As well as 200 thousand cash withdrawal points in 120 countries.
For companies that make cross-border payments to their suppliers and partners, this deal will make transactions more predictable, faster and cheaper. After all, it is unprofitable for small and medium-sized businesses to wait several days for the payment to pass, or pay a high commission for its execution.
For Mastercard, the acquisition of Transfast is an increase in competitiveness in the field of transfers between accounts. As well as business diversification and brand maintenance outside the United States.
After lengthy negotiations, Visa took control of Earthport in May 2021.
Earthport is a UK cross-border payment service through the largest independent network ACH (Automated Clearing House). Due to the fact that this company maintains partnerships with banks in 80+ countries, businesses can pay with their partners directly, bypassing intermediary banks.
In addition, Earthport is one of the first companies to use distributed technology to process payments. In 2014, the company struck a deal with Ripple, becoming a member of Ripple Net. This system allows you to quickly and securely send P2P payments anywhere in the world. Transactions within the network are not controlled by any central bank in the world and can be processed with minimal fees.
For Visa, this deal means expanding the service - transfers can be made not only from card to card, but also through the bank accounts of individuals, businesses and government agencies.
For users, the deal will bring solutions for different use cases, including salary transfers as well as international transfers between individuals and companies. This will make it easier to get paid for contractors from all over the world who work for various international companies.
Interestingly, Mastercard also wanted to buy Earthport. But Visa's offer turned out to be more interesting. After several rounds of offers from both payment systems, in February the company offered a better deal - about $ 319 million, which is 23% more than the initial offer of Visa and 12% more than Mastercard. The final purchase price was $ 321 million.
The deal was announced in July 2021.
Acompay is a b2b payment provider that helps business clients make payments to their suppliers, manage business expenses and improve cash flow.
AMEX believes that this deal will provide customers with ready-made automated solutions for settlements with suppliers anywhere in the world.
On the one hand, the emergence of two technology and payments giants will empower merchants and banks. On the other hand, market consolidation will increase competition. And so far it is impossible to determine exactly what problems the innovation race may lead to.
The deal was announced in January 2019, and they promise to close in the second half of the year for $ 22 billion.
Fiserv is an American technology solutions provider for the financial sector.
First Data is an American company that processes credit card payments.
After the merger, the companies will focus on creating a universal payment platform. The companies plan to provide a full range of payment and financial services, including invoice processing and digital banking solutions, card processing, e-commerce, and more.
Fiserv's customer service capabilities will expand significantly, from new customer registrations to the many ways to process physical or digital payments.
The merger should also lead to large financial gains. The deal is expected to generate additional profits of $ 500 million over five years. And the savings over the same period will be about $ 900 million.
In March 2021, the companies announced a deal, but the integration has not yet been completed. The announced acquisition cost is $ 35 billion.
FIS is a financial technology provider with a focus on payment and banking solutions that empower retailers, financial institutions, capital markets and businesses around the world.
The merger of the two companies will lead to the creation of a single organization for a full range of global payment solutions - from issuance to acquiring online and offline, from traditional to integrated payments.
The deal was announced in March 2021.
Ethoca is a global provider of e-commerce fraud prevention technology solutions. The principle of operation involves notifying the merchant of a suspicious payment in real time. The company's network unites more than 5 thousand merchants and 4 thousand financial institutions around the world.
For Mastercard, this integration means better digital security.
For merchants and card issuers, it benefits from lower operating costs by reducing fraud. Merchants will be able to reject suspicious payments right away, avoiding the chargeback process.
The deal was announced in July 2021.
Verifi is a company that specializes in payment dispute resolution. Verifi's technology should help financial companies reduce the number of chargebacks by promptly resolving the dispute in real time and with the participation of all parties to the transaction.
Visa believes that integrating Verifi technology into its risk management services will enable merchants to engage in real-time dialogue with their customers and partners. This, in turn, will allow not to bring payment disputes to chargebacks.
Even if there are no more major deals of this kind on the market by the end of the year, analysts are optimistic about the growth of shares of payment companies. Among the fastest growing will be First Data, Paypal, Square and Worldpay.
TOP-7 transactions in payments.
Payments mergers and acquisitions are changing the scenario. If earlier a large company simply bought a small startup, now the negotiations are almost on an equal footing. Negotiating deals takes months, sometimes involving competitors and several rounds of raising the final price.
In this article, the PaySpace Magazine editors have collected the brightest deals in the field of money transfers, processing and payment security, which were announced or completed in 2019.
Money transfers and cross-border payments
Payment system revenues from cross-border transfers are growing. This is associated with an increase in international trade, tourism development and migration. In order to improve the service and reduce the cost of transferring funds, the largest PSs in the first half of the year entered into deals with leading money transfer services.Mastercard + Transfast
The companies announced the deal in March 2021 and announced the closure in July.
Transfast is an American company that serves international money transfers through its own network. Today it has access to 90% of the world's bank accounts and a similar percentage of the population. As well as 200 thousand cash withdrawal points in 120 countries.
For companies that make cross-border payments to their suppliers and partners, this deal will make transactions more predictable, faster and cheaper. After all, it is unprofitable for small and medium-sized businesses to wait several days for the payment to pass, or pay a high commission for its execution.
For Mastercard, the acquisition of Transfast is an increase in competitiveness in the field of transfers between accounts. As well as business diversification and brand maintenance outside the United States.
Visa + Earthport
After lengthy negotiations, Visa took control of Earthport in May 2021.
Earthport is a UK cross-border payment service through the largest independent network ACH (Automated Clearing House). Due to the fact that this company maintains partnerships with banks in 80+ countries, businesses can pay with their partners directly, bypassing intermediary banks.
In addition, Earthport is one of the first companies to use distributed technology to process payments. In 2014, the company struck a deal with Ripple, becoming a member of Ripple Net. This system allows you to quickly and securely send P2P payments anywhere in the world. Transactions within the network are not controlled by any central bank in the world and can be processed with minimal fees.
For Visa, this deal means expanding the service - transfers can be made not only from card to card, but also through the bank accounts of individuals, businesses and government agencies.
For users, the deal will bring solutions for different use cases, including salary transfers as well as international transfers between individuals and companies. This will make it easier to get paid for contractors from all over the world who work for various international companies.
Interestingly, Mastercard also wanted to buy Earthport. But Visa's offer turned out to be more interesting. After several rounds of offers from both payment systems, in February the company offered a better deal - about $ 319 million, which is 23% more than the initial offer of Visa and 12% more than Mastercard. The final purchase price was $ 321 million.
AMEX + acompay
The deal was announced in July 2021.
Acompay is a b2b payment provider that helps business clients make payments to their suppliers, manage business expenses and improve cash flow.
AMEX believes that this deal will provide customers with ready-made automated solutions for settlements with suppliers anywhere in the world.
Payment processing
Since the beginning of the year, there have been two major transactions in this area. Providers of technology solutions for financial institutions WorldPay and First Data acquired the largest payment acceptance and processing companies FIS and Fiserv.On the one hand, the emergence of two technology and payments giants will empower merchants and banks. On the other hand, market consolidation will increase competition. And so far it is impossible to determine exactly what problems the innovation race may lead to.
Fiserv + First Data
The deal was announced in January 2019, and they promise to close in the second half of the year for $ 22 billion.
Fiserv is an American technology solutions provider for the financial sector.
First Data is an American company that processes credit card payments.
After the merger, the companies will focus on creating a universal payment platform. The companies plan to provide a full range of payment and financial services, including invoice processing and digital banking solutions, card processing, e-commerce, and more.
Fiserv's customer service capabilities will expand significantly, from new customer registrations to the many ways to process physical or digital payments.
The merger should also lead to large financial gains. The deal is expected to generate additional profits of $ 500 million over five years. And the savings over the same period will be about $ 900 million.
FIS + Worldpay
In March 2021, the companies announced a deal, but the integration has not yet been completed. The announced acquisition cost is $ 35 billion.
FIS is a financial technology provider with a focus on payment and banking solutions that empower retailers, financial institutions, capital markets and businesses around the world.
The merger of the two companies will lead to the creation of a single organization for a full range of global payment solutions - from issuance to acquiring online and offline, from traditional to integrated payments.
Payment security
Retailers will lose $ 130 billion over the next five years to online fraud, according to Juniper Research. In addition, research firm Aite Group estimates that sometimes card issuers mistakenly reject transactions from trusted customers. This is also a problem that needs to be dealt with.Mastercard + Ethoca
The deal was announced in March 2021.
Ethoca is a global provider of e-commerce fraud prevention technology solutions. The principle of operation involves notifying the merchant of a suspicious payment in real time. The company's network unites more than 5 thousand merchants and 4 thousand financial institutions around the world.
For Mastercard, this integration means better digital security.
For merchants and card issuers, it benefits from lower operating costs by reducing fraud. Merchants will be able to reject suspicious payments right away, avoiding the chargeback process.
Visa + Verifi
The deal was announced in July 2021.
Verifi is a company that specializes in payment dispute resolution. Verifi's technology should help financial companies reduce the number of chargebacks by promptly resolving the dispute in real time and with the participation of all parties to the transaction.
Visa believes that integrating Verifi technology into its risk management services will enable merchants to engage in real-time dialogue with their customers and partners. This, in turn, will allow not to bring payment disputes to chargebacks.
Even if there are no more major deals of this kind on the market by the end of the year, analysts are optimistic about the growth of shares of payment companies. Among the fastest growing will be First Data, Paypal, Square and Worldpay.
