Capstone Partners: Demand for Embedded FinTech Platforms Accelerates as Small Business Banking Evolves

Sale of Allied Payment Network to Autobooks underscores consolidation trend among infrastructure providers serving banks and credit unions. 

Boston, MA – Capstone Partners, a leading middle market investment banking firm, highlights accelerating demand for embedded financial technology platforms as financial institutions move to modernize small business banking—a trend highlighted by the recent Capstone-advised sale of Allied Payment Network (APN) to Autobooks.

Recent M&A activity points to increased consolidation—and opportunityؙ—across infrastructure providers, particularly those offering integrated accounts receivable, payable, and cash flow tools.

Capstone’s Financial Technology & Payments Investment Banking Team, who advised APN on the acquisition by Autobooks, highlights that strategic buyers have been actively seeking providers with high-recurring revenue models, deep financial institution distribution, and solutions that address pain points in small business money movement. As outlined in the team’s latest Financial Technology M&A Update, consolidation among embedded platforms remains a dominant trend as acquirers look to unify fragmented workflows to improve product stickiness, increase monetization, and deepen SMB engagement. The Payments space in particular has gained elevated M&A attention from strategic and financial buyers in 2025—global Payments M&A volume has jumped 27.7% year-over-year to comprise the majority (30%) of total sector deals year to date.

These trends have helped drive premium outcomes for middle-market founders and owners at companies like APN in 2024 and 2025, especially in verticals like Payments, where small business needs remain underserved.

“We’re seeing strong appetite for platforms that unify fragmented money movement functions under one roof,” said Managing Director David Francione, Head of Capstone’s Financial Technology & Payments Investment Banking Team. “Allied stood out as one of the last independent bill pay providers focused exclusively on the bank and credit union channel—an increasingly scarce asset class as consolidation accelerates. This transaction highlights how strategic acquirers are pursuing high-fit infrastructure to round out their offering and meet the evolving needs of small business clients.”

Founded in 2010, APN offers a broad suite of digital payment tools—including PicturePay, P2P, A2A transfers, Vault, and BizPay—used by over 500 financial institutions nationwide. Its scalable infrastructure and long-term relationships with financial institutions positioned it as a compelling acquisition target at a time when embeddedness and channel access are driving valuation. With the addition of APN, Autobooks gains a robust bill pay backbone, enabling financial institutions to deliver a more complete solution to small businesses directly within digital banking.

Capstone anticipates further M&A opportunity for middle-market leaders in the space as financial institutions seek turnkey platforms that can drive engagement and retention among SMB customers.

Read more about the transaction here.

ABOUT ALLIED PAYMENT NETWORK (APN)

Headquartered in Fort Wayne, IN, APN is one of the last independent bill pay providers focused exclusively on banks and credit unions. The company’s solutions—including PicturePay, P2P, A2A, Vault, and BizPay—have helped over 500 financial institutions modernize payments and strengthen their digital offerings.

ABOUT AUTOBOOKS

Autobooks is a Detroit-based financial technology company providing receivables, digital payments, and accounting tools embedded directly into online and mobile banking. Trusted by thousands of financial institutions nationwide, Autobooks empowers banks and credit unions to grow and retain small business relationships by offering embedded business tools that simplify cash flow management. With the addition of APN, Autobooks now supports over 500 financial institutions and processes more than $5 billion in payments annually.

ABOUT CAPSTONE PARTNERS

For over 20 years, the firm has been a trusted advisor to leading middle market companies, offering a fully integrated range of investment banking and financial advisory services uniquely tailored to help owners, investors, and creditors through each stage of the company’s lifecycle. Capstone’s services include M&A advisory, debt and equity placement, corporate restructuring, special situations, valuation and fairness opinions, and financial advisory services. Headquartered in Boston, the firm has 175+ professionals across the U.S. With 12 dedicated industry groups, Capstone delivers sector-specific expertise through large, cross-functional teams. Capstone is a subsidiary of Huntington Bancshares Incorporated (NASDAQ: HBAN). For more information, visit www.capstonepartners.com.

FOR MORE INFORMATION CONTACT:

David Francione
Head of Financial Technology & Payments Investment Banking
617-458-9254
dfrancione@capstonepartners.com

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