Last year, one-of-the-largest european mPoS Gateway provider iZettle made clear plans for listing at an estimated valuation of about $1.1 billion. But, that didn’t happen. Just a day before IPO, in the biggest deal of 2018, PayPal acquired iZettle for double that amount – $2.2 billion – seemingly to better compete with Square in European payments market
Paypal–iZettle was not a one-off megadeal in the payment gateway space. Major payment players like – Vantiv, Global Payments, First Data, Total System, Worldline, Ingenico Group – have made acquisitions in Payment Gateways space in the last 2 years to augment their capabilities. What makes Payment Gateways so attractive in the Payments ecosystem?
Payments Value Chain
In the Payments value-chain, Payment Gateway refers to a service provider which allows the facilitation of payments between customers shopping with credit or debit cards, eCommerce businesses, and financial institutions. Payment gateways can be used to accept payments online, instore, or remotely.
With 176 acquisitions and 59 exits in last 5 years, Payment Gateways has emerged as one of the hottest industries in Payments & Transfers sector
And, if you ask Kognetics, machine intelligence platform for M&A, Payment Gateways party is not going to be over anytime soon. Kognetics predicts high acquisition and exit likelihood for the Payment Gateways industry for 2019
But, how does Kognetics know so much about Payment Gateways, one of the key industries in Payments & Transfers sector?
Kognetics tracks 1,124 Payment Gateways companies which are granularly mapped across 16 sub-industry segments
Kognetics prediction for M&A and Exits in 2019
Kognetics predicts Online Payment Gateway, mPoS Gateway, PoS Gateway, InApp Payment Gateway, Recurring Billing Payment Gateway segments will see most exits in 2019 as major payment players use cross-border M&A to expand into new geographies.
Other emerging segments like Invoice Payment Gateway, Cryptocurrency Payment Gateway, and Payment Gateway API are increasingly becoming strategic, and may see interest from key strategic acquirers in 2019 as they expand their offerings.
Attractive companies in segments that are most likely to see M&As
Kognetics also helps identify attractive companies that have capabilities in the segments that are most likely to see M&As. Kognetics tracks a number of company signals from a variety of structured and unstructured sources to identify growth companies.
Kognetics is an Intelligence Augmentation (IA) platform for enterprise decision making. Our platform and solutions are designed to dramatically transform M&A and investments decision making. If you would like us to showcase the platform, or if you would like to know more details about Kognetics, please do reach out to us here