Alessandro Mighetto

Global fintech M&A deal volume showed steady growth during Q3 ‘24, with private equity-led M&A activity significantly contributing to the deal performance. Strategic acquisitions also saw an increase in deal numbers, with notable players such as MasterCard and Visa actively acquiring fintech companies during Q3 ‘24.

Payments software startup, kevin, once seen as Lithuania's next unicorn, has declared bankruptcy, leading the National Central Bank of Lithuania to revoke its PI license after months of financial struggles and employee layoffs. kevin’s insolvency underscores the critical importance of developing robust economic models that can effectively support scalability and long-term success in the fintech landscape.

Global fintech M&A deal volume rose by 20% from Q1 2024, growing at 2x compared to last year's 10% increase for the same period. In Q2 2024, the fintech M&A landscape was characterized by strategic consolidations and a strong focus on integrating advanced technologies such as AI. This sector remains dynamic and attractive for strategic buyers and PE investors.

A cautious but optimistic sentiment is prevailing in the Fintech and Payment sector. Despite a subdued start in 1Q 2024, investors anticipate an uptick in M&A deal flow throughout 2024.

Fintech Deal of the Quarter: Capital One Acquires Discover

Capital One + Discover will become the largest credit card issuer in the US market, accounting for 19% of the US credit card market.
The acquisition will generate expense synergies of ~$1.5B in operating expenses and ~$1.2B in network… Zobrazit více

A cautious but optimistic sentiment is prevailing in the Fintech and Payment sector. Despite a subdued start in 1Q 2024, investors anticipate an uptick in M&A deal flow throughout 2024.

Fintech Deal of the Quarter: Capital One Acquires Discover

Capital One + Discover will become the largest credit card issuer in the US market, accounting for 19% of the US credit card market.
The acquisition will generate expense synergies of ~$1.5B in operating expenses and ~$1.2B in network expenses by 2027.
The acquisition will drive cost of funding efficiency, cross-selling opportunity, and create an appealing opportunity for innovation by owning a national payment network with a strong international presence. Zobrazit méně

The European Central Bank proposes a central role for itself in the Digital Euro as the operator of the central ledger, but envisions PSPs doing much of the heavy lifting and has not yet specified the economics in enough detail to motivate stakeholders. ECB will be responsible for the back-end infrastructure and collaborating with banks and payment service providers (PSPs) to develop the market's most affordable and convenient digital payment solution. In our view, the proposed design leaves… Zobrazit více

The European Central Bank proposes a central role for itself in the Digital Euro as the operator of the central ledger, but envisions PSPs doing much of the heavy lifting and has not yet specified the economics in enough detail to motivate stakeholders. ECB will be responsible for the back-end infrastructure and collaborating with banks and payment service providers (PSPs) to develop the market's most affordable and convenient digital payment solution. In our view, the proposed design leaves key questions unanswered regarding future functionality and design. Zobrazit méně

FedNow, officially live in July of this year, is the latest A2A (bank account to bank account) clearing network built on modern, real-time infrastructure. FedNow is viewed by many as a potential catalyst for disrupting card scheme dominance in U.S. payments. However, as we explain in this article, clearing networks are just technology enablers, not disruptive products in and of themselves. Real disruption must come from products built and distributed to consumers, and here is where the… Zobrazit více

FedNow, officially live in July of this year, is the latest A2A (bank account to bank account) clearing network built on modern, real-time infrastructure. FedNow is viewed by many as a potential catalyst for disrupting card scheme dominance in U.S. payments. However, as we explain in this article, clearing networks are just technology enablers, not disruptive products in and of themselves. Real disruption must come from products built and distributed to consumers, and here is where the uncertainty remains for the disruptive potential of U.S. A2A payments. Zobrazit méně

The recent public equity experiences of Adyen and dLocal highlight the increased importance of investor relations and communications in fintech.
The share prices of both companies have fallen sharply from their peaks (-75% for Adyen and -70% for dLocal as of today). Part of this fall is consistent with the entire fintech industry, but Adyen and dLocal share price declines are more extreme as the result of what we see as lackluster investor communications.

Central Bank Digital Currencies (CBDCs) have emerged as a pivotal topic at the intersection of finance, technology, and policy. As traditional forms of currency give way to digital alternatives, central banks worldwide are exploring the potential of CBDCs to revolutionize how we conduct financial transactions, manage monetary policy, and safeguard economic stability. The article attempts to demystify CBDCs via a status update on various central bank initiatives, as well as insights into CBDC… Zobrazit více

Central Bank Digital Currencies (CBDCs) have emerged as a pivotal topic at the intersection of finance, technology, and policy. As traditional forms of currency give way to digital alternatives, central banks worldwide are exploring the potential of CBDCs to revolutionize how we conduct financial transactions, manage monetary policy, and safeguard economic stability. The article attempts to demystify CBDCs via a status update on various central bank initiatives, as well as insights into CBDC characteristics, use cases, and potential impact on stakeholders in the payment ecosystem. Zobrazit méně

Banking products present a natural cross-selling opportunity for merchant payment providers. In recent years, major PSPs such as Adyen, Stripe, Checkout.com, Nuvei, and PayPal have expanded their product sets by introducing banking solutions such as cards, credit, and business accounts.

PayPal's share price recently reached a 5+ year low based on disappointing net income growth, driven by post-COVID volume deceleration and gross margin pressure. We dissect their Q1 2023 and FY 2022 performance based on the most recently available public data

The struggles of Railsr, a former fintech unicorn that raised $187 million and was one of Europe’s most visible Banking as a Service (“BaaS”) providers, have been well documented. Once valued at $1 billion in 2021, Railsr was sold in a prepackaged bankruptcy to a consortium of investors and management for $500,000 plus up to another cca. $500,000 in trailing collected receivables. In this article we summarize key highlights from the bankruptcy filing documents and identify lessons learned.