May 18, 2015
The first Quarter of 2015 saw a few major acquisitions in the payments sector out of which the D+H - Fundtech deal was an eye-catcher worth US$1.25 billion. Many payment companies focused on acquiring technology providers which shows a strong interest in providing technology based services to customers. Payment companies are focusing on digital technologies such as mobile payments, cloud based services, bio-metric authentication and other modern methods meet the expectations of the digital generation.
Visa Acquired TrialPay:
Visa partnered with TrialPay, a leading payments technology company that was founded in 2006 and now reaches over 500 million users across 20,000 merchants in 180 countries. With TrialPay, Visa will be able to target consumers based on their transaction histories and present them with specific promotions. These promotions will be similar to incentives; the customer will be provided with the option to purchase a desired product or service to receive an additional bonus product or service as a result.
PayPal Acquired Paydiant:
Paydiant is a 2010-born, Boston-bred mobile, cloud-based payments platform. Paydiant is the back end of the technology that offers sellers (retailers) their own personal mobile payment options under their own brands and also within their own applications. This allows merchants to be in control of and offer their own wallet and payment options. The deal was worth $280 million as reported. With Paydiant, PayPal expects to provide a stronger payments service for their existing on-line and new in-store customers.
D+H Acquired Fundtech:
D+H Corporation has entered into a definitive agreement worth US$1.25 billion to acquire Fundtech, a leading provider of global payments solutions to banks worldwide. Fundtech is a leading provider of financial technology to banks and corporations of all sizes in the Americas, EMEA, and APAC regions. Fundtech has approximately 1,200 clients, including global money center banks, mid-sized banks and credit unions, non-bank financial institutions, central banks, and corporations.
MasterCard Acquired Applied Predictive Technologies (APT):
Cloud-based analytics and Big Data company, Applied Predictive Technologies (APT), was acquired by MasterCard for $600 million. In February 2015 MasterCard announced $20 million in funds specifically allocated to boosting its cyber security technology. Plans to launch a biometric authentication and verification service are already in the works. This move can be seen as part of MasterCard’s plan to expand its technological reach. The recent acquisition will benefit both MasterCard and APT. MasterCard plans to utilize APT’s Test & Learn(™) platform and other services in combination with its own analytics expertise to provide customers with enhanced decision making capabilities.
Square Acquired Kili Technology:
Square acquired Kili Technology, a company that has developed silicon, electronics, and software to simplify and optimize payment processing. Square is looking at this acquisition to aid in delivering simple and affordable hardware that gives sellers a smarter and safer way to do business. Kili has been known for its low-cost solution-on-a-chip software for accepting contactless payments while acting as a mobile point-of-sale system.
Samsung Electronics Acquired LoopPay:
Samsung acquired LoopPay in February this year. LoopPay is an acclaimed mobile wallet solutions provider that turns existing magnetic stripe readers into secure, contactless receivers with the actual magic on the device side. LoopPay’s technology (MST in the devices) has the potential to work in approximately 90% or more of existing point-of-sale (POS) terminals, with no investment in new infrastructure required by merchants. Samsung Pay will use MST tech as a weapon in the ongoing wallet wars when it launches in the US later this year. As per Re/code, the deal was reported to be worth $250 million.
BBVA Acquired Spring Studio:
BBVA Acquired Spring Studio for Digital Banking Initiatives. Acquisitions are a part of the overall strategy of BBVA to lead the technology-driven transformation of the financial services industry. Last year BBVA acquired U.S. digital banking service pioneer Simple and Madiva Soluciones, a Spanish big data startup.
Northwestern Mutual Acquired LearnVest:
Northwestern Mutual acquired LearnVest, a leading player in online financial planning and client experience technology. This partnership brings together the best of what each company offers – Northwestern Mutual’s world-class financial professionals and best-in-class products, combined with LearnVest’s breakthrough technology and innovative financial planning platform. The New York based startup was acquired for over $250 million, as reported by Fortune.
Capital One Acquired Level Money:
Capital One has acquired the San Francisco based startup which developed the money management app Level Money. Since its inception in October 2013, the app has been downloaded over 700,000 times. Level Money has helped users manage over $12 billion in transactions. The app has helped people make smarter spending decisions, simplify their financial lives, get out of debt and reduce financial stress.
Global Payments Acquired Realex Payments:
Global Payments Inc., a leading worldwide provider of payment technology services, has announced the purchase of Realex Payments, one of Europe’s largest and fastest growing payment gateways. Realex provides a range of technology services for businesses selling online. This acquisition furthers Global Payments’ strategy to provide omni-channel solutions that combine gateway services, payment service provisioning, and merchant acquiring across Europe. Under the terms of the agreement, the transaction was valued at €115 million ($125 million).
Note: Acquisition values of 4 companies are not available.
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