Sep 23, 2021

Financial Technology & Payments – September 2021

Heightened Revenue Visibility Drives FinTech & Payments Market Activity

Capstone Partners September 2021 Financial Technology & Payments Industry Update is now available, reporting that clear winners throughout COVID-19 prioritized Software-as-a-Service (SaaS) and subscription-based business models which afforded them greater business flexibility, speed of implementation, and revenue retention compared to traditional services. Financial technology (FinTech) and payment providers harnessed SaaS benefits such as end-to-end cost savings, data security, and scalability to mitigate risk and reduce operating expenditures.

The FinTech & Payments merger and acquisition (M&A) market saw an incredibly strong start in 2021 and has continued at a feverish pace to-date. Heightened industry consolidation was supported by mature strategic buyers seeking market dominance and private equity firms deploying majority stake investments to subscription-based solutions, SaaS businesses, and business-to-business (B2B) services. As the M&A market became heavily saturated with well-capitalized buyers, companies with high revenue visibility and strong profit margins garnered premium valuations upon their exit.

Also included in this report:

  • Capstone’s first edition of FinTech Front Runners, a series of FinTech and payment startups that have exhibited exceptional leadership and revenue growth
  • How the rising adoption of cryptocurrency has impacted multi-asset trading platforms
  • Why employers have utilized income payment software for shift-based and freelance workers
  • Why insurers have increasingly relied on policy management systems to oversee the policy lifecycle process
  • The drivers behind surging initial public offering (IPO) activity
  • The benefits of merging with a special purpose acquisition company (SPAC) as a public listing vehicle

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