Embed Size (px)
Citation preview
October 2019
ComCap’s Guide to Commerce & Payments at Money 20/20
Photo by visitlasvegas.com
DISCLAIMER: ComCap LLC make no representation or warranty, express or implied, in relation to the fairness, accuracy, correctness, completeness, or reliability of
the information, opinions, or conclusions contained herein. ComCap LLC accepts no liability for any use of these materials. The materials are not intended to be
relied upon as advice outside of a paid, approved use and they should not be considered a guarantee of any specific result. Each recipient should consult his or her
own accounting, tax, financial, and other professional advisors when considering the scenarios and information provided.
2
▪ ComCap is a premier boutique investment bank focused on the intersection of commerce and capital, with key focus
on B2B SaaS, B2C ecommerce, payments, mobile commerce, marketplaces and B2B services for retail technologies
(IT and marketing services, in-store, fulfillment, logistics, call center, analytics, personalization, location intelligence)
▪ Headquartered in San Francisco with European coverage from London & Moscow, and LATAM coverage from Sao
Paulo. Our firm works with mid-cap public companies on buyside initiatives and public and private growth companies
on financing and strategic M&A
▪ In addition to being the only boutique focused on disruptive commerce models, we differentiate by:
‒ Bringing bulge bracket techniques to emerging models;
‒ A strong and uncommon buyside/strategy practice;
‒ Deep understanding of industry drivers and synergy analyses;
‒ Deep relationships across the sector; and
‒ Worldwide coverage with closed transactions in the United States, Japan, China, the ASEAN region, Western
and Eastern Europe and Latin America
▪ Your global ComCap team:
Aron Bohlig
Managing Partner
M: +1 415-235-8270
Steve Terry
Managing Director
M: +1 415-971-3794
Fermin Caro
Director
M: +1 650-743-7825
Carlos Gonzalez
Director
M: +7 915-413-1911
Peter Creech
Senior Associate
M: +1 508-685-1620
Jack Kim
Analyst
M: +1 305-469-7168
Daniel Radomysler
Associate
M: +55 11 99658-7977
An introduction to ComCap
$740.0
$561.0
$93.0 $87.0 $77.0 $69.0 $55.0 $44.0 $22.0 $16.0
China US UK Japan Germany South Korea France Canada Australia Brazil
Retail Ecommerce Sales Worldwide – 2019 ($US bn)1
3
ComCap – Active in 14 countries, including 9 of the top 10
global ecommerce markets
1Source: Shopify Plus Ecommerce Playbook
▪ M2020 – regarded as one of the most important conferences in FinTech – aims to create a simpler, fairer, faster and more inclusive financial system
for individuals, businesses, and society as a whole, by exploring the Payments, Commerce and Financial Technology ecosystem in order to unite,
create, and explore the disruptive ways in which consumers and businesses manage, spend, invest, protect, share and borrow money
▪ This year, ComCap - the only digital retail and fintech-focused investment bank - has represented fintech clients from North America, South
America, Asia, and Europe in ongoing efforts to advance the impact that payments and fintech are having on commerce
▪ As such we have continuous dialogue with the most prominent investors and strategic players in the fintech space around the globe – If you will be
at M2020 this year please reach out to connect on our insights and to discuss your strategic initiatives for 2020
• Payments & Commerce
Innovation
• Emerging & Converging
Tech
• Entrepreneurship & Investing
• Blockchain & Crypto
• The Human Factor
• Alternative Lending & Credit
• Regulation & Regtech
• Regional Superstars:
Spotlight on Asia
• Regional Superstars:
Spotlight on LATAM
• Digital Trust
• Cybersecurity & Fraud
4
Sector Breakdown
19%
9%
25%11%
14%
22%
Payments Companies
Blockchain, Lending, Personal Finance & InsurTech
Service Providers to Financial Industry
Banks & Credit Unions
Investment, Analyst, Media, Governement, Consulting & Other Services
Retailers, Telecoms, Mobile & All Other
Money 20/20 – Overview & statistics
Attendee Breakdown
11,000+ Attendees
2,300+ C-Suite Execs
3,400+ Companies
400+ Startups
100 Countries
Event Overview and ComCap participation
ComCap’s thematic areas of
interest
1
2
Source: Money 20/20 USA
3
4
5
6
7
8
M2020 Themes
5
Money 20/20: ComCap’s focus sectors and relationships
Source: news sources
▪ The digital payments landscape is rapidly shifting, and understanding consumer behaviour in this brave new world is key
▪ Digital payments are expected to reach a record $726 billion by 2020, according to a study by Capgemini and BNP Paribas
▪ Tech innovations such as connected homes, contactless bank cards, wearable devices and augmented reality will drive cashless
transactions in the future
▪ Try before you buy and instalment after purchase based model like Klarna, Zip, Afterpay etc. are creating new opportunities for retailers
▪ Marketplace software and social commerce players are deploying new payment models
Payments & Platforms NextGen Commerce & Retail
6Source: news sources
Alternative Lending & Credit AI & Deep Learning
▪ AI is helping FinTech companies to assess the creditworthiness of customers and their applications, manage risk, and automate time
consuming manual tasks
▪ More than 36% of the financial institutions worldwide have leveraged AI-focused technologies, and around 70% plan to implement it
▪ Blockchain drew a significant amount of attention from investors 2018, although investments typically focused on more experienced
companies and consortia looking to obtain additional rounds of funding rather than on new market entrants
▪ Small businesses are the economic backbone of America, accounting for more than half of all private sector workers. However small
businesses face credit gaps, which can be resolved or overcome through fintech growth
Money 20/20: ComCap’s focus sectors and relationships
To
tal
Ca
pit
al
Ra
ise
d
$50m
$10m
$25m
$100m
$0m
Online
Processing
Fraud /
ComplianceAlternative
Lending
OthersAnalytics
Platform
$200m+
Source: CapitalIQ, Crunchbase, News articles
Loyalty
Platforms
POS Software
/ Hardware
Acquired Listed
Select emerging companies attending Money 20/20
NA
Theme Description Select companies
Artificial Intelligence /
Analytics
Focus on disruptors in the artificial intelligence space focused on ecommerce, logistics, retail,
predictive, payment, risk and marketing
B2C and Vertical
Brands (DNVBs)
Digitally native D2C brands harnessing modern technology and business models to reach the
end consumer, covering clothing, accessories, personal care, home and kitchen, furniture, and
other consumer-focused products
Ecommerce SaaS Emerging and disruptive SaaS businesses in the ecommerce sector
FintechRetail and commerce-related disruptors in the fintech universe. Current focus areas include
payments, risk analytics, false declines and retail point-of-sale, especially mobile (mPOS)
Logistics
Emerging platforms and providers innovating and optimizing the many facets of the supply
chain ecosystem
Marketing SuitesEmerging platforms in digital marketing, who focus on optimization in digital marketing and
content delivery
MobileFocused on mobile solution providers optimizing the mobile experience from desktop-to-mobile
website conversions, targeted mobile marketing, to simplifying the mobile checkout experience
Personalization Emerging players in the ecommerce personalization space
Retail In-store
technology
Platforms and solutions that enable retailers improve customer experience, productivity, and
operational inefficiencies
Agencies and System
Integrators
Agencies and systems integrators implementing retail focused technology spanning the above
sectors, including large SIs covering multiple platforms, as well as smaller SIs covering just one
or a handful of platforms
8
ComCap’s current thematic focus areas
Payments majors are expanding scope to in-store and mobile app capabilities
“Super apps” are strengthening their market leadership by adding payment capabilities
Cross-border payments represent a $20tn+ opportunity
Fast-growing fintech trends are causing incumbents to expand their share of payments volumes
Online merchants are focusing on digital wallets and payment processing services
Alternative lending is disrupting legacy credit-based banking methods
2019 Fall key themes in fintech and retail
Ecommerce leaders are innovating in-store, led by expedited checkout technology
4
3
7
1
2
6
5
9
$1.5 $1.8$2.3
$2.8$3.5
$4.1$4.9
7.4%8.6%
10.2%
11.9%
13.9%15.5%
17.5%
2015A 2016A 2017A 2018A 2019E 2020E 2021E
Global E-commerce Sales Global E-commerce Penetration
$1.6$2.2
$3.1
$4.3
$6.1
$9.0
$11.1
$14.0
2015A 2016A 2017A 2018E 2019E 2020E 2021E 2022E
10Source: Statista Estimates; Global Market Insights; Braintree, 2018 Global Payments Report
▪ Ecommerce grew 21.7% in 2018 and currently commands 11.9% of total retail sales,
outpacing global retail growth of 5.8% by a significant margin
▪ Rising consumer and retailer expectations for seamless and insight-driving payment
processing is giving rise to a breed of next-generation payment technologies
▪ Thus, next-generation fintech companies are growing faster than ecommerce as a whole,
commanding 38.7% growth in 2018 while projecting a 36.4% CAGR from 2015 to 2022
Innovative financial technologies are evolving alongside ecommerce at a rapid pace
Annual transaction value of the next-generation
payment technology market ($tn)
Global ecommerce sales ($tn) and
ecommerce penetration (%)
Next-gen payments and Ecommerce represent two of the fastest
growing markets with scale…1
Payments and Commerce players seek to expand share of retail
payments volumes
Emerging marketplaces
and consumer services
providers
POS hardware/software/financing
Horizontal platforms
Selected retailersPayments providers Open / closed loop card networks
Source: Capital IQ, ComCap Analysis | Market data as of 7/11/2019, Statista, Research and Markets
Note: CY’20 YoY growth and EBITDA margins are rounded to the nearest whole percentage point
$4.8tn / 15%CY 20 global digital payments
market size and growth
$4.1tn / 17%CY 20 global ecommerce
market size and growth
CY ’20/’19
YoY growth
23% 41% 11% 67% 2% 7%
20% 37%
40% 18%
35% -1%
CY ’20 EBITDA
margin 11
1
12
Evolving payment forms are having direct implications on how
merchants think about their future payment needs…
Source: ATKearney
▪ Digital channels
emerging for
traditional “offline”
experience
▪ 60% of restaurant
goers have 1+
restaurant app
▪ Nearly 2/3 of
restaurant goers are
enrolled in 1+ loyalty
program
▪ 60% of Domino Pizza
orders originated
through Domino app
Digitized merchant
channels
▪ Small and large
retailers increasingly
seek integrated
experiences as
consumers oscillate
between channels
(e.g., search online,
try online, buy online,
pick-up offline, return
by package)
Integrated physical
and digital channels
▪ More than half of US
ecommerce sales
take place through
marketplaces
▪ Marketplaces offer
SMBs and brands an
attractive way to
access consumers
with no fixed costs
and significant value-
add
▪ Marketplaces
facilitate payments,
each often having
differing payment
terms
Participation in
marketplaces and
platforms
▪ Cross-border
commerce growing
rapidly: 23% CAGR
from 2017 to 2020F
(+$400B)
▪ Payment methods
differ significantly by
country (e.g., in the
Netherlands, the
majority of
consumers pay with
iDEAL, a local
payment method)
Participation in
global commerce
▪ Leading players are
winning by offering
frictionless and
seamless
experiences, going
beyond just selling
products
▪ This required
integrated payment
capability and
complex
escrow/disbursement
capabilities
Frictionless
merchant
experiences
Implications for merchants
2
Company Location Key Statistics Payment strategy
2018:
TPV: $16.5 bn
GMV: $41.1 bn
▪ Shopify Payments allows merchants to sell in multiple currencies and receive
payments in their local currency
▪ Shopify Payments was introduced in the US and Canada in 2013, and has
been expanding into additional geographies in recent years
2018:
383m worldwide users
(135% growth YoY)
▪ Apple Pay, Apple’s digital wallet, is currently used in 27 markets around the
world and will be available in more than 40 countries by the end of 2019. It is
on track to process more than 10 billion transactions in 2019
▪ Recently launched a credit card dubbed Apple Card. Key features: simple
application, no fees, lower interest rate and compelling rewards program
2018:
GMV: Over $94.5bn
(8.97% avg take rate)
▪ In 2019, eBay announced plans for the next two years to make its own
payment system, tracking the customer relationship from product discovery to
checkout in order to simplify transactions
2018:
GMV: $12.5bn
Total TPV: $12.16 bn
▪ Mercado Pago is a powerful disruptive provider of inclusive financial
technology solutions for merchants on Mercado Libre
▪ A growing number of ecommerce sites and brick-and-mortar retailers are
adopt MercadoPago as a preferred payment method
2018
GMV: $243.9 bn
▪ In 2019, the company partnered with Thai retail conglomerate The Central
Group to launch a digital wallet platform
▪ JD Finance spun off from JD.com and is now seeking a domestic IPO along
with additional financial licenses
2019:
GMV: RMB 5,727 bn
▪ Ant Financial operates Alipay, the most widely used third-party online
payment service provider in China
▪ Alipay allows customers to conduct transactions directly from their mobile
devices, and is available in 70 markets worldwide
13
…as global online retailers react by focusing on digital wallets and
payment processing services
Source: Various news articles and Annual Reports
2
Company Location Key Statistics Payment strategy
GMV: $6.7bn
▪ GOJEK’s mobile wallet, Go-Pay, is planning to “strengthen and deepen” its
position in the Indonesian electronic payment market
▪ In July 2019, GOJEK partnered with LinkAja to expand its digital wallet
offerings
▪ GoJEK is expanding its presence in Southeast Asia through acquiring
Coins.ph, a Philippines-based mobile wallet company, for $72m
Grab Financial: 60,000
merchants+
▪ In June 2019, Grab partnered with GovTech for MyInfo integration to create a
safer and more secure e-wallet with new user verification features
▪ In March 2019, GrabPay launched new online checkout capabilities,
extending beyond traditional in-store POS options
Active users 1.12 bn
out of which 800
million use the
payment system
Daily transaction
volume: Over 1bn
▪ WeChat Pay plans to expand its presence in Europe, and has already
partnered with a number of popular vendors for Chinese visitors
▪ WeChat Pay has plans to expand into additional markets and to ease the
payment process for its customers
2018:
Gross bookings: $50bn
across all platforms
Monthly active users:
93 million
▪ In 2018, Uber Cash was launched to extend its power in payments, and to
build out its growing commerce and payments ecosystem.
▪ Uber Cash is a closed-loop payment network that lets consumers easily add
funds to its stored value account
▪ Uber Cash also allows users to earn more rewards
▪ Uber /BBVA to provide Debit cards for un(der) banked drivers in Mexico
14
“Super apps” are strengthening their market leadership by adding
payment capabilities
Source: Various news articles and Annual Reports
3
15
Payments majors are moving from online to in-store
• Countertop POS:
o Smart beacon and Bluetooth-enabled
devices with large touch-screen
displays for ease of use, with built-in
audio for media advertising
• Multimedia POS:
o Impact, insights and two-way
interactions with a single screen for the
customer and cashier
o Displays line items as scanned, larger
screen for easy signature capture
o Fully customizable with rich media
advertising, screen branding, etc.
• Portable POS:
o Handheld pocket-sized mobile POS
o Charging base system for battery top-
ups throughout the day.
• API integration:
o Provides APIs that web developers can
use to integrate payment processing
into their websites and mobile
applications
• Issuing:
o In July 2018, Stripe began a platform
for companies to issue Mastercard and
Visa credit cards
• POS Terminal:
o In September 2018 Stripe announced
this new POS solution, as an invite-only
beta. The service offers physical credit
card readers designed to work with
Stripe
o In June 2019, Stripe made Terminal
available to all U.S. users, ending the
product’s beta testing phase
o In March 2018 Index was acquired by
Stripe to bring personalization and
measurement of online commerce to
the offline world and boost Strip’s in-
store POS capabilities
• TAM: $785m
• Online transactional services:
o PayPal enables users to transact
through multiple channels without
sharing critical identifying information
• Cards:
o PayPal has a longstanding partnership
with Mastercard to provide alternative
prepaid credit cards to its customers
• POS:
o PayPal partners with various POS
providers like Vend, Lavu, and
Touchpoint to provide in-store solutions
• In-store:
o It acquired iZettle in May 2018 for
$2.2bn, to improve and amplify its off-
line (in-store) payments solutions
Source: Company Websites and Capital IQ
(€M) Capex TPV CapEx/TPV % bps
2014 3.4 25,000.0 1.4
2015 5.2 50,000.0 1.0
2016 10.5 90,000.0 1.2
2017 9.7 122,492.0 0.8
2018 11.0 179,670.0 0.6
($M) Capex TPV CapEx/TPV % bps
2014 492.0 235,640.0 20.9
2015 722.0 281,760.0 25.6
2016 669.0 355,380.0 18.8
2017 967.0 456,180.0 21.2
2018 823.0 578,420.0 14.2
4
Affirm announces new consumer split payment application
Source: Business Wire, Globe Newswire
▪ Within a few short years of launch, over 50% of Shopify’s
revenue stems from payments
▪ Many fintech players such as Affirm look to combine
ecommerce and payments solutions in order to unlock
commercial synergies
▪ Affirm’s new shopping app offers massive benefits for both
shoppers and merchants
▪ Merchants using Affirm will get more direct exposure to mobile
shoppers
▪ The new app will directly compete with Amazon, aiming to
disrupt its Prime customer base
Benefits for shoppers
✓ Shop from ‘virtually any retailer’ using a single-use virtual card
✓ Immediate incentives via 0% and low-APR offers even at top
brands
✓ Pay at any brick-and-mortar store that accepts Apple Pay or
Google Pay
✓ Easy financing available without affecting credit score
✓ Easily split payments with friends or family
The leading POS financier is expanding into mobile commerce in order to capture greater volume
Benefits for merchants
✓ Discover new customers by leveraging Affirm’s 3 million strong
consumer network
✓ Boost volumes without heavy discounting
✓ Majority of Affirm’s users are Millennials and Gen Z, who
possess high spending power
✓ Retailers on the Affirm app have seen ~3x increase in
conversion relative to other apps
✓ Those with Apple Pay or Google Pay enabled have also seen
up to 14% of transactions driven in-store
90%Plan to spend up to $2,500 on their 2019 holiday
shopping
64% Want to pay over time to help with their budgets
67% Want to avoid using credit cards this season
4
63% Plan to finish holiday shopping by Cyber Monday
3x Retail partner lift relative to other apps
Affirm’s app rollout is favorable for shoppers, merchants, and market share expansion
17
“Take” technology “Cloud shelves” technology “Just Walk Out Technology”
Display• Leverages big data to choose
most relevant products according
to customer persona
• Sensor-triggered displays that play product
demos every time someone picks up an
item
• Smart “magic” try on mirrors and smart
purchase machines
• No Smart Display
• Smart movement ceiling cameras
and shelf sensors to auto identify
customers, track their movements
in-store, and detect the objects
picked up
Entrance
• Facial recognition technology and
image recognition technology
identifying customers and
recording payments
• Scan QR code on Taobao app at entrance
to acquire entrance code
• Biometric self-perception with unique
Taobao ID
• Customers need an Amazon
account, smartphone and the
Amazon Go app and can scan a
QR code at the entrance to open
aisle gates
Shopping• Smart shelf technology and RFID
technology proprietary by JD.com
• Established Hema, a new convenience-
store concept, where customers can use a
mobile app to seamlessly shop both online
and offline
• Every item that customers pick off
the shelves is added to a “virtual”
shopping cart on the Amazon Go
app
Checkout• In-house visual recognition
technology for automatic
checkouts
• Payments are done in a booth, where the
customer shows his face and pays cashless
and contact-free. Customers can also pay
via the Alipay wallet
• Customers can pick up any item on
the shelves, walk out of the store,
and are billed later via the app
Ecommerce leaders are innovating in-store, led by expedited
checkout technology5
18
Retailers are evolving beyond the card: mobile checkout is growing
at a noticeable rate
Source: Statista. https://www.statista.com/statistics/244475/proximity-mobile-payment-transaction-value-in-the-united-states/
Vyze, 2017, “Growth trends in retail consumer financing for 2017. http://vyze.com/wp-content/uploads/2016/11/ConsumerFinancingTrendsin2017Report.pdf
Proximity mobile payment transaction value in the
United States from 2015 to 2021 (in billions USD)
▪ As an alternative to traditional card transactions, mobile payments are becoming increasingly popular, growing at a
58.4% growth rate in 2018 and sporting a 64% 6-year CAGR
▪ Barcode / QR code scanning is the most common in-store mobile payment method, followed by waving or tapping the
mobile phone to pay at check out
▪ Industry experts project mobile proximity payments to be amongst the most successful future mobile payment
methods
Alternative options such as proximity mobile payments are becoming more prevalent as
consumers look to expedite the checkout process
$78.1
$113.8
$153.3
$190.0
2018 2019 2020 2021
“Concierge is the tool enabling us
to get our strategic customer
engagement initiatives across the
finish line.”
- Patrick Walsh, Talbots EVP of
Sales
”The mobile transaction numbers
have far exceeded our
expectations.”
- Larry Mentzer, Chief Revenue
Officer at Century 21
“Great product with solid focus on UI
for a retail associate.”
- Jeff Rohr, CIO Helzberg Diamonds
Mad Mobile: enabling retail store associates with
clienteling, assisted selling, and mPOS capabilities
5
19Source: News Articles
▪ Data driven underwriting is transforming the industry, giving rise to
alternative lending
▪ Merchant and consumer lending are becoming standardized for non-
traditional lending players
▪ Fintechs are leveraging non-lending (payments) data to accelerate
acquisition and underwriting with lower costs
▪ Fintech-enabled underwriting leverages consumer spending patterns and
traditional income assessment methods
▪ PayPal and Square, two of the largest companies in this sector, have used
customer data to lend >$5 billion since 2015 and 2018, respectively
Alternative lending is disrupting legacy credit-based banking
methods
1%
4%
30%
2010 2012 2017
▪ Fewer and more flexible terms than those
offered by traditional banks
▪ Faster loan processing relative to banks
▪ Digital lending mechanisms lead to better
security
▪ Easily scalable
▪ Better risk management through big data
analytics
▪ Lower cost models due to automation
Key lending disruptors
Fintech-based lending market share (US)
Alternative lending advantages
6
Trends
20
Cross-border payments represent a $20tn+ opportunity
Source:onyxcentersource.com, statista, accenture.com, mckinsey.com
$2.0 $2.1 $2.4 $2.6 $2.8 $3.2 $3.6
$19.8 $20.4 $21.3 $22.2 $23.2 $25.4
$26.6
2016 2017 2018 2019 2020 2021 2022
Retail Corporate
Cross-border payment volume worldwide ($tn)Cross-border payments remain concentrated in B2B
Cross-border trade TPV by geography
$31$38 $37 $39
$38$37 $38 $37
$32 $25 $26 $24
2007 2012 2017 2022
Northernhemispheretrade
Cross-hemispheretrade
Southernhemispheretrade
▪ In 2018, the cross-border payment market was $21.8tn and is
expected to increase to $30.2tn by 2022 at a CAGR of 5.6% from
2016 to 2022
▪ 80% of cross-border payments are B2B related, with banks
dominating 95% of the B2B market
▪ B2B cross-border payments are rapidly growing, mainly in southern
regions
▪ In 2018, B2B cross-border transactions revenue accounted for $125bn
▪ In 2022, global banks’ cross-border payment revenue is expected to
decrease by $25bn because of convenient and cheap services offered
by non-bank players
Global bank cross-border revenue
70
100
75
2016 Revenue 2022 Revenue 2022 Revenue afterdisruption
2016-2022
Organic
growth
Fintech
disruption
+30 -25
($tn)($bn)
7
21
… as multi-dimensional forces are driving cross-border transactions
Increasing
smartphone
adoption
▪ Mobile apps accounted for more than 30% of global digital commerce volume in 2017, forecasted
to reach 70% by 2022 (tripling to $4.6tn)
▪ Apple is adding P2P payment options to Apple Pay as a feature for iMessage, allowing for
domestic and cross-border remittances
▪ Digital wallets are estimated to have added ~$40bn to global payments revenues in 2017
▪ Blockchain technology has the potential to securely transmit remittance data along with payments
▪ MoneyGram has partnered with Ripple to use digital currency as part of day-to-day operations
Increasing range
of payments
options
The rise of
ecommerce
▪ Retail cross-border ecommerce sales totaled $300bn in 2015 and are poised to exceed $900bn
by 2020, representing a 25% annual growth rate
▪ 15 - 20% of total ecommerce transaction value stems from international purchases
SMEs
representing
more cross-
border trade
▪ SMEs account for ~30% of global imports and regularly transact internationally
▪ With the right payments experience (small-value one-click payments or platform solutions), SMEs
are expected to represent a growing share of cross-border trade
▪ The number of international overnight travelers increased 6% YoY to 1.4bn in 2018
▪ With the growth in the global travel market, cross-border payments including guest payment
facilitation between hotels and travel agencies is on the rise
Global travel
growth
Enhanced localization, better logistics, and additional payment options
are making it easier for consumers to transact globally
Source: Global payments 2018: A dynamic industry continues to break new ground – McKinsey & Company Report 2018
7
CONFIDENTIAL
Selected attendee profiles
23
Selected attendee profiles
Alternative Lending Total funds raised ($mn) Headquarters Total employees Description
Aspiration $65 Marina Del Ray CA ~210
Aspiration is a financial technology firm that offers what it calls socially conscious online banking
and investing services, a strategy aimed at digital-savvy millennials. It has 1.5 million customers in
its hybrid checking-savings accounts, with 200,000 more signing up each month
BlueVine Capital Inc. $590 Redwood City CA 290+
BlueVine provides access to online financing to SMBs through a suite of products including Line of
Credit, Term Loan, and Invoice Factoring. Its advanced online platform offers a fast and convenient
solution for a business’ working capital needs
Branch International $265 San Francisco CA ~160Branch International, a fintech startup that assesses creditworthiness using smartphone data. It
has over 3 million customers and over 15 million loan issued
Bread $200 New York NY ~310
Bread offers transformative point-of-sale financing technologies to offer retailers the tools to sell
more and to engage more deeply with consumers, continually building value over the lifetime of
their relationship
Climb Credit, Inc. $66 New York NY ~50Climb Credit provides student lending services. The Company offers student loans, payment
processing, comparisons, and related financial services
Dividend Finance $365 San Francisco CA 130+Dividend is a national provider of renewable energy and energy-efficient financing solutions to
property owners
EZBOB $101 London UK 80EZBOB offers lending-as-a-service solution to banks and financial institutions. It supports multiple
products,including small business loans, consumer loans, and asset finance
24
Selected attendee profiles
Alternative Lending Total funds raised ($mn) Headquarters Total employees Description
LendKey Technologies $48 New York NY 150
LendKey offers white-labeled lending solutions that transform financial institutions into profitable
digital lending businesses. The company manages the lending process, which includes: demand
generation, online decisioning, loan origination, customer service and balance sheet management
LendUp $362 San Francisco CA ~110LendUp, a financial technology company for the emerging middle class. It will focus on personal
loans, gamified education, and savings opportunities as an independent company
MoneyLion $228 New York NY ~260
MoneyLion uses superior analytics and machine learning-based risk technology to gain a 360-
degree view of its users’ personal finances, enabling better underwriting and the development of
tailored financial product offers.
Savvy NA Toronto Canada 11
Savvyy's end-to-end, digital lending platform helps lenders underwrite and service loans intelligently
and efficiently. The platform uses data, data-intelligence, and user experience design to reduce
loan processing costs, improve the customer journey and increase employee & customer
satisfaction.
Tribal Banking NA Bratislava Slovakia NA
Also know as TribeFS, it is a financial services company which rebundles financial services for a
specifc set of people which they term as tribe. The Company is a spin-off from the Vacuumlabs
group.
Zibby $286 New York NY 58
Zibby offers customers a lease purchase transaction with no long term obligation and options for
ownership. It partners with both online and brick and mortar retailers nationwide provide purchasing
power to the underserved sub-prime consumer market
25
Selected attendee profiles
Digital wallet / processing Total funds raised ($mn) Headquarters Total employees Description
B4B Payments NA London UK 19
B4B Payments is a business payments innovator offering smart and flexible corporate payments
and card solutions. It delivers prepaid cards and outbound payment services to manage corporate
expenditure for both employees and businesses globally.
Boku $87 London UK 190
Boku provides mobile billing and payment solutions for mobile network operators and merchants.
The company’s solutions enable consumers to make online payments using their mobile devices.
There are 13.5 billion monthly active users and $3.6bn annual payment volume
CoinPayments $30 George TownCayman Islands. 10
Coinpayments is a digital currency payment solution that allows merchants to accept Bitcoin and
over 1300 different cryptocurrencies in their store through easy to use plugins, APIs and POS
interfaces. It also offers additional services including digital wallet integration, crypto cold storage,
multi-signature support and a wide variety of plugins and merchant tools to help boost business.
Dave $185 Los Angeles CA 70+
Dave is a US-only app that predicts upcoming expenses and alerts users if their balance is at risk.
It offers a credit-building app that lets users borrow cash advances up to $100 without interest and
auto-repay out of their next paycheck
F1 Payments NA Austin Texas 25
F1 Payments is a fintech company that delivers dynamic and diverse payments technology
ecosystem with frictionless connections and focuses on increasing business velocity for all
constituents in the payments ecosystem.
Impesa NA San José Costa Rica 40
IMPESA is a finTech company dedicated to developing electronic payment solutions and tools that
provide competitive advantages to the financial sector. Its software Monibyte allows corporate bank
business customers to manage and control the way their credit cards are used, mitgates fraud ,
increases revenue and reduces costs.
Maxpay NA Birkirkara Malta 89
Maxpay is an international payment processing company which helps online companies to easily
receive payments, set up subscriptions and increase revenues. Alongwith with payment solutions
it also offers full range of consulting services. It provides full-service solutions for accepting card
payments in more than 130 currencies with 32+ partner banks.
MeaWallet AS $8 Sandvika Norway 33
MeaWallet AS, a digital payment solutions provider offers payments and tokenization solutions. Its
mobile services platform offers digital card issuance; enables secure mobile contactless and
remote payments for card issuers; and supports open and closed loop payment schemes. It also
provides mobile wallet solutions for card issuers; and co-branded payment cards that allow users
to issue their own digital cards without purchasing expensive licenses.
Modulr Finance Limited $45 London UK 151
Modulr is a Payments as a Service API platform built for digital businesses that need a faster,
easier and more reliable way to move money. Once integrated, businesses can instantly set up as
many accounts as they reqiured. Getting paid, reconciling and making payments is fully automated
and can be managed in real-time, 24/7 through their existing software applications.
Cayman
26
Selected attendee profiles
Digital wallet / processing Total funds raised ($mn) Headquarters Total employees Description
NYMBUS $39 Miami Beach FL ~70
NYMBUS, the core banking modernization company, enables financial institutions to digitally
transform their businesses. Its offerings include SmartLaunch, SmartMarketing, SmartCore,
SmartPayments and SmartServices
Ondot Systems $51 Santa Clara CA ~200
Ondot Systems focuses on mobile payment services, serving over 4,000 financial institutions
across four continents. The company’s real-time platform gives financial institutions a competitive
edge by increasing engagement and empowering their customers to personalize, manage and
control payments
PayNearMe $109 Sunnyvale CA 60+
PayNearMe operates an electronic cash transaction network that enables banks, businesses, and
government agencies to accept cash payments from consumers at local stores in the United
States. Its platform facilitates cash, debit, credit and ACH payments
PayRange Inc. $15 Portland OR 26
Payrange provides in-app mobile payment service that combines payment, rewards, and
convenience to pay machines including laundry, vending, amusement and merchants for everyday
purchases. The company offers BluKey, a device when installed in the vending machine gets
connected to the mobile application and allows the user to swipe on the smartphone to make
payment.
Payveris $39 Cromwell CT ~40Payveris operates a cloud-based digital payment and money transfer platform. It provides bill
payment solutions; and account-to-account external transfer solutions
Petal $381 New York NY 108
Petal offers a Visa rewards card to people with little to no credit history. It uses a more holistic and
comprehensive underwriting model to determine the creditworthiness of credit card applicants
compared to traditional banks that rely predominantly on an applicant’s FICO score
PXP Financial Limited NAStanstead
AbbottsUK 250
PXP Financial Limited provides single unified payments platform to accept payments online, on
mobile and at the point of sale. Serves over 1000+ merchanges and processes ~€16B volume
annually.
Rapyd $150 London UK 135+
Rapyd's fintech-as-a-service platform enables any payment type for in-country or cross-border
commerce. It operates a largest local payments network that connects to over 2B+ consumers
transacting around the world
Shtar $66 Brooklyn NY 2Automated and Digital Positive Pay for SMBs, bringing ease, convenience, and more secure than
thought possible.
27
Selected attendee profiles
Fraud / compliance Total funds raised ($mn) Headquarters Total employees Description
ComplyAdvantage $38 London UK 200+ComplyAdvantage develops anti-money laundering (AML) data and surveillance platform to
manage AML risk of individuals and organizations
DataVisor $55 Mountain View CA ~130
DataVisor combines applied machine learning capabilities with powerful investigative workflows
and an intelligence network of more that 4B user accounts to provide real-time fraud signals,
insights, and protection to preserve vital trust and security
Feedzai $77 San Mateo CA 490+Feedzai offers advanced risk management platform powered by big data and machine learning. It
is the market leader in fighting fraud with AI
Forter $100 New York NY 220
Forter is a fraud prevention company that eliminate fraud for online merchants and marketplaces. It
helps retailers grow sales, lower costs, and improve customer experience through its Decision as
Service. It processes more than $50bn transactions annually
Kount $80 Boise ID 170Kount is the digital fraud prevention solution used by 6,500 brands, payment service providers,
gateways, wallets, processors, and acquirers
NS8 $35 Las Vegas NE 70+
NS8 safeguards online businesses against advertising fraud, transaction fraud, and poor site
performance. It provides behavioral analytics, user scoring and global monitoring to protect
against fraud
Onfido $111 London UK ~310
Onfido's AI-based technology assesses whether a user’s government-issued ID is genuine or
fraudulent, and then compares it against their facial biometrics. It helps over 1,500 companies
verify their users
Secured Touch $12 Palo Alto CA 37
SecuredTouch Inc develops and provides behavioral biometrics solutions for mobile transactions.
It offers U-NIQUE that creates a unique profile for each user by collecting and analyzing physical
behavior parameters, such as user finger pressure, finger size, and touch coordinates; U-
MANOBOT that detects malware, non-human, and fraudulent behavior upon activation; and
CONTINEW-ID that provides user access control over the entire device or individual applications.
The company was founded in 2014 and is based in Ramat Gan, Israel.
28
Selected attendee profiles
Fraud / compliance Total funds raised ($mn) Headquarters Total employees Description
Socure $64 New York NY 110+
Socure is a predictive analytics platform for digital identity verification of consumers and
businesses. Its identity verification increases auto approval rates, reduces false positives and
captures more fraud.
Spring Labs $39 Marina del Rey CA 50+
Spring Labs (Springcoin Inc.) is a technology company building the Spring Protocol, a blockchain-
based network that enables network participants to exchange valuable information without sharing
underlying source data
Transmit Security $40 Boston MA 120+ Transmit Security platform provides a solution for managing identity across applications while
maintaining security and usability
Loyalty platforms Total funds raised ($mn) Headquarters Total employees Description
Clinc $60 Ann Arbor MI 90+
Clinc is a global conversational AI training platform provider deploying the next generation of natural
language processing and deep learning technology for enterprises. It has deployments in 6
countries and 80 languages
Ibotta $98 Denver CO 580+Ibotta is a mobile technology company that enables users with its smartphone app to earn cash
back on in-store and mobile purchases with receipt and/or purchase verification
Loyal Zoo Ltd. $1 London UK 8
Loyalzoo provides a digital loyalty card service that provides small/medium size retailers and
eateries the ability to setup their own, custom made in-store loyalty program, to increase customer
retention and to compete with larger retailers.
POS Software / hardware Total funds raised ($mn) Headquarters Total employees Description
Clip $146 Mexico City Mexico 440+
PayClip develops Clip, a card reader that enables users to accept credit and debit card payments
through their smartphones and tablets and also develops & operates related cloud based
application. The company offers a portable card reading equipment that fits into the headphone
socket of smartphones and tablets.
Unified Payment NA Miami FL 272
Unified Payments, LLC, through its subsidiaries, provides turnkey payment-processing solutions to
small and medium size business owners (merchants) and independent sales organizations in the
United States. As of April 16, 2013, Unified Payments, LLC operates as a subsidiary of TOT Group,
Inc.
29
Selected attendee profiles
Digital wallet / processing Total funds raised ($mn) Headquarters Total employees Description
Tipalti $133 San Mateo CA ~220
Tipalti provides a cloud solution to scale and automate the global payables operation. It is the only
supplier payments automation solution to streamline all phases of the AP and payment
management workflow in one holistic cloud platform.
Token, Inc. $35 San Francisco CA 45Token provides hosted digital payment solutions for banks, e-commerce merchants, billers, and
developers
Tutuka NA Johannesburg South Africa 82Tutuka is a third party prepaid processor. Tutuka's innovative software can be used to issue closed
loop prepaid cards, loyalty cards, open loop prepaid cards, payroll cards and travel cards.
Upaid $1 Warsaw Poland 76
Providing multifunctional digital APIs for financial and payment institutions in 12 countries. End-to-
end Software and Service Platform enabling NFC payments, person-2-person, eCommerce and
other payments. uPaid aims to build end-to-end technology and services platform for fintech
companies and innovative financial institutions together with building own B2C platforms in
payment area.
Willport Trust NA San Diego CA NAWILLPORTtrust (WPT) is the first deployment platform that allows for the electronic scheduling
and transferring of money, gifting, messaging and memories into future periods.
YellowPepper $53 Miam FL 45YellowPepper provides mobile banking and payment solutions to financial institutions in the Latin
American region. It has around 400,000 merchants and 6.6 million MAU
Zabo $1 Dallas TX 7 Zabo is a software that connects any crypto wallet to any application with just a few lines of code
South
Africa
30
Selected attendee profiles
Others Total funds raised ($mn) Headquarters Total employees Description
Addepar $206 Mountain View CA 350+
Addepar is a provider of technology for the wealth management industry. The company’s
performance reporting and analytics platform aggregates portfolio, market, and client data all in one
place. It works with financial advisors, family offices, and large financial institutions that manage
over $1.3 trillion of assets on the company’s platform
Calamatta Cuschieri NA Valletta Malta 106
Calamatta Cuschieri is an independent financial services firm offering services including
investment advice, live online trading, life insurance, savings plans, pension plans, wealth
management, fund administration, software development and marketing services.
Decision Logic NA San Diego CA 27
DecisionLogic is an advanced bank verification system that enables lenders to instantly verify a
potential borrower’s banking information online and in real-time empowering lenders to make fast
and accurate decisions.
Kasisto $46 New York NY 85Kasisto, creators of KAI, the leading digital experience platform for the financial services industry.
KAI is built with the deepest Conversational AI portfolio in the industry
Lendeavor $124 San Francisco CA 75+
Lendeavor is a technology-enabled lender to healthcare practices. It is building the modern bank for
healthcare providers to help improve the quality of care they provide to millions of patients
nationwide.
Retail Success NA Overland Park KS 45Retail Software provides a portfolio of retail software covering solutions like direct selling, POS and
inventory management, payment processing, and online marketing.
RS2 Software NA Mosta Malta 441
RS2 Software p.l.c., together with its subsidiaries, engages in the development, installation,
implementation, and marketing of computer software for financial institutions under the
BankWORKS name
Simplus $49 Salt Lake City UT 500+
Simplus is a global Platinum Salesforce Partner and the industry leader in Quote-to-Cash
implementations, providing enterprise-wide digital transformation through advisory, implementation,
change management, custom configuration, and managed services
Stash $189 New York NY 300+
Stash is a micro-investing app. The app unites investing, banking, saving, and learning into one
seamless experience. Over 2 million save and invest on Stash. There are 251,479 Satsh portfolio
combinations
Upswot NA San Francisco CA 23Upswot designs a white-label paperless SMB onboarding platform that automates insights-based
marketing.
