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Transcript of payments - innovalue.de...been one of the hot topics in payments. Apple has been able to set a...
An analysis of future developments of cash accep-
tance by merchants
It is common knowledge in the world of payments
that cash – consisting of bills and coins – is the single
legal tender. This means that by law cash has to be
accepted by merchants as a payment in return for
their goods and services. It also implies that all other
payment methods can be refused by merchants,
including also the most common alternatives such as
debit and credit cards. The key advantages of cash are
straightforward: it is publicly accessible, can be used
immediately, it is independent of technical logistics
and therefore always available and last but not least it
is anonymous.
Merchants like to get rid of cash
Keeping this in mind, it is not surprising that cash is
the most-used payment method at the point of sale
(POS) in Germany, accounting for 53 per cent of all
transactions in 20151. However, there are several
trends that result in declining cash payments. For sev-
eral reasons, not only debit and credit cards, but also
innovative mobile payment methods such as Apple
Pay and other solutions are gaining in relevance.
Based on INNOVALUE research, cash is the most
expensive payment method at the POS out of a total
cost perspective. Main cost drivers are manual pro-
cesses linked to handling cash that does not occur
with electronic and digital payments. This can be
interpreted as a main reason why we are seeing more
and more merchants pushing electronic POS pay-
ment methods such as (contactless) credit and debit
cards. It is to mention, that these payment methods
can additionally accelerate the checkout process as
they are much faster and convenient to process,
especially when it comes to small transactions
Will merchants start to refuse cash acceptance anytime soon?
florian seeh
Junior Associate
thomas Grohnert
Director
paymentsInsight. Opinion.
vol 14
COntent
1 Will merchants start to refuse
cash acceptance anytime soon?
Thomas Grohnert and Florian Seeh discuss whether mer-
chants might start to refuse to accept cash anytime soon.
3 apple pay on the Web –
a short revieW
Jan Lettow gives an update on the latest developments of
Apple Pay and the possible next steps.
4 public market valuations and
the market environment
Markus Massem elaborates the most recent market tur
bulences and its reaction on UKs decision to leave the EU.
6 m&a deal activity
Which transactions were the most interesting in the last
quarter? What are the current M&A drivers and what can
we expect in remaining year 2016? Robert Kayser, Aposto-
los Psaras and Philipp Steinbrück answer these questions.
9 venture capital activity
Stefan Thomalla and Eduardo Cenci review the latest pay-
ment start-up funding activities of Q2 2016 and elaborate
the strategic thinking.
11 m&a deal activity
Transaction overview
14 venture capital activity
Transaction overview
1 EHI inquiry 2015 at 522 companies with total revenue of EUR 245 billion, reflecting 57 per cent of total retail revenue
(without car trade, petrol stations and drug stores)
payments Insight. Opinion.
figure 1: Cash payment limitations in europe (source: european Consumer Center Germany)
that can be paid contactless without two-factor
authentication. The current limit for such transac-
tions is for example EUR 25 in Germany and is
expected to slowly rise after adoption. This has
already occurred in the UK where the limit was
raised from GBP 20 to GBP 30. These combined fac-
tors result in some merchants wanting to get rid of
cash.
Legislative changes support the process
Besides merchants pushing cashless payment
methods, we also see legislative initiatives that limit
cash acceptance in general. One example is cash
limits, whose potential introduction was discussed
very controversially and emotionally in Germany
but is already reality in many European countries. A
look at European countries
shows that legislation
regarding cash limits varies
strongly between different
nations and can be consid-
ered in three groups: Ger-
many, Austria, Iceland and
the two Baltic states Latvia
and Lithuania are countries
where cash transactions
are not limited at all. Several countries including the
Nordics, UK and the Netherlands have no limit in
the referring legislation; however the use in practice
is restricted. An example of such restrictions is the
fact that UK merchants, who want to accept cash
payments in excess of EUR 15,000, need to register
themselves with tax authorities as 'High Value Deal-
ers'. In Sweden, for another instance, accepted pay-
ment instruments may be limited on a contractual
basis; a merchant is not obliged to accept cash as
payment, if the limitation is stated clearly before
making the sale. The third group includes nearly all
of the southern European countries. Here legislative
cash limits range between EUR 1,000 and EUR
15,000 often differentiating between residents and
non-residents – usually allowing non-residents to
pay higher amounts in cash.
The most cash-adverse legislation probably can be
observed in Denmark: In May 2015, the former gov-
ernment proposed a law that would have allowed
most retailers such as
restaurants, clothing
stores and gas stations
to refuse payments in
cash completely, start-
ing January 1st, 2016.
However, the proposal
did not find a majority in
the parliament at the
time. Similar movements
can be observed in Sweden, where the majority of
bank branches no longer keep cash on hand or take
cash deposits – and many, especially in rural areas,
no longer have ATMs.
Also the European Commission’s Payment Services
Directive 2 (PSD2) can be interpreted as an initia-
tive favouring cashless societies and causing mer-
chants to prefer cashless payments as it ‘focuses on
electronic payments, which are more cost-efficient
than cash and which also stimulate consumption
and economic growth’, as stated in the Memo2 of
the European Commission published alongside
PSD2.
European trends, Germany's Holy Grail
To sum things up, there are several trends that imply
reduced cash acceptance by merchants in some
European counties, especially the Nordics, yet none
of them can be observed in Germany. Nevertheless,
we expect German merchants to push electronic
and digital payments because of lower costs and
faster checkout processes, leading to a slowly but
surely declining number of transactions made in
cash. However, if there ever was a train with cash-
less societies, Germany is going to be one of the last
to jump on.
Based on InnOVaLUe research, cash is the
most expensive payment method at the pOs out of a total cost perspective
2 European Commission, MEMO/15/5793
No limit
No limit in the referring legislation however restricted use in practice
Cash payment limited
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payments Insight. Opinion.
What’s new?
About two years ago, Apple introduced Apple Pay
to the broader public. Since then Apple Pay has
been one of the hot topics in payments. Apple has
been able to set a benchmark in terms of adoption
rate and usage of mobile payment methods.
Observers have mainly attributed this to the very
convenient consumer experience and the attrac-
tiveness of the brand for consumers as well as
merchants.
However, the use of Apple Pay has until now been
limited to the use cases of POS payment and in-
app purchases. On this year’s Worldwide Develop-
ers Conference in San Francisco, Craig Federighi,
SVP of software engineering, announced that
Apple Pay will now move into the web. Taking into
account certain open questions, this article will
highlight some of the benefits and disadvantages
of this step from different perspectives.
What is known?
Timing: The introduction is announced for this fall.
Regional scope: Presumably in all countries
where Apple Pay is already available (United
States, United Kingdom, Canada, Australia, China
and Singapore with Switzerland, France and Hong
Kong coming up).
Merchants: Multiple large online merchants
have already been announced by Apple to offer
web payment from the start (e.g. easyJet, Expedia
and Target).
Architecture: Apple Pay on the web will be inte-
grated into the existing Apple Pay architecture and
thus be based on the payment card infrastructure.
Hence the incumbent players within the payment
card value chain, i.e. issuer, acquirer and schemes
as well as a possible payment service provider
(PSP), will still participate in the processing of the
transaction.
Payment process: After selecting Apple Pay
within the checkout process, the transaction will be
prompted to the iPhone or Apple Watch, where the
user has to authorize it by Touch ID.
apple pay on the Web – a short revieW
Jan lettoW
Manager
From a consumer perspective, apple has once
again enriched the apple ecosystem
Restrictions: The use of Apple Pay on the web
will only be possible within the Apple ecosystem.
This implies having to use a Safari browser in com-
bination with an iPhone or an Apple Watch. Due to
the use of Apple’s Continuity (seamless connec-
tion of Apple devices) the devices must also be
connected to the same Wi-Fi.
Revenue model: It is not yet clear whether
the current revenue model of Apple Pay will be
replicated, i.e. issuers will need to share their inter-
change revenue with Apple.
Merchant integration: Also unclear is the mer-
chant integration of Apple Pay, especially whether
and which PSPs will be supporting an integration of
Apple Pay.
Consumer perspective
From a consumer perspec-
tive, Apple has once again
enriched the Apple eco-
system. This increases the
value proposition of the
ecosystem, making it more
attractive on the one hand
but on the other hand also increases the lock-in
effect for the consumer. To use Apple Pay on the
web, consumers will need to use a Mac or iPad
running Safari as well as an iPhone or Apple Watch.
From a user experience perspective, Apple again
sets a benchmark in light of upcoming regulation
regarding strong / two-factor authentication. Almost
en passant Apple presented a solution for integrat-
ing the second factor into the online payment pro-
cess. Most importantly, the solution seems to be
almost seamless from a consumer perspective, at
least on the basis of what is known today.
Merchant’s perspective
From a merchant’s perspective, Apple Pay will be
another online payment method in the world of
hundreds of online payment methods. The differ-
entiating factor will, however, be the access to an
affluent group of consumers as well as a conve-
nient and secure payment process.
Possible drawbacks for merchants are the restricted
consumer reach of Apple Pay on the web due to the
requirement of having to be completely inside of the
Apple ecosystem (Safari has a global browser mar-
ket share of ~12.5 %). In addition, the integration of
Apple Pay into the web shops as well as the pricing
and liability allocation are not yet clear.
Competitor’s perspective
The focus of Apple is to enrich its own ecosystem.
Hence, Apple Pay on the web is “just” another fea-
ture of Apple which differentiates Apple from its
direct competitors, e.g. Samsung and Google.
However, both are currently working on equivalent
features.
The implications for online payment providers
such as PayPal are much more severe. Up until
now, none of the relevant players have solved the
dilemma of strong customer authentication in
combination with seamless customer experience.
In addition, the costs for merchants will presum-
ably be in the range of accepting credit cards, i.e.
comparably low after the
interchange fee regulation.
This leads to the conclu-
sion that significant con-
sumer adoption and
merchant acceptance
might be possible for
Apple Pay to achieve and
thereby become a strong competitor for the
incumbent player.
From the perspective of banks, the move of Apple
Pay into the web can be as interesting as the move
into payment in general, as long as they stay in the
value chain as issuers and acquirers (i.e. Apple
does not move away from the payment card-based
infrastructure). In this case, they will benefit from
increasing transaction volumes as well as main-
taining the customer relationship. This benefit,
however, comes at the cost of a share of the inter-
change fees and at the risk of Apple moving
beyond payment and further into the realms of
banking / financial services.
Possible next steps
The step of Apple Pay into the web was not sur-
prising but rather conditional for further develop-
ments. Payment is no longer channel-bound but
covers all relevant channels, from the physical POS
to online. Once it has achieved this omni-channel
experience, Apple might further expand the Pay
feature with functions such as P2P-payment or
support of voice commerce. From there, steps
beyond payment might be expected, which could
cover topics such as banking, financing or savings.
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payments Insight. Opinion.
Following the sell-off experienced earlier in the year
during February 2016, the UK vote in favour of an
exit from the European Union put stock markets
onto yet another rollercoaster
ride. Following the vote on June
23rd, global stock markets took
an immediate dive and more
than $2 trillion of market value
was whipped out in the after-
math. Especially financial
stocks were among the hardest
hit, as some analysts described
the events and potential impli-
cations among the most
impactful for the financial services industry in
decades. In line with the initial stock market reac-
tion, the pound took a significant hit, falling strongly
against the dollar and reaching lows that were not
seen in 31 years.
public market valuations and the market environment
markus massem
Manager
Following the vote on June 23rd, global stock
markets took an immediate dive and more than $2 trillion of market value was whipped out
What followed the sharp declines in global stock
market as a consequence of the vote, however, was
a recovery that led to the main global indices recu-
perating most if not all of the losses. The FTSE 100
had recovered all of the losses by early July, while
the wider FTSE 250 is still trading below the low
points reached immediately after the Brexit reac-
tion. Overall, the current
volatility in the markets
is unlikely to disappear,
as great uncertainty
around the timing and
impact of the UK’s next
steps and potential
implications persists.
On more positive eco-
nomic news, the US
reported the addition of
287,000 new jobs in June but also market fears
such a slowdown in Chinese economic growth and
interest rate decisions by the Fed have not disap-
peared at all.
In light of the aforementioned market turbulences
that occurred at the end of June, about half of the
public companies in our payments universe (see end
of article for composition) have shown negative
returns over the past three-month period up to July
6th, with 11 out of 21 stocks posting share price
decreases. Since the beginning of the year, 11 out of
the 21 stocks are in negative territory. The overall pay-
ment index is down by about 1 % over the past three
months and down 2 % since the beginning of 2016.
The acceptance bucket realised a loss of 5 % over
the three-month period (-8 % year to date). Veri-
fone suffered the biggest single day drop in more
The payments universe (alphabetical order):
Acceptance: First Data Corp, Global Payments,
Ingenico, PayPoint, Vantiv, Verifone, WorldPay
Processing: Cielo, Euronet Worldwide, FIS, Fiserv,
Total System Services
PSP/Online payments: PayPal, Paysafe, Wirecard
Issuing/Prepaid solutions: FleetCor, Green Dot, WEX
Schemes: American Express, MasterCard, Visa
Sources: INNOVALUE research and company filings;
Google Finance for share price data
than three years, plunging by as much as 30 % after
the release of the 2nd quarter results, before recov-
ering some of the losses later in the trading session.
The plunge in the share price was driven by a num-
ber of reasons. Verifone missed the analysts' esti-
mates for the quarter and management also ended
up reducing the revenue estimates for the year to
$2.1 billion, down from the previous range of $2.15
billion to $2.17 billion. Earnings per share estimates
for the full year were also significantly reduced to
$1.85, down from a previous range of $2.21 to $2.24.
The company announced a plan for job cuts, which
could result in cost savings of about $30 million
next year. One of the drivers behind the more pes-
simistic outlook are US certification delays in chip-
enabled equipment, especially for small and
mid-sized companies. Also the persistent struggle
of Verifone to compete in Asia remains a challenge
that analysts continue to point out. Ingenico, Veri-
fone’s biggest competitor in Europe, slipped as
much as 7 % on the back of the Verifone results. ABI
Research estimates that Verifone and Ingenico
accounted for almost 80 % of the global payment
terminal market in 2014.
Another underperformer of 2016 so far is First
Data, which at $11 is down more than 30 % since
the beginning of the year and still significantly below
the IPO price of $16 per share. UK listed WorldPay
was the acceptance stock most heavily impacted by
the initial market decline in the context of the Brexit
vote, while PayPoint, another London listed com-
pany, was the strongest overall performer in the
acceptance bucket over the past three months,
gaining 13 %.
The comparables in the processing bucket increased
figure 1: Indexed stock price performance year to date till July 6th 2016
Acceptance Processing PSP/Online payments Issuing/Prepaid Schemes S&P 500
115
120
110
105
100
95
90
85
80Feb 16 Apr 16Jan 16 Mar 16 May 16 Jun 16 Jul 16
Last 3 months
4
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payments Insight. Opinion.
figure 3: payments universe trading multiples as of July 6th 2016
Acceptance Processing PSP/Online payments Issuing/Prepaid Schemes
Acceptance Processing PSP/Online payments Issuing/Prepaid Schemes
70%
60%
50%
40%
30%
20%
10%
0%
8% 7%
22%
15%
39%
30%
24%
46%
39%
29%25%
37%
63%
figure 2: payments universe operational metrics as of July 6th 2016
Revenue growth CY 14-15 EbItdA margin CY 14 EbItdA margin CY 15
2%
61%
by about 7 % over the last three months (+16 %
year to date). Cielo continued to perform strongly,
gaining about 13 %, while FIS was the strongest per-
forming stock within the category, up by more than
15 % over the same three-month period.
The comparables within the PSP and online pay-
ments category lost about 3 % over the last three
months (-4 % year to date). Wirecard has been
able to further recover losses that resulted from the
accusations of misleading accounting and fraud.
The company has gained about 12 % over the last
three months but is still down 16 % since the begin-
ning of the year. Paysafe took a hit in the context of
the negative market movements following the Brexit
vote, but was able to recover all of those losses by
June 29th.
The comparables of the issuing / prepaid solutions
bucket continued to gain over the past three
months, however, the 2 % increase was substan-
tially below the gains realized previously in the year.
WEX continued to recover losses since the low
point reached in early February, and the company is
up 3 % compared to the beginning of the year.
Green Dot, which is still the best performing stock
since the beginning of the year, gained another 4 %
over the past three months and is now up 43 %
since the start of 2016.
The schemes bucket continued to lose ground over
the past three months, shedding 5 % over the period
and 8 % since the beginning of the year. Master-
Card was the underperformer in this category, los-
ing 8 % over the three-month period, followed by
VISA which lost 5 %. Both companies reacted nega-
tively to the news that a federal appeals court had
thrown out a $7.25 billion antitrust settlement
reached by Visa and MasterCard with millions of
retailers, which had accused both companies of
improperly fixing credit and debit card fees.
0.0x
4.45.5
4.2 4.8
23.2
10.610.0x
20.0x
25.0x
6.74.9 5.3
18.117.916.2
9.8
4.7
12.0
14.8
12.7
16.8
18.9
EV/REV CY 14 EV/REV CY 15 EV/EbItdA CY 14 EV/EbItdA CY 15
15.0x
5.0x
10.1
5
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payments Insight. Opinion.
1%1%6%
30%
49%
13%
16x
14x
2x
12x
10x
8x
6x
4x
The second quarter of 2016 showed a new peak
in terms of the number of M&A transactions
within the payment industry. A total of 70 deals
have been reported with a total disclosed value
of USD 6.1 billion. Among those deals there is
one that stands out: the USD 1.2 billion acquisi-
tion of ISP Processing by private equity owned
ICBPI. Other transactions we look at in this issue
are the acquisitions of Cardtech and ICP Interna-
tional Cash Processing by Concardis and merger
of Payleven and SumUp.
M&A activity and deal characteristics
A total of 70 M&A transactions were announced
in the second quarter of 2016. This represents a
67 % increase over the 42 deals communicated in
the same period of 2015. The financial terms of 17
transactions, with a total volume of USD 6.1 bil-
lion, were disclosed, a 280 % increase compared
to the same period of 2015.
The total disclosed deal value of Q2 2016 was
heavily driven by the acquisition of Setefi Services,
(Setefi Processing) and Intesa Sanpaolo Card (ISP
Card), (together ISP Processing) by Mercury UK
for USD 1.2 billion (18.6 % of disclosed volume).
The underlying enterprise value multiple was 10.6x
EBITDA. Mercury UK is the holding company of
Istituto Centrale delle Banche Popolari Italiane
(ICBPI) and is owned by a consortium of funds
managed by private equity houses Advent Interna-
tional, Bain Capital and Clessidra. Setefi processed
995 million credit card transactions in 2015 worth
a total of USD 78.6 billion. The seller, Intesa San-
paolo, the leading Italian commercial banking
group will record a net capital gain of USD 1 billion
from the transaction and has entered into a 10-year
service contract for using the processing services
of ISP Processing. Via this divestment, Intesa San-
paolo will be able to focus on the core commercial
robert kayser
Senior Associate
apostolos psaras
Associate
philipp steinbrück
Associate
m&a activity
North America Europe Asia
Middle East, Africa (MEA) Australia South America
figure 3: targets by region (funding)
figure 1: m&a market development
disclosed value [USd billion]Number of transactions
acquiring and issuing activities and increase its
business focus on other areas of retail and corpo-
rate banking. For the buyer consortium and ICBPI,
the transaction will allow them to increase scale in
their processing platform and solidify their foot-
hold in the Italian payments market by adding the
largest commercial bank in the country as a
customer.
The median EBITDA multiple from 2015 to 2016
decreased from 13.1x to 10.6x. The median revenue
multiple from 2015 to 2016 decreased from 3.5x to
2.3x. Global Payments’ takeover of Australia’s
leading online payments gateway, eWay, for USD
50 million equates to a multiple of 4.2x revenue.
Ingenico’s acquisition of Nera Payment Solutions
for USD 63 million equates to a multiple of 1.8x rev-
enue or 30.0x EBITDA. Downer Grove’s acquisition
of Wayne Fueling Systems for USD 780 million cor-
responds to a multiple of 1.4x revenue or 9.8x
EBITDA. As seen in the previous quarters, deals
become on average larger and were based on
slightly lower multiples. Investors “adjust” expec-
tations about how disruptive target companies will
change the payment landscape, but there is still an
extensive range of valuations reflecting a broad
maturity.
Geographically, 49 % of the targets were based in
North America (Q1 2015: 54 %), followed by 30 %
in Europe (Q1 2015: 28 %) and 13 % in Asia/Pacific
(Q1 2015: 5 %). German companies were active
both as buyers and targets in Q2 2016 and were
involved in 11 transactions (7 as targets, 6 as buy-
ers). HPE, a Dutch investment firm specialising in
technology companies in Western Europe, acquired
a minority stake in AEVI, the Wincor Nixdorf sub-
sidiary focused on cashless payments, for up to
USD 33.5 million in a capital increase. Wirecard
continued its streak of acquisitions to support its
international growth strategy and bought Citi Pre-
paid Card Services for an undisclosed amount
facilitating the market entry in North America. In
Spain, UK-headquartered Barclays divested its Ibe-
rian Barclaycard credit card operations – acquired
by Spanish online bank bancopopular-e - in a trans-
action valued at USD 326.3 million.
Revenue Multiple EbItdA multiple
figure 2: median enterprise value multiples
9.5
14.5 14.713.1
10.6
3.72.8 3.5
2012 2013 2016Q2
2015
2.3
2015
2016Q2
dis
clos
ed v
alue
[U
Sd b
illio
n]
Num
ber of transactions4
6
8
0
10
20
30
40
60
70
50
02015Q2
2015Q3
2015Q4
2016Q1
2016Q2
42 4210
12
32
2
14.1 31.9
4.76.1
1.6
4649
70
62
2014
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payments Insight. Opinion.
Key drivers of and rationale for M&A activity
Generally Q2 has shown again more transactions
in more “traditional” payment segments such as
payments acceptance
devices and software,
processing and money
transfer. Key drivers for
inorganic growth were
increase in scale, a key
success factor for estab-
lished segments of the
payments industries and
improvements in internal
capabilities, either to
acquire technology plat-
forms or expand the
company’s reach to facili-
tate expansion.
Two established segments of the industry, process-
ing and acquiring, experienced a significant amount
of deal activity in Q2 2016. The need to increase
scale and improve product proposition to serve
merchants cross-border, across the entirety of the
payment value-chain and all sales channels (online,
mobile, POS) was a key driver of transactions.
Concardis, one of the leading merchant acquirers
in Germany, has acquired technical network pro-
cessing capabilities through the acquisition of ICP
International Cash
Processing and the
increase of its stake in
Cardtech Card & POS
Service to 70 %, con-
tinuing a strategy of
vertical integration.
The insourcing of
technical network pro-
cessing will allow Con-
cardis to have full
control of its payment
platform to meet
customer demands
and differentiate its
acquiring proposition
(develop cross-border capabilities), eliminate 3rd
party margins by capturing a larger part of the pay-
ments value-chain and ensure long term process-
ing capability by minimising dependency on
processing partners. These acquisitions are
expected to solidify Concardis’ competitive posi-
tioning, create synergies and generate additional
revenues. Within the context of ongoing consoli-
dation in the payments sector and increasing pres-
sure from international acquirers that are able to
serve large retailers as they expand internationally,
Concardis has become the largest individual share-
holder in orderbird, an iPad-based POS system
software provider for the hospitality vertical to
support its international expansion strategy.
Net 1 UEPS Technologies, a leading provider of
alternative payment systems, card processing and
issuing services, has been in the centre of deal
activity both as a buyer and a target. In April, Net 1
acquired a 60 % stake in Masterpayment, a pro-
vider of payment and acquiring services for all
major European debit and credit cards. As part of
the transaction Net 1 will collaborate with Liech-
tenstein-based bank, Bank Frick & Co., for the
deployment of its VCpay, a virtual prepaid Master-
Card, and money remittance services in Europe. A
few days before the end of Q2, Net 1 acquired the
remaining 40 % stake in Masterpayment to facili-
tate its expansion in key markets. During April,
International Finance Corporation (IFC), the private
investment arm of the World Bank Group, acquired
a 20 % stake in Net 1 for USD 107.7 million,
m&a deal activity in the second half of 2016 is expected to
be affected by political, regulatory and economic uncertainty following the outcome of the UK referendum and in the wake of the Us presidential election in november
7
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payments Insight. Opinion.
its largest investment ever in the financial technol-
ogy sector. The acquisition will boost the regional
expansion of Net 1 in African countries with limited
banking infrastructure.
International expansion into the Asian payments
market was the key driver behind the acquisitions
of Lyudia and Nera Payment Solutions by Ingenico.
Through the purchase of 70 % of Lyudia Ingenico
aims to position itself in the Japanese payments
market to capitalise on the EMV transition in Japan,
driven by the Olympic Games in 2020 and the
push towards cashless payments by the govern-
ment. This represents a three million terminal
opportunity according to Ingenico estimates. The
Nera Payment Solutions acquisition for USD 63
million is expected to enable the French payments
company to capture the payments market in Thai-
land, Singapore, Indonesia, the Philippines, Malay-
sia and Vietnam. Finally, Ingenico aims to enhance
its presence in omni-channel payments accep-
tance. Therefore, the company acquired French
start-up Think&Go NFC which enables the interac-
tion of digital displays with connected objects,
such as smartphones, via NFC.
In the payments accep-
tance devices and soft-
ware segment, the need
for scale in the mobile-
point-of-sale (mPOS)
market segment was the
rationale behind the
merger of two leading
European companies in
the space, UK-based
SumUp and Germany-
based Payleven. The
move seems logical, as
players such as Square
and iZettle firm their
market position and enhance their customer reach.
After SumUp retreated from Russia in 2013 and
from Ireland in 2014 after only 18 month of opera-
tions the combined entity will benefit from size.
The combined company will process more than
EUR 1 billion in transaction value across 15 markets
and will leverage the SumUp’s hardware and soft-
ware platform and Payleven’s merchant acquisition
and sales force capabilities. The new entity will be
owned (next to others) by Berlin-based Rocket
Internet and American Express. While the deal is
described as a merger, co-founder of SumUp
Daniel Klein will be the CEO of the new entity
which further will run under the name “SumUp”.
Another mPOS company that engaged in inorganic
growth to consolidate its position in the South-East
Asian market was Softpay mobile, a venture-
backed Singapore-based start-up, which acquired
one of its competitors Vietnam mPOS Technology.
It will be interesting to see if the deal activity
observed in this quarter is the start of ongoing con-
solidation within the mPOS market and how busi-
ness models of disruptive and incumbent players
evolve, especially as more established payment
companies such as WorldPay and Verifone launch
tablet-based integrated POS terminal products
with payment functionality targeting the SME
retailer segment.
The global increase in usage of electronic payment
methods and the proliferation of mobile payments
is prompting companies to engage in mergers and
acquisitions to improve their competencies in new
technologies and expand in new markets. For
instance, Reserve, a digital concierge service pro-
vider for restaurants and customers, acquired
dash, an app allowing
one-tap mobile pay-
ment for diners, to
enhance its payment
capabilities. Further-
more, Upserve a res-
taurant management
assistant technology
provider bought
Breadcrumb, a cloud-
based iPad POS soft-
ware provider, from
eCommerce player
Groupon to create a
full-service cloud-
based software ma-
nagement platform. Alternative payment methods
continue to exhibit momentum, especially in the
carrier billing sub-segment. European provider
DIMOCO acquired Onebip and the premium SMS
division of Hungarian mobile network operator
Telecom New Media to strengthen its position in
the Italian and Hungarian markets, respectively.
Financial details of the deals have not been dis-
closed. UK-based carrier biller Bango bought Bill-
toMobile for USD 3.5 million to fuel its expansion
in the US market by leveraging the relationships of
the acquired company with the four major US
mobile carriers.
M&A deal activity in the second half of 2016 is
expected to be affected by political, regulatory and
economic uncertainty following the outcome of
the UK referendum and in the wake of the US presi-
dential election in November. Global M&A vol-
umes have declined by 20 % compared to the
same period in 2015 according to the Financial
Times, while volumes involving UK targets are
down by 70 %, a trend potentially going to con-
tinue in light of the Brexit. This uncertainty seems
to have also affected payment player’s apatite to
go public. The first half of 2016 was rather quiet
regarding initial public offerings (IPO). Though
only few companies have disclosed details, the
Italian payment processor SIA has announced
plans to be listed on Borsa Italia before the end of
the year 2016. Bain and Advent stated to consider
the IPO of the Nordic payments firm Nets, a deal
that could raise around USD 3.5 billion. In addition,
Alibaba has communicated to consider a listing of
its unit Ant Financial, formerly known as Alipay.
Based on a report by Bloomberg, a potential take-
over of PayPal by MasterCard could be a major
upcoming transaction. Relations between the two
companies are supposed to have become increas-
ingly intensive in recent months. MasterCard
needs to keep fighting up as alternative checkout
platforms such as PayPal draw in customers and
new players enter the space. However, the idea is
not novel – MasterCard queues up with other
potential “dance partners” such as Amex or
Google. Therefore, it will be highly interesting to
observe the payment industry in the second half of
2016 and how players will react in their M&A as
well as IPO activities.
the need to increase scale and improve product
proposition to serve merchants cross-border, across the entirety of thepayment value-chain and all sales channels (online, mobile, pOs) was a key driver of transactions.
8
paGe 1
payments Insight. Opinion.
stefan thomalla
Associate
In the second quarter of 2016, 53 companies raised
USD 4,977 million, of which USD 4,938 million in
equity and USD 39 million in debt financing. This
represents a 10 % increase over the 48 deals
announced in the same period of 2015. However,
the funding volume was highly driven by the USD
4.5 billion funding of Ant Financial Services.
Geographically, 42 %
of the funding targets
(Q2 2015: 23 %) were
based in Europe, with a
disclosed funding
value of USD 218 mil-
lion, followed by 36 %
(Q2 2015: 48 %) in
North and Central
America, accounting
for USD 183 million. Further on, 13 % of the funding
activities were conducted in Asia (7 deals, USD
4,540 million), 4 % in MEA (2 deals, USD 24 mil-
lion), and the remainder in Oceania (2 deal, USD 12
million) and South America (1 deal, USD 0.3
million).
Investment Trends
Regarding the financing rounds, venture and seed
investments were predominant, accounting glob-
ally for more than 40 % of the total financing
rounds. A similar amount of early stage funding
has been registered in Q1 2016 (venture and seed
deals made 46 % of total rounds). In 2015, instead,
venture and seed investments accounted for just a
third of all deals. This implies that investors are
being progressively attracted by new and alterna-
tive investment opportunities while facing low
returns from capital markets. Moreover networks
of accelerators, such as the Global Accelerator
Network, and co-working spaces, very popular
among start-ups, in combination with an increas-
ing number of crowdfunding platforms, make new
investment opportunities more visible.
The highlight of this quarter is the USD 4.5 billion
funding received by Ant Financial Services Group.
This gives the company an estimated valuation at
around USD 60 billion. It has been one of the
world’s largest private fundraising round for a
FinTech.
Ant Financial Services Group, formerly known as
Alipay, is an affiliate company of the Chinese Group
Alibaba. Ant operates the Alipay payment platform
and also runs the Sesame Credit rating system (a
credit scoring system that uses data from Alibaba’s
services to compile its score). Alipay reported
about 450 million active users in 2015 and, accord-
ing to Credit Suisse’s estimates, processed 58 % of
China’s online payment transactions. Moreover,
Alipay is increasingly being used for offline ser-
vices, ranging from
paying for taxi rides to
buying groceries. The
investment was con-
ducted by a mix of
three private and state
Chinese financial insti-
tutions: China Devel-
opment Industrial
Bank, China Invest-
ment Corporation and Primavera Capital Group.
The funding indicates that Chinese investors have
appetite to invest in the country’s national champi-
ons in the Internet sector. Ant Financial plans to use
the funds for expansion in China’s rural-financial
services, investments in domestic IT infrastructure
and overseas acquisitions. In addition, Ant Finan-
cial is planning an initial public offering of its own to
create an even bigger behemoth. The timetable for
the IPO it is still not set, however the company is
paying close attention to the market trends and
policy changes.
In addition, another investment has affected the
Chinese market. Circle Internet Financial landed a
Series D USD 60 million funding round. The financ-
ing was led by existing investment partner IDG
Capital Partners, the prolific Beijing-based VC which
has been behind many prominent consumer inter-
net companies in China and is an influential player in
global Fintech investments. Along with IDG also
Breyer Capital, General Catalyst Partners, Baidu,
CICC ALPHA, China Everbright Limited, Wanxiang
and CreditEase participated in the funding.
Circle allows customers to send money in their
own currency to a recipient in another country,
who can then cash out in their own currency.
venture capital
edoardo cenci
Associate
figure 1: market development – Including both equity and debt funding deals
disclosed value [USd billion]Number of transactions
Europe North America Asia
Middle East, Africa (MEA) Australia South America
figure 2: Investment by region
2015
2016Q2
In the second quarter of 2016, 53 companies raised UsD 4,977
million, of which UsD 4,938 million in equity and UsD 39 million in debt financing
4%
13%
36%
42%
4%
dis
clos
ed v
alue
[U
Sd b
illio
n]
Num
ber of transactions
10
20
40
50
60
30
00
1,000
2,000
3,000
4,000
5,000
2015Q2
2015Q3
2015Q4
2016Q1
2016Q2
720463 345 382
4,977
535048
39
48
Other d
C b
A Venture
Seed
2015Q2
2015Q3
2015Q4
2016Q1
2%23%
4%8%13%
23%
10%
19%
26%
8%15%
5%
15%5%
26%33% 34%
21%
23%
13%
13%
9%
17%4%
20%17%
15%
21%
6% 12%
16%
10%6%6% 2%
figure 3: Financing rounds
2016Q2
9
paGe 1
payments Insight. Opinion.
To make the transaction happen, Circle converts
the original currency to bitcoin, moves that
amount along the network to a bitcoin address
affiliated with the recipient, and, if the recipient
prefers not to receive bitcoin, can convert them to
his own currency. Baidu’s investment in Circle
gives the company a stronger foothold in the pay-
ments space. Primarily the founding was aimed to
boost Circle China, an independent company cre-
ated six months ago with local investors in order
to capitalize on a population that is comfortable
with payments made over social media. Circle
China will start competing directly with Tencent
and Alipay once it obtains regulatory approval
and finds banking partners. However, the invest-
ment will also allow the launch of Circle Euro,
which will start from targeting Spanish consum-
ers as the first part of a broader Europe-wide roll-
out planned for the coming month.
A considerable change in its funding strategy has
been conducted by Klarna, the Swedish e-com-
merce payment solutions provider for merchants
and shoppers. The company approached for the
first time in its history debt markets issuing sub-
ordinated notes totalling approximately USD 32
million. The move comes as other technology
firms are also opting for debt rather than equity to
raise fresh funds. Klarna, which handles about
10 % of all online transactions in Europe and
launched last year in the United States, on online
payments giant PayPal's home turf, said the
10-year notes have a floating rate, and that notes
were allocated to a limited number of large
Nordic investors. The company opted for debt
financing to boost growth but also to diversify
its funding sources.
Based on an equity
financing round at the
end of last year, Klarna
had a USD 2.25 billion
valuation after Swe-
dish insurer Skandia
bought a 1 % stake.
Transferwise, the Lon-
don-based money transfer start-up, closed a USD
26 million series D. Through this funding, Transfer-
wise reached a valuation of approximately USD 1.1
billion, making it become part of the so-called ‘uni-
corn’ club (companies valuated more than USD 1
billion). The financing round was led by investment
management firm Baillie Gifford, with participation
from existing investors such as Andreessen
Horowitz. The funding will be used to improve the
loss-making start-up’s balance sheet as it contin-
ues to plough all revenue into future growth.
From a German perspective, Orderbird, an iPad
point of sale (POS) solution, has closed a remark-
able USD 22.8 million Series C equity funding.
Leading the round has
been Digital+ Part-
ners, along with stra-
tegic investor Metro
Group, who com-
bined, have invested
USD 18.8 million. The
investment from pub-
licly-listed Metro fits
with the overall mis-
sion of the group to digitise the restaurant and
catering industry. Previous backer, the European
payment provider Concardis, has also partici-
pated in this round, but via a secondary listing.
Orderbird plans to use the new capital for product
development and further expansion in Europe,
including a market entry in France later this year.
Regarding an outlook for the second half of 2016,
we assume from a regional perspective, that the
head-to-head race between Europe and North &
Central America will continue. Nevertheless, the
Asian market is very likely to increase its expo-
sure to new investors. This is because of multiple
factors:
1) The "noise" created by the Ant funding and the
striking expansion of Alipay
2) The uncertainty created among economic and
financial business after the UK referendum
3) The uncertainty of the presidential election in
the USA
According to editors from Amercian Inc. maga-
zine, two of the most popular venture capitalists,
Andreessen Horowitz and Google Ventures, will
neglect investments in early stage deals onwards.
Taking this into account combined with the actual
growing number of venture and seed investments
in the first half of the year, we suppose that the
competition among start-ups seeking for early
stage but attractive funding will rise on the one
hand. On the other hand, a couple of very large
deals in senior financing rounds are expected to
take place in the upcoming quarter(s).
Regarding the financing rounds, venture and seed investments were
predominant, accounting globally for more than 40 % of the total financing rounds
10
paGe 1
payments Insight. Opinion.
Date Announced
Target Company Country TC Industry Buyer(s) (Country) Country Transaction value (USDm)
1 01/04/16 Phone Pe India Provides mobile payments application for money transfer, bill and merchant payments
Flipkart India N/D
2 01/04/16 Verian USA Provides Purchase-to-Pay solutions Basware Finland 36
3 04/04/16 dash USA Provides app enabling one tap payments at selected restaurants
Reserve USA N/D
4 04/04/16 REV Ventures (Reevex) USA Provides solutions and kiosks for bill payment, self service banking and money handling
Glory Global Solutions United Kingdom
N/D
5 04/04/16 API Holographics United Kingdom
Provides optical security solutions to protect secure documents
OpSec Security Germany N/D
6 04/04/16 Masterpayment Germany Provides online payment processing services Net 1 UEPS Technologies South Africa N/D
7 05/04/16 Cardtek Turkey Provides payment processing, card and fraud management, and card personalisation solutions
MV Holding / Revo Capital Turkey / Netherlands
N/D
8 07/04/16 GiftCard Zen USA Operates as a digital coupon marketplace RetailMeNot USA 22
9 11/04/16 eWay Australia Provides Australia's leading payment gateway Global Payments USA 50
10 11/04/16 Think&Go NFC France Provides technology enabling any kind of digital display to interact with connected objects such as smartphones and transit passes
Ingenico France N/D
11 11/04/16 Net 1 UEPS Technologies South Africa Provides alternative payment systems that leverage its Universal Electronic Payment System ("UEPS") or utilize its proprietary mobile technologies
IFC USA 107.7
12 11/04/16 Seamless Distribution Sweden Software development company providing mobile money, VAS, prepaid top up, and managed operations technology solutions to mobile operators, banks, retailers, and distributors worldwide
Tikvah Management USA N/D
13 12/04/16 Vault Payments Group USA Provides electronic payment processing solutions Electronic Payments USA N/D
14 13/04/16 Kit CRM USA Provides advertising and marketing services Shopify USA N/D
15 14/04/16 RideScout USA Provides app aggregating public, private and social rideshare on its free iOS and Android apps, allowing on demand and real time search and comparison of transportation options
moovel Group Germany N/D
16 14/04/16 GlobeSherpa USA Provides mobile payments and ticketing for transit, parking, events and local destinations
moovel Group Germany N/D
17 18/04/16 PowaPOS United Kingdom
Provides bills payment services SuperCom Israel N/D
18 18/04/16 Zomaron Canada Provides credit and debit card processing solutions Zomaron Management Canada N/D
19 19/04/16 MyPoints,com USA Provides marketing and online advertising services Prodege USA N/D
20 19/04/16 SkyHill Software USA Provides payment software solutions i3 Verticals USA N/D
21 19/04/16 Esber Cash Register USA Provides school systems with a cost-effective method to host an online payment program
i3 Verticals USA N/D
22 19/04/16 Ebay Enterprises USA Helps retailers strengthen their online presence and e-commerce capabilities
Innotrac USA N/D
23 20/04/16 Vietnam MPOS Technology JSC Vietnam Provides mobile point of sale solution and payment facilitator SoftPay Mobile International Singapore N/D
24 22/04/16 Elavon do Brasil Brazil Provides card payment processing services Stone Pagamentos SA Brazil 83.4
25 26/04/16 Lyudia Japan Manufactures, designs, and distributes electronic transaction terminals, systems, and related products for electronic payment transactions
Ingenico France 5,622
26 27/04/16 payleven Germany Provides mobile point of sale solution and payment facilitator
SumUp United Kingdom
N/D
27 28/04/16 Barclaycard (consumer payments business in Spain and Portugal)
United Kingdom
Provides credit card services Bancopopular-e Spain 326.3
m&a deal activity Q2 2016
11
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payments Insight. Opinion.
Date Announced
Target Company Country TC Industry Buyer(s) (Country) Country Transaction value (USDm)
28 28/04/16 Chase (off-premise ATMs) USA Provides consumer and commercial banking services Cardtronics USA N/D
29 02/05/16 ICP International Cash Processing Germany Provides cashless payment services Concardis Germany N/D
30 02/05/16 Cardtech Card & POS Service Germany Operates as an electronic cash network provider Concardis Germany N/D
31 02/05/16 Payprotec Oregon USA Sells credit card transaction terminals Chyp USA N/D
32 03/05/16 Setefi Services S.p.A and Intesa Sanpaolo Card d.o.o. (ISP Processing)
Italy Provides electronic payment management services Advent, Bain Capital and Clessidra USA, USA and Italy
1,200
33 06/05/16 JDA (store point-of-sale, Win/DSS point-of-sale and CRM)
USA Provides integrated enterprise-wide software products Veras Retail USA N/D
34 06/05/16 Jumio USA Provides image recognition technology services Centana Growth Partners USA N/D
35 09/05/16 Breadcrumb POS USA Provides Software-as-a-Service applications Upserve USA N/D
36 10/05/16 BilltoMobile USA Provides mobile business services (carrier billing) Bango USA 3.5
37 10/05/16 National ATM Systems USA Sells and services ATMs Private individual USA N/D
38 10/05/16 Celery USA Provides an e-commerce application programming interface for developers
Indiegogo USA N/D
39 11/05/16 AEVI Germany Provides gateway for payment transactions HPE Growth Capital Netherlands 33.52
40 13/05/16 GoGORILLA Singapore Develops mobile messaging and payment transaction hubs Sandpiper Digital Payments Switzerland N/D
41 12/05/16 Onebip Italy Provides cashless payment systems and services DIMOCO Austria N/D
42 16/05/16 Infoscreen Cyprus Develops software for management solution Microgen United Kingdom
2,03
43 18/05/16 Xanthium Integrated Solutions South Africa Provides cards and personalisation services to banks, retailers and third party payment processors
Oberthur Technologies France N/D
44 19/05/16 Prabhu Money Transfer Malaysia Provides international remittance services Telenor Group Norway N/D
45 19/05/16 INSIDE Secure (secure IoT and semiconductor business)
France Provides integrated circuit solutions WISeKey International Holding Switzerland N/D
46 19/05/16 Nera Payment Solutions Singapore Engages in distribution and maintenance of point-of-sales payment terminals and electronic payment solutions to the banking, financial services and retail industries
Ingenico France 63
47 19/05/16 Coin (payment assets) USA Operates as a consumer electronics and financial technology company
Fitbit USA N/D
48 19/05/16 StoreFinancial USA Operates as a international payment processing company Emerchants Payment Solutions Australia 35
49 31/05/16 Prism Money USA Provides online bill payment services PayNearMe USA N/D
50 31/05/16 Sequoia Retail Systems USA Provides colleges with POS, retail bookstore and inventory management solutions
Blackboard USA N/D
51 01/06/16 Axia Payments USA Provides electronic payment processing services to government and non-profit organizations
i3 Verticals USA N/D
52 02/06/16 FIME France Provides testing services for cards and terminals Chequers Capital France N/D
53 02/06/16 Demandware USA Provides cloud-based digital commerce solutions for retailers and branded manufacturers
Salesforce USA 2.920
54 05/06/16 Groupon Indonesia Indonesia Owns and operates a website providing information on discounted products and services
KFit Malaysia N/D
55 06/06/2016 AssureTec Technologies USA Provides identity document authentication and data capture solutions
Acuant USA N/D
12
paGe 1
payments Insight. Opinion.
Date Announced
Target Company Country TC Industry Buyer(s) (Country) Country Transaction value (USDm)
56 06/06/16 Nettcash Zimbabwe Provides mobile money financial services Brainworks Capital Management Zimbabwe N/D
57 09/06/16 Canaan Creative China Designs and develops application-specific integrated circuit for Bitcoin mining
Shandong Luyitong China 466
58 09/06/16 Wayne Fueling Systems USA Provides fuel dispensing, payment, systems and aftermarket services for retail and commercial fuel stations
Downers Grove USA 780
59 13/06/16 TSYS Managed Services EMEA joint venture
United Kingdom
Specializes in customer-servicing operations TSYS USA N/D
60 15/06/16 XBT Provider Sweden Provides bitcoin exchange services Global Advisors Jersey N/D
61 17/06/16 Masterpayment Germany Provides online payment processing services Net1 South Africa N/D
62 20/06/16 eSupply USA Operates an e-procurement and spend management platform for the multi-family industry
RealPage USA 7.1
63 20/06/16 Pandora Venture Capital Corp,'s Product and Technology Businesses
USA Provides digital currency, proprietary Blockchain technologies, and digital currency exchange
WRIT Media Group USA N/D
64 20/06/16 Ascend Money Thailand Provides online payment services Ant Financial China N/D
65 23/06/16 Sharp BancSystems USA Provides software solutions for banking sector Nymbus USA N/D
66 28/06/16 Clevercoin Netherlands Provides bitcoin exchange services Kraken USA N/D
67 28/06/16 Telecom New Media (Premium SMS and Payments business)
Hungary Carrier billing division of Telecom New Media DIMOCO Austria N/D
68 28/06/16 InterCard Germany Provides multifunctional card systems for universities, institutions of higher education, and other educational institutions in Germany
Sandpiper Digital Payments Switzerland N/D
69 29/06/16 Citi Prepaid Card Services USA Supports launch and management of over 2,500 prepaid card programmes for brands and companies globally
Wirecard Germany N/D
70 30/06/16 Payvector United Kingdom
Provides online payment gateway, virtual terminal, e-invoicing, merchant account and white-label service provider
ai Corporation United Kingdom
N/D
13
paGe 1
payments Insight. Opinion.
Target (Country) Round Volume (USDm)
Investor(s) Funding (USDm)
Description
1 Bitt A 4.00 Overstock 5.50 Bitt is a Caribbean based digital asset exchange whose core focus is on providing access to cryptocurrencies in emerging markets
2 LevelUp Venture 5.00 N/D 45.00 LevelUp is an American mobile payment platform that lets users accept mobile payments and engage with customers through loyalty programs
3 Bitwala Seed 0.91 Digital Currency Group 0.91 Bitwala allows customers to pay in bitcoin for anything that requires a euro bank transfer
4 Vindi A 0.33 Bozano Investimentos 0.82 Vindi is a online payment platform (PCI certified) focused in subscription and recurring billing in Brazil
5 Sphere Seed 0.25 Start Global ventures 0.25 Sphere is a provider of both hardware and software for a POS integration system based on a so called built-in waiter app
6 Tiller Systems B 4.55 360 Capital Partners 4.66 Tiller Systems provides POS software solutions for restaurants and merchants
7 Tokken Debt 0.25 N/D N/D Tokken offers banking and payment processing services to cash-intensive businesses (currently focusing on the legal cannabis industry)
8 Cardtek Venture N/D MV Holding N/D Cardtek provides payment security hardware as well as processing services to end-to-end mobile payment solutions
9 IXARIS Venture 6.00 N/D 6.00 Ixaris Systems is a provider of company payment solutions and payment apps based on open-loop prepaid card schemes
10 Viewpost Debt 5.13 N/D 59.60 Viewpost offers a secure B2B network for electronic invoicing, payments and real-time cash management
11 Viva Republica A 23.00 Goodwater Capital 24.00 Viva Republica is a fintech startup to provide innovative P2P money transfer services through mobile applicaion called "Toss"
12 Plastiq Venture 2.85 N/D 21.20 Plastiq empowers clients to do credit and debit card payments toward bills including tuition, taxes, utilities and rent
13 Wolt B 12.40 EQT Ventures 26.05 Wolt is a provider of a mobile payments app for making and paying restaurant and cafeteria orders
14 ClassWallet Venture 1.50 Idea Bulb Ventures 4.04 ClassWallet offers payments with a reloadable virtual wallet to school teachers
15 Transactis E 30.00 Capital One, Fifth Third Bancorp, PNC Bank, Safeguard Scientifics, TD Bank, Wells fargo & Company
66.70 Provides white-label SaaS solution to enable merchants to accept online payments
16 Codipark Seed 0.50 N/D 0.79 CodiPark offers an app to do mobile payments after scanning a parking ticket
17 Forter C 32.00 Scale Venture Partners 50.00 Fully is a provider of a fraud prevention system, that is backed by a 100% chargeback guarantee for e-commerce enterprises
18 ANT Financial B 4,500.00 China Development Industrial Bank, China Investment Corporation, Primavera Capital Group
4,500.00 ANT Financial is the online payment services division of Alipay
19 PoshBerry Seed 0.25 Rhodivm Capital VC 0.25 PoshBerry is a provider of a Blockchain based loyalty wallet ecosystem
20 T2P (iBaht) Venture 1.10 500 Startups 1.10 Thailand based T2P offers an e-wallet app called DeepPocket
21 Zooz C 24.00 Target Global 40.50 Zooz provides a payments platform enabling enterprise merchants to connect with multiple payment and technology providers and route payment transactions
22 MobiKwik C 15.00 Global Payment Fund 86.85 MobiKwik is a provider of a mobile wallet app, that enables clients to do mobile payments and P2P money transfers
23 Passport B 8.00 MK Capital 15.54 Passport offers a solution to government, universities and private operators for the purpose of accepting payments for parking and transportation
24 EPG (Easy Payment Gateway)
A N/D Clearhaus 1.80 EPG (Easy Payment Gateway) provides online payment gateway for 200 different online payment methods and worldwide acquirers
25 Paylike N/D N/D Clearhaus N/D Paylike is a provider of payments acceptance with Visa and MasterCard for multiple devices and in 47 currencies
26 Digitzs Seed 0.50 N/D 2.55 Digitzs provides ticket payments for sporting events, donation payments for non profits and rent payments for property managers
27 Hishab Seed N/D IMJ Investment Partners Pte. Ltd N/D Hishab is a provider of a biometric ERP solution for the purpose of receiving and processing voice based data
venture capital activity Q2 2016
14
paGe 1
payments Insight. Opinion.
Target (Country) Round Volume (USDm)
Investor(s) Funding (USDm)
Description
28 Fluent Seed 1.65 ff Venture Capital 2.50 Fluent is a provider of Blockchain based technology, that enables bank and retail payments
29 AEVI B 22.80 HPE Growth Capital 22.80 AEVI offers cross-border payments, value-added services and B2B apps
30 Orderbird C 22.80 Digital + Partners 37.04 Orderbird AG is a provider of an iPad POS system, that facilitates reporting functions in the hospitality industry
31 Fattmerchant Venture 1.40 Central Florida, Florida Angel Nexus, Phil Rawlins, venVelo, Wet Paint Ventures, Wet Pant Capital LLC
2.25 Fattmerchant provides online payment credit card processing for both POS and mPOS
32 StoreHub Seed 0.85 500 Startups 0.85 StoreHub provides an iPad POSpayment solution in Malaysia with inventory management and reporting accessed via a mobile responsive backend
33 AccessPay Debt 1.45 Barclays N/D Accesspay is a payment software provider, that provides cloud based payment solutions and cash management products such as Direct Debit software, SEPA, Faster Payments, SWIFT and Multi-Bank Cash Management
34 TwoWayPay Angel N/D N/D N/D TwoWayPay offers a P2P payments platform without transferring financial information
35 Hey You B 2.00 Exto Partners Pty Ltd 7.00 Hey You is a provider of a mobile payment app, that enables clients to make payments at cafes, restaurants and bars
36 TableSafe Debt 0.51 N/D 18.96 TableSafe provides restaurants with at-the-table payment technology
37 Tally A 15.00 Shasta Ventures 15.00 Tally is a provider of a solution for credit cards payments and management
38 BitOasis Seed N/D Wamda Capital N/D BitOasis is provides digital payment products using bitcoin technology
39 Transferwise D 26.00 Baillie Gifford 116.37 TransferWise offers online money transfer and remittance services with real time foreign exchange rates
40 Dashlane C 22.50 TransUnion 52.50 Dashlane provides a password manager and secure digital wallet for the whole process of registering, logging in and checking out on websites
41 Pleo Seed 0.56 Speedinvest 0.56 Denmark based Pleo offers smart payment cards for employees enabling them to buy the things they need for work
42 Featurespace Venture 9.00 TTV Capital 16.37 UK based Featurespace is a provider of analytic technology for the purpose of fraud-prevention
43 Payveris Venture 7.50 Mosaik Partners 14.15 Payveris provides a digital payments platform and money transfer services including electronic bill payments, presentment and management, P2P transfers
44 Satago Venture 2.32 ESF Capital 3.37 Satago provides financial software to small businesses for the purpose of cashflow improvement
45 Muume Venture 2.27 Heliad Equity Partners 2.27 MUUME is a payment service provider with functionality in the area of loyalty, couponing, gamification
46 Tapp Commerce A 9.00 N/D 9.00 Tapp is the alternative payment solution allowing people to convert cash to digital credits that can be used in Tapp's marketplace and building P2P commerce exchange network
47 PromisePay A 10.00 Carsales 12.25 PromisePay is a payment service provider for companies which seek to outsource the entire payment process
48 Plaid B 44.00 Goldman Sachs 59.30 Plaid is an API to power developers of financial services applications and help them connect with user bank accounts
50 Loot Venture 2.17 Global Founders Capital 2.17 Loot provides a banking (via pre-paid Visa card) and money management app for students
51 Sezzle Seed 0.50 N/D 0.50 Sezzle is a provider of a payment platform to merchants, with an 1% cash back rewards when using Sezzle's solution
52 Circle D 60.00 IDG Capital Partners 136.00 Circle provides online and in-person payments with secure global digital money transfers
53 TransferGo A 3.40 Vostok Emerging Finance 6.11 TransferGo offers online money transfer to send money abroad for migrants and businesses
54 Klarna Debt 32.20 N/D 291.33 Klarna provides e-commerce payment solutions for merchants and shoppers
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payments Insight. Opinion.
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andreas habersetzer paRtneR phone +44 203 283 43 25 mobile +44 795 735 86 98 [email protected] London office
about innovalue
INNOVALUE is a leading strategic management advisory firm dedicated to the financial services industry. INNOVALUE’s clients are global or national market
leaders, regional specialists, innovators and entrepreneurs that have trusted INNOVALUE for over a decade as their preferred advisors. In the three practices –
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tance – including Growth, Efficiency and M&A – on engagements across Europe and beyond. Our clients uniquely benefit from the passion of our consultants in
the payments industry, through extensive international project experience, methodologies and the use of very current and pertinent data and benchmarks.
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