August 3, 2015
FinTech innovation is happening at a breathtaking pace now. There is a great amount of interest in innovative startups. Large FinTech companies and banks are acquiring disruptive startups. We will see this trend going even more forward.
In the payments industry, highly used terms such as "unbanked" and "underbanked" have been the mantra for multiple startups. The FinTech payments sector has seen large rounds of funding and startups catering to niche sectors to get the above sect of people/business into the electronic payments field.
While the innovation space (new technologies enabling new marketplaces, players and customers) has been growing exponentially, there has always been the question of the scale each player could generate. This is where we see a steady consolidation happening in the industry. Below is a list of mergers that we have compiled:
PayPal acquires Xoom:
PayPal acquired Xoom, which is the poster child of modern international remittance using the digital channels. Expected Strategic Benefits of the Xoom acquisition as per Paypal
– Extends PayPal’s offering to its customers: Broadens PayPal’s consumer offering to its 68 million active US customers by cross-selling Xoom’s services.
– Accelerates ...