payments - EY-Innovalue · 2016. 12. 27. · payments Insight. Opinion. figure 2: Fintech start-ups by product category A major challenge for incumbents is their legacy systems. Many

I have recently been tasked by the organisers of this

year’s MPE conference in Berlin to attempt a forecast

of the future development of the acquiring and

processing industry over the next five years. While

predicting the future is always a daunting task, it

probably has been never more difficult to forecast

the future of the payments industry. Many different

factors are in effect in an industry that is undergoing

massive change.

The attempt to forecast industry developments over

the next five years raises a number of questions:

How will e-, m- and social commerce (via plat-

forms link Facebook, Instagram and Pinterest) or

the Internet of Things (IoT) drive electronic pay-

ments? What other growth drivers are there?

How will regulatory initiatives like IFR, PSD2 and

AML regulation influence profitability, business

models and the competitive landscape?

Which role will alternative payment methods

(APM) play in the future? Will there be equivalent

alternatives to card-based schemes that provide

acceptance across the globe and across channels?

What about the PAY-initiatives?

How will the price for payment acceptance evolve

and which other services are suited to generate

new income streams for merchant acquirers and

processors? Will payments be for free for mer-

chants eventually?

How will infrastructure developments like real-

time payment systems (RTPS) or the blockchain

and its applications change the nature of pay-

ments and facilitate the launch of new services

and service providers?

How will merchant requirements evolve (e.g.

“omni-channel”) and drive change in the indus-

try? Will mobile platforms develop into massive

merchant aggregators?

Which merchant acquirers and processors will be

best prepared to adapt to the changing industry

landscape and drive innovation in the market?

Revenue forecast

At the end, however, as for any forecast, it will all

show up in the numbers. Therefore, INNOVALUE

developed a detailed bottom-up model that fore-

casts net revenue and profit pools for POS- and

e-commerce acquiring, processing, terminal sales,

leasing and maintenance, gateway and other prod-

ucts and services for the European countries. As a

result, INNOVALUE expects the European net reve-

nue pools for merchant acquiring based on net

acquiring margins (MSC after interchange and

scheme fees) to grow from EUR 5.5 billion to

EUR 7.2 billion from 2015 to 2020 (CAGR 5.5 %),

with an over-proportional increase in revenues

coming from online acquiring. Net revenue growth

is driven by an increase in total purchase value

(TPV), while we expect the net acquiring margins to

shrink over time due to increasing competition

across all segments.

Acquiring in Europe is still an attractive, growing

business for the next five years. In terms of

growth opportunities, Europe is however outshined

by other regions and markets, particularly in

China, Southeast Asia and Latin America (for

e-commerce).

The fuTure of merchanT acquiring and processing – an indusTry forecasT

andreas haberseTzer

Partner

paymentsInsight. Opinion.

vol 12

COntent

1 The fuTure of merchanT

acquiring and processing –

an indusTry forecasT

Andreas Habersetzer discusses the future of merchant

acquiring and processing.

3 digiTal banking

INNOVALUE reviews the digital banking and payments

landscape: its evolution, the response from existing

players and the emerging “digital” start-ups.

5 conTacTless paymenTs

aT leading reTailers:

germany sTill lags behind

INNOVALUE presents the white paper "Merchant pay-

ment acceptance and mobile services: A reality check at

large merchants in Germany and the UK”.

7 public markeT valuaTions

and The markeT environmenT

Stocks have seen a rough start into 2016 as meaningful

slides occurred globally following what was a strong

year 2015. Markus Massem takes a look at valuation

drivers and benchmarks the different groups within the

payments universe.

9 m&a acTiviTy

What are the key drivers of M&A and IPO activity? Which

transactions made headlines in the 4th Quarter of 2015?

What are recent takeover rationales? Robert Kayser,

Apostolos Psaras and Philipp Steinbrück answer these

questions.

11 venTure capiTal

Once again the INNOVALUE team reviews the latest

payment startup funding activity (Q4 2015). What are the

payment segments investors were most interested in?

Which startup funding made headlines in the last quarter of

2015, and which have been the largest deals in 2015 at all?

13 m&a acTiviTy

Transaction overview

15 vc-acTiviTy

Transaction overview

payments Insight. Opinion.

Electronic payments in China have

been growing by 34 % at the POS (Source:

Red Book, Bank of International Settlement –

BIS) and 42 % online, while e-commerce vol-

umes in India and Indonesia have been growing with

130 % and 66 % last year respectively, according to

eMarketer. Given the low penetration of these

markets through electronic payments, it can be

assumed that the growth of emerging payment

markets will continue to exceed European growth

rates over the next years, relatively independent

of the overall economic development.

International capabilities

Few payment service pro-

viders are equipped to

capture the international

growth opportunity and

service merchants globally.

Of the Top 20 global

acquirers by number

of transactions processed

(according to the Nilson

Report), First Data is

closest to having a global

footprint (albeit on differ-

ent platforms). Global pay-

ments and Elavon have operations on more than

two continents. Wirecard, although not among the

leading global payment processors, has made

numerous acquisitions in high growth markets,

ranging from Singapore, to Indonesia, New Zealand,

South Africa, Turkey, Brazil etc. over the last few

years.

While established

acquirers and processors

are struggling in particular to establish

POS operations across the globe, gateways have

come up with the ambition to take their place at

the merchant interface and provide comprehensive

services (e.g. multi-

currency / -channel /

-payment method rec-

onciliation and collec-

tion) that marginalise

the task of acquirer

processors.

Business model

evolution

Therefore, the business

models of acquirers

and processors have

to evolve in order to stay competitive and maintain

the merchant relationship. Acquirers have to

evolve to business solutions providers, serving

the needs of merchants beyond payments. Within

payments, successful merchant acquirers are

providing a full suite of international omni-channel

payment solutions. In addition to payments

cards, merchant

acquirers provide acceptance

for alternative payment methods. Especially in the

micro and small merchant segment, acquirers

are able to leverage the merchant relationship and

provide a full portfolio of business solutions. Provid-

ing services beyond payments increases merchant

stickiness and results in longer relationships and

higher income per merchant. Acquirers need to

invest in the technical infrastructure to facilitate

new services in-house or via 3rd party integrations.

As acquirers will not be able to keep the pace with

technological change and undertake the investment

required, e.g. to develop an “open”, state of the art

platform, INNOVALUE expects further consolida-

tion and a significant reduction of the number of

players in the European market.

acquiring in europe is still an attractive, growing business for

the next five years (…) europe is however outshined by other regions and markets, particularly in China, southeast asia and Latin america

2

page 1


The digital banking journey started over thirty years

ago when “tele-banking” services allowed custom-

ers to interact with their bank using their phone

without needing to travel to the branch during its

opening hours. It progressed with the widespread

adoption of the internet by households and banks

offering websites to advertise their products and

enable customers to perform simple transactions

online. The launch of the iPhone advanced the con-

cept of digital banking to one whereby customers

could interact with their bank anytime and any-

where – no longer reliant on the traditional physical

banking channels. The app store also enabled new

business models and the emergence of the “sharing

economy” with new companies emerging (for

example Uber). The primary theme for these new

businesses has been disintermediation: no longer is

it necessary to use an established platform (e.g. a

taxi company) to interact with service providers,

instead, consumers can connect directly to the pro-

viders (e.g. the taxi driver). Digital has survived the

dotcom crash and financial crisis and its adoption in

banking has been driven by both the technical

developments as well as the digitisation of

commerce.

Despite digital’s age, many “incumbent” banks have

struggled to fully leverage end to end digital capa-

bilities and continue to rely on physical support to

serve customers. They have CRM systems that are

not integrated across all product types and channels

and therefore do not enable a holistic, single view of

the customer. Or they offer online application forms

that must be printed and posted to the bank to be

accepted. Opening a mortgage in the UK takes

between five and forty days1 yet a fully digital pro-

cess has allowed the process to be completed in as

little as 24 minutes2. Today’s digital offering from

the banks is often insufficient to meet the needs of

customers who expect to use multiple channels

seamlessly to complete transactions despite the

millions or billions of pounds that the banks are

investing in digital transformation programmes.

francesco burelli

Partner

megan John

Manager

digiTal banking

1 Source: The Telegraph I 2 Source: HSBC

figure 1: Digital development timeline

3

page 1


figure 2: Fintech start-ups by product category

A major challenge for incumbents is their legacy

systems. Many banking systems are decades old,

they were developed in the 1970s or 1980s to

support a business model where a bank branch

closed at 5pm each day and accounts were set-

tled overnight. These systems were therefore

built around “batch pro-

cesses” that could run at

specified intervals. Today’s

business models are trying

to provide customers with

24/7 access to up to date

information and therefore

need to operate as “real-

time” systems. Changing

the underlying infrastruc-

ture is time consuming and costly and, since the

advent of the iPhone (which made real time much

more of a necessity), banks have also been react-

ing to the financial crisis with most of their avail-

able investment costs being spent on regulatory

driven changes.

While the incumbent banks focus on how to

transform their legacy systems, developed in the

pre-digital era, a plethora of fintech start-ups

have emerged. These typically focus on a single

product offering and have a digital enabled archi-

tecture at their core. They have created a new

financial services marketplace, often leveraging a

peer-to-peer approach – allowing savers and bor-

rowers to transact through an app or website and

without the traditional banking infrastructure.

Zopa launched in 2004, provid-

ing peer to peer lending,

Wonga in 2008 with

online loans and

the UK’s first

digital bank

Atom gaining

the digital banking landscape of the future will include

both incumbents and new players, all serving the customer anywhere, anytime

regulatory approval in 2015. These start-ups are

focusing on areas with less regulation (e.g. lend-

ing and payments) and are likely to stay as niche

providers given the expense (~GBP 10 million) and

time (4 – 40 months) to obtain a banking license1.

The new players

will gain market

share from the

existing providers -

in three years,

potentially 20 % of

US lending will be

through alternative

providers.2 How-

ever, they will not

replace them – the incumbents have legacy cus-

tomers and the ability to invest in new customer

acquisition. They are also investing in innovation

and they are partnering with the new providers

(for example BBVA’s investment in Atom bank).

The digital banking landscape of the future will

include both incumbents and new players, all

serving the customer anywhere, anytime.

1 Source: thefinanser.com I 2 Source: Goldman Sachs

4

page 1


conTacTless paymenTs aT leading reTailers: germany sTill lags behind

Contactless payment acceptance at leading retail-

ers in Germany continues to be the exception. Just

under a third (30 %) enable contactless payments

via smartphone, credit

card or wearables like

smartwatches and bra-

celets. In contrast, in the

United Kingdom the fig-

ure is already at 63 %. In

addition, both markets

differ strongly with

regard to the offered

smartphone apps. These and more results are

shown in our recent white paper, in which the pay-

ment acceptance and mobile services of 60 major

retailers in the UK and Germany are compared.

All of the analysed UK merchants accept credit

cards, while about 27 % of the merchants in Ger-

many accept only cash and debit cards and no credit

cards. This number would be even higher if not for

the fact that the big discounters such as Aldi, Lidl

and Netto introduced credit card acceptance in the

past year. However, we already know of multiple

merchants that intend to introduce both credit card

and contactless acceptance in 2016.

Payment acceptance and Mobile Services: inno-

vators are ready for omni-channel retail

In addition to payment acceptance, the smartphone

apps of the largest retailers were analysed in the

white paper. We determined maturity levels for both

areas and determined from the results how

advanced the individual companies are. About one

third of the analysed merhants in Germany can be

categorised as innovators who offer their customers

both at least credit card payments as well as mobile

services that integrate into the in-store systems or

even payments via their apps (10 %). In the UK 46 %

of companies surveyed already have set up their apps

in this way to be optimised for omni-channel retail

(Payment apps: 13 %).

Another third of Germany's leading merchant

accept credit cards but limit their own apps to sim-

ple services such as a mobile version of the online

shop without integration in in-store systems. This

kind of setup is only found at one in ten of the large

UK retailers. This is a clear indication to us that a

degree of uncertainty

about the expected cus-

tomer behavior prevails

at the German mer-

chants. The invest-

ments in fully integrated

omni-channel retailing

systems are avoided, at

the same time they do

not want to miss the trend completely.

However, these limited solutions lack true cus-

tomer value. The study shows 43 % of large

retailers in the UK have no dedicated native app

while in Germany this number is at 27 %.

Among the innovators in Germany we see for

example Douglas, Edeka, Obi and Media Markt.

The spectrum is therefore relatively wide across

industries. Also in the follower group, we find

companies from almost all sectors of retail. A

complete lack of apps can be observed for large

furniture discounters. We expect the German

merchants to follow the example we have seen in

the UK and over time to upgrade their mobile ser-

vices to enable omni-channel retail or to drop

their own native apps all together.

Thomas grohnerT

Principal

kalle dunkel

Senior Associate

figure 1: analysed merchants per maturity level in %

0

cash only

1

debit cards

2

credit cards

3

contactless (card, phone,

wearable)

63 %

37 %43 %

0 %

27 %

0 %0 %

30 %

GER

UK

figure 2: analysed merchants per maturity level in %

33 %

13 %

33 %

3 %7 % 7 %

43 %

27 %23 %

10 %

0

no app

1

pure content

2

online services via app

3

interaction with store

system

4

proximity payment

GER

UK

We already know of multiple merchants

that intend to introduce both credit card and contactless acceptance in 2016

5

page 1


INNOVALUE White Paper

In the white paper "Merchant payment acceptance

and mobile services: A reality check at large mer-

chants in Germany and the UK" INNOVALUE anal-

yses payment options and customer apps of

60 large retailers in Germany and the UK in seven

verticals (food, DIY & gardening, fashion & cloth-

ing, department store,

personal care, consumer

electronics, furniture &

decoration). The compa-

nies studied have a mar-

ket share of 50 % (UK)

or 37 % (D).

Please visit the publications section at

www.INNOVALUE.com if you are interested

in reading the full report.

Conclusion

Through the combined evaluation of payments

acceptance and mobile VAS we believe that both

the innovation focus (Innovators and First Movers)

and the core business focus (Player without mobile

offerings) are valid approaches. The “stuck in the

middle position” (Follower) should be avoided.

Offering pure online ser-

vices via an app alone,

without true gains for

the consumer, is not

instrumental in achiev-

ing business success in

retail.

pure online services via an app alone,

without true gains for the consumer, is not instrumental in achieving business success in retail

6

page 1


Stocks have seen a rough start into 2016 as mean-

ingful slides occurred globally following what was

a strong year 2015. The S&P 500 lost 7 % and the

STOXX 600 13 % over the last

three months. The declines

were driven by a number of

factors, including concerns

over global growth prospects.

The growth of the Chinese

economy in 2015 was the

lowest since 1990, but a US

recession is currently not

seen as likely. Other impor-

tant factors that have been

pushing markets downwards

include the movement of oil

prices and concerns about the

general health of European banks. Some relief

came from the minutes of the ECB's January

meeting, which reinforced a possibility that policy

makers will enact further stimulus measures for

public markeT valuaTions and The markeT environmenT

markus massem

Manager

the great majority of companies in our payments

universe have ended up lower at the end of the three month period, with the correction in the market at the beginning of the year being one of the main drivers for the decline

the Eurozone economy. Also further rate hikes of

the Federal Reserve are currently seen as less

likely, even though increases in rates can be seen

as a sign that the economy is thought to improve.

The great majority of public companies in our

payments universe (see end of article for compo-

sition) have ended up

lower at the end of the

three month period

(with only 5 out of 21

stocks posting gains).

The correction in the

market at the begin-

ning of the year was

one of the main drivers

for this overall decline,

in addition to company

specific events. Since

the beginning of the

year, only 6 out of the

21 stocks are still in positive territory. The overall

payment index is down by 11 % over the past three

months and 7 % since the beginning of the year.

The acceptance bucket lost 15 % over the three

months period. Global Payments, which was

among the strongest performers in the accep-

tance bucket in 2015, has lost 17 % in market

value over the past 3 months. The company’s

share price has declined continuously since the

announcement of the acquisition of Heartland

Payments at USD 100 a share in cash and stock

on December 15th. Ingenico tumbled 12 % after

JPMorgan downgraded the company following

the release of 2015 results. Margin guidance for

2016 was weak at 21 % compared to the 23.3 %

The payments universe (alphabetical order):

Acceptance: First Data Corp, Global Payments,

Ingenico, PayPoint, Vantiv, Verifone, WorldPay

Processing: Cielo, Euronet Worldwide, FIS,

Fiserv, Total System Services (TSYS)

PSP/Online payments: PayPal, Paysafe, Wirecard

Issuing/Prepaid solutions: FleetCor, Green Dot, WEX

Schemes: American Express, MasterCard, Visa

Sources: INNOVALUE research and company filings;

Google Finance for share price data

consensus estimate and the 23.1 % the company

delivered in 2015. Vantiv is one of the few shares

that gained since the beginning of the year but is

still down 3 % over the last 3 months.

Following its IPO at USD 16 a share on October

15th of last year, First Data has lost 30 % of mar-

ket value, with most of the decline occurring in

February, even dipping below USD 10 in early Feb-

ruary. The company issued Q4 results which

missed estimates on earnings, posting a loss, but

beat revenue estimates. WorldPay on the other

hand has been able to post gains since its IPO on

the 13th of October, gaining 27 % when compared

to the offering price of 240p. Earning reports for

2015 will be published in early March.

The comparables within the processing bucket lost

about 13 % over the last three months. Cielo was

one of the underperformers, as Brazil's largest card

payment processor missed fourth-quarter profit

estimates due to rising costs and expenses, more

than offsetting robust card processing revenues.

Euronet plunged upon the release of earnings, as

the company narrowly missed the consensus esti-

mate on earnings and revenue came in short of

expectations. Fiserv was the only stock to gain

over the 3 months period, rising 1 %.

The comparables within the PSP and online pay-

ments category gained about 4 % over the last

three months. Paysafe demonstrated the stron-

gest gains in share price, jumping 16 % throughout

that period. The company is reporting results in

mid-March but issued a statement in early 2016,

expecting full-year results to be ahead of market

expectations, helped by strong growth across its

product lines, particularly in its North American

figure 1: Indexed stock price performance last 3 months February 18th 2016

Acceptance Processing PSP/Online payments Issuing/Prepaid Schemes S&P 500

110

105

100

95

90

85

80

75

01.12.15 29.12.1517.11.15 15.12.15 12.01.16 26.01.16 09.02.16

7

page 1


processing business. Wirecard AG lost 3 % over

the last three months while PayPal soared upon

the release of fourth quarter earnings, reporting

better-than-expected quarterly revenue. The

main drivers behind the revenue were the surge in

processing volumes as well as new customer

additions, with the company acquiring more cus-

tomers in the fourth quarter of 2015 than any

quarter in the company's history. PayPal also

announced a buyback of USD 2 billion of its stock.

The comparables of the issuing / prepaid solu-

tions bucket lost about 9 % over the last three

months, with WEX and Fleetcor posting share

price losses and only Green Dot posting gains.

WEX is near a three year low as the company gave

a weak Q1 and 2016 outlook. Green Dot posted

gains, however, this is partially based on specula-

tion regarding a potential sale of the company.

Lastly, the trading comparables within the

schemes bucket lost a total of 15 % over the last 3

months. American Express lost 25 % of market

value over the period while MasterCard and Visa

lost 12 % and 10 % respectively. American Express

announced its plan to cut costs by USD 1 billion

over the next two years. The company’s plan will

include layoffs and streamlining divisions such as

marketing. Chief Marketing Officer John Hayes

will leave the company. Visa reported earnings of

69 cents per share, beating estimates of 68 cents

but fell slightly short of revenue expectations with

reported revenue of USD 3.57 billion against the

estimate of USD 3.61 billion. MasterCard was also

slightly short of meeting its revenue expectations,

but surpassed its earnings expectations for the

fourth quarter of its fiscal year 2015.

figure 3: payments universe trading multiples as of February 18th 2016

0.0x3.4

4.32.5

5.2

24.8

8.6

10.0x

20.0x

25.0x

30.0x

6.4

4.0 4.2

17.615.4

14.2

9.7

3.8

10.812.9

10.5

16.3

20.0

EV/REV CY 14 EV/REV CY 15 EV/EBITDA CY 14 EV/EBITDA CY 15

Acceptance Processing PSP/Online payments Issuing/Prepaid Schemes

70 %

60 %

50 %

40 %

30 %

20 %

10 %

0 %

7.1 % 6.5 %

21.8 %

15.5 %

23.9 %

29.6 %26.0 %

46.4 %

23.8 %28.5 % 26.2 %

36.5 %

62.8 %

figure 2: payments universe operational metrics as of February 18th 2016

Revenue growth CY 14-15 EBITDA margin CY 14 EBITDA margin CY 15

15.0x

5.0x

2.4 %

61.4 %

9.9

8

page 1


The last quarter of 2015 showed a new peek

in M&A activities within the payment industry.

A total of 49 transactions have been reported

with a total disclosed volume of USD 31.9 billion.

Among those deals Visa Inc.’s acquisition of Visa

Europe stands out, aiming to improve its com-

petitive positioning and the acquisition of Win-

cor Nixdorf by Diebold, focusing to improve cost

efficiency. Additionally, there have been a range

of deals driven by the desire to obtain access to

new technologies such as the block chain.

M&A activity and deal characteristics

A total of 49 M&A transactions were announced

in the fourth quarter of 2015. This represents a

36 % increase over the 36 deals announced in

the same period of 2014. The financial terms

of 18 transactions, with a total volume of

USD 31.9 billion, were disclosed. The substantial

increase in deal activities and deal volume in

the last 12 months reflects the growing maturity

of the payment landscape.

The deal value of Q4 was heavily driven by the

acquisition of Visa Europe by its former parent

company Visa Inc. for USD 23.1 billion. The under-

lying enterprise value was 61.8x profit before tax.

The rationale behind the deal is Visa Inc.’s goal

to improve its competitive position in Europe

and regain control over formerly owned subsidiar-

ies. Visa is targeting savings of USD 200 million

from the deal in 2020. Moreover, Visa aims to

streamline its investment efforts in technology

assets. It is expected that Visa Europe will

increase the rates currently charged to banks such

as Barclays and Lloyds, which previously owned

Visa Europe. Such rate increases are likely to

affect MasterCard’s competitive positioning and

might thereby be beneficial to other issuers. It will

be interesting to see how Visa will reposition itself

in the near future towards its customers and

users.

roberT kayser

Senior Associate

aposTolos psaras

Associate

philipp sTeinbrück

Associate

m&a acTiviTy

The median EBITDA-multiple from 2014 to 2015

decreased, from 14.7x to 13.1x. The median

revenue multiple from 2014 to 2015 increased by

25 %, from 2.8x to 3.5x. Global Payments’ acquisi-

tion of Heartland Payment Systems, valued at

USD 3.7 billion, equates to a multiple of 20.4x

EBITDA or 1.6x revenue. The acquisition of GI

Retail by Wirecard equates to a multiple of 19.9x

EBITDA or 7.5x revenue. WEX’s acquisition of

Ozforex for USD 629 million equates to a multiple

of 15.9x EBITDA or 6.3x revenue The enterprise/

revenue multiple for WEX’s USD 1.5 billion acqui-

sition of Electronic Funds is 10.0x.

Geographically, 49 % of the targets were based in

North America (2014: 46 %), followed by 33 % in

Europe (2014: 35 %) and 8 % in Asia/Pacific

(2014: 7 %). In a year on year comparison North

America gained importance while Europe “slowed

down” in comparison. However, the overall attrac-

tiveness of the payment market seems to main-

tain its momentum and the overall trend to

expand into new geographic areas by engaging in

inorganic growth strategies does not seem to

have slowed down. The acquisition of India based

Gi Retail by German based payment solutions

provider Wirecard was mainly driven by the goal

to continue the expansion into the Asian market.

The acquisition continues Wirecard’s broad inter-

national expansion, being one of the most active

investors in 2015. A similar strategy was followed

for example by FundingCircle, a UK based P2P

small business lending circle, which acquired Ger-

man based Zencap in order to expand its business

in central Europe.

Key drivers of and rationale for M&A activity

Overall, the emerging payment companies and

closely related alternative financial institutions

continue to become a serious threat to the tradi-

tional banking institutions. This trend fuels inves-

tors’ willingness to invest and acquire growing

payment players and scale operations across

national borders.

In Q4 2015 we saw an overall growth in the number

and volume of M&A transactions compared to the

previous quarters. Similar to the first half of the

2015, ‘payment acceptance devices’ represented

the most active segment of M&A activities. While

in H1 of 2015 about 19 transactions in payment

acceptance devices & software took place,

Target by region

North America Europe Asia

Middle East, Africa (MEA) Australia South America

figure 3: 2014-2015 funding comparsion

figure 1: Value and volume comparsion

M&A Market development

Disclosed value [USD billion]Number of transactions

Dis

clos

ed v

alue

[U

SD b

illio

n]

Num

ber

of t

rans

acti

ons

10

15

20

0

10

20

30

40

50

02014Q4

2014Q1

2015Q2

2015Q3

2015Q4

3638 39

4649

14.1

31.9

3.63.62.4

25

30

35

51.6

Revenue Multiple EBITDA multiple

figure 2: median value, revenue, ebItDa

Median enterprise value multiples

16x

14x

2x

9.5

14.5 14.7

3.72.8

13.1

12x

10x

8x

6x

4x

2012 2013 20152014

3.5

2 %2 %6 %

8 %

33 %

49 %

2014

2015

9

page 1


we saw an astonishing increase of 72 %, totalling in

31 transactions in H2 of 2015. Next to our current

growth segments we also saw consolidation in

more mature segments such as Issuing and ATMs.

The main drivers to engage in mergers and acquisi-

tions were to achieve synergies and improve inter-

national footprint.

The global trend away from cash payments towards

card based/mobile based payments creates pres-

sure on the traditional ATM business. German

Wincor Nixdorf, currently No. 3 in the world, suc-

cumbed to the pressure and was sold to the Ameri-

can ATM producer Diebold, currently No. 2. Wincor

Nixdorf and Diebold aim to achieve cost savings of

USD 160 million by streamlining operations. Addi-

tionally, the merger will strengthen the merged

companies’ global reach, particular in North and

South America as well as Europe.

We saw a range of mergers and acquisitions aiming

to increase the competitive positioning of the com-

pany and/or gain competence in emerging tech-

nologies. US based Emida Technologies bought

Quippi in the beginning of October for an undis-

closed amount with the aim to enhance its portfo-

lio by a money transfer solution. Flywire bought

Uni-pay with a similar aim, enhancing peer transfer

in its customer offer. Another company growing

through mergers and acquisitions was Heartland,

one of America’s largest payment processing com-

panies. Heartland acquired Digital Dining, a pro-

vider of restaurants POS, at the end of October

2015. Through the acquisition Heartland aims to

increase its national reach. Later in Q4 Heartland

was bought by Global Payments. The move comes

as Global Payments is expanding its reach into the

SME segment and aims to foster the vertical inte-

gration of the company.

In Q4 there have been two major IPOs which were

expected by investors and have been a serious

market test for the currently high market valua-

tions. Firstly, there was First Data, which was taken

off the New York Stock Exchange in 2007 as one of

largest leveraged buyouts in history by KKR. During

that time the company reshaped itself aiming to

offer payment solutions to SMEs and fostering its

interaction with clients. The IPO was priced at USD

16, valuing the firm at USD 14 billon. However, First

Data reduced its IPO price substantially before

going public. Though shares were initially targeted

to be offered between USD 18 and USD 20 the firm

reduced the share price to USD 16. This move was

reasoned by heavy market volatility mainly caused

from a heavy stock devaluation in the Chinese

market during H2 of 2015. The rationale behind the

move is First Data’s need to reduce its debt load,

currently reducing the firm’s profitability and the

pressure on KKR to bring returns to its investors

and reduce its exposure to its largest asset. Since

its IPO the share price of First Data dropped by

nearly 26 % from USD 16 to USD 11.86 (19.02.2016).

The second major IPO was Square. The company,

which has not made money so far, has been valued

at around USD 6 billion

in the last Series E fund-

ing round. The IPO price

was set at USD 9 per

share, valuing the com-

pany at around USD 2.9

billion or more than

50 % (!) below the last

financing round. This

lower price tag was set

as managers of larger mutual funds and hedge

funds appeared to view Square’s completion as

stronger than initially thought of. The “Clover Go”,

a credit card reader that can be plugged into a

smartphone was introduced by First Data and

might affect the market share of Square in the

future. Though the share rose to over USD 13 per

share in November (23.11.2015) the price dropped

to USD 9.97 (-23 % as of 19.02.2016).

A comparably small but interesting deal from a

German perspective was the acquisition of PAY.ON

by ACI for USD 200 million in November 2015.

PAY.ON is a German based eCommerce payment

gateway service provider while ACI is a global

operating provider of electronic payments and

bank solutions. PAY.ON offers more than 300 pay-

ment methods over its SaaS platforms and is con-

nected to 160 banks. Through the white label

product PaySourcing PAY.ON’s eCommerce cus-

tomers can outsource payment and risk manage-

ment processes or purchase them via the cloud.

Through the acquisition, ACI gained access to

those valuable capabilities and can enhance its

product offering in the eCommerce space.

A technology that has gained momentum in the

overall H2 of 2015 was block chain which is the

backbone of the crypto currency Bitcoin (which we

already analysed in our last issue). The block chain

technology generally represents the potential to

reduce complexity and costs in the clearing and

settlement process and offers a range of applica-

tions in data storing and currency transfers.

Because of its tremendous potential impact on the

financial industry the block chain gained not only

attention from the media but also from investors

and even larger banking institutions such as BBVA,

Bank of America and Goldman Sachs. For example

Blockstack, an US based company offering “block-

chain-as-a-service” to financial institutions, was

bought by Digital Asset Holding from the USA.

This acquisition was

driven by Digital Asset’s

goal to offer a block

chain solution to its cli-

ent base and enhance

its product portfolio by

this technology. Block-

stack benefits from

Digital Asset’s platform

and client base and

aims to expand its technology and product range

within the new entity.

For 2016 we are optimistic that the payment indus-

try will remain in important driver for M&A. It will

be of high interest to see whether emerging tech-

nologies, such as the block chain or the increasing

use of mobile wallets, will substantially change the

business model of traditional financial institutions.

The slump in the market at the beginning of 2016

has made many investors nervous and put poten-

tial capital market measures temporary on ice.

Nevertheless, there are still rumours about the

eventual IPO of Alibaba’s finance arm which owns

AliPay and is considered as the “PayPal of the

East”. If filled for going public it could become one

of the biggest IPOs seen for a long time.

the global trend away from cash payments towards

card based/mobile based payments creates pressure on the traditional atm business

Sources: Bloomberg, Financial Times, Mergerstat,

Mergermarket, Nilson, Reuters, company publications

10

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venTure capiTal

sTefan Thomalla

Associate

Funding Activity

In the last quarter of 2015, 48 funding rounds were

recorded, accounting for a total disclosed volume

of USD 345.5 which

split into USD 334.3

million in equity and

USD 11.2 million in debt

finan cing. Al though this

quarter’s funding acti-

vity ex ceeded the pre-

vious by 23 % re gar-

ding the number of

deals closed, the total

(disclosed) volume de-

creased by approximately 27 %. As a consequence,

the funding volume per round, with an average of

USD 7.2 million, decreased by an astounding 40 %

compared to the previous quarter.

North America continues to lead the field (by

number of deals) and accounts for almost half of

the disclosed funding rounds. However, European

based payment FinTechs, with 11 funding rounds,

dominated in terms of financial volume. Out of

USD 345.5 million, USD 101.6 million were raised

in Europe, making it by total financial volume the

biggest winner of this quarter. Asia continues to

secure a place among the top three continents,

with a total amount of 11 deals (USD 57.9 million).

Oceania reported a total of 3 funding rounds,

around a 6 per cent share. However, due to the

largest funding of the quarter, Oceania finished

second, with a total funding volume of USD 77.8

million. Just two funding rounds were closed in

Africa in the fourth quarter of 2015. South America

did not report payment FinTech funding in the last

quarter of 2015.

Investment Trends

Payment acceptance devices and software’ held

onto the number one spot for the largest number of

funding rounds with a total of 17 and a disclosed

volume of USD 157.0 million. This indicates consis-

tent interest in the sector. Similarly to the previous

quarter, ‘payment acceptance devices and soft-

ware’ was the largest category in terms of

number of deals and size (with three out of the top

four funding rounds).

Nevertheless, the aver-

age value of funding

declined, reporting only

one very large funding:

iZettle (provider of a

mobile POS solutions),

who raised USD 68.2

million in a Series D fun-

ding from Intel Capital,

Zouk Capital LLP, Cre-

andum, Dawn Capital, Index Ventures, MCI Capital

SA and Northzone. The size of the deal is particu-

larly notable since

iZettle raised another

considerably large fun-

ding two months ear-

lier (USD 67.0 million,

August 2015). The two

lead investors have

been again Intel Capi-

tal and Zouk Capital

LLP. The remaining

deals were comparatively smaller in size (the sec-

ond largest deal was USD 28.0 million for Poynt).

Based on the number of deals, ‘alternative pay-

ment systems’ was the second largest funding seg-

ment of the last quarter of 2015 with 10 deals.

While the number of deals de creased only slightly

in comparison to Q2 2015 (11 deals), the financing

volume declined by more than 50 %. Nigerian

Paga, founded in 2009, obtained the segment’s

largest funding (USD 13.0 million, Series B). The

company’s mobile app allows users to send money

to any mobile phone number and consents the

beneficiary to redeem the payment at any Paga

agent across Nigeria or ATM via cardless with-

drawal. Due to a rather low card penetration within

the African continent, this money transfer option

appears promising in applicability.

Although only 1 funding round was closed in the

‘acquiring’ segment, with an amount of USD 72.0

million, Australian based Tyro Payments raised the

largest funding of fourth quarter, making the seg-

ment the second largest by the financial volume in

Q4. The funding round was led by Tiger Global

Management, supported by Mike Cannon-Brookes

and TDM Asset Management. Tyro Payments,

which has inked a partnership with PayPal in June

2015, is a merchant

credit, debit and EFTPOS

acquiring company.

Similarly to the trend

seen throughout the year,

‘money transfer’ was the

third largest segment by

the number of deals in

the last quarter of 2015.

Chinese Chillr, raised USD 7.0 million in Series A

funding from Uniqorn Ventures, Blume Ventures

and Sequoia Capital. The subsidiary of Indian

MobME Wireless allows P2P and P2B money

transfers.

edoardo cenci

Associate

funding activity by region

north & Central america 21

asia 11

europe 11

Oceania 3

africa 2

Total 48

funding activity by segment

payment acceptance devices + software

17

alternative payment systems 10

money transfer 8

Issuing 4

security 3

processing 2

Other 2

Data analytics 1

acquiring 1

Total 48

although this quarter’s funding activity exceeded the previous

by 23 % regarding the number of deals closed, the total (disclosed) volume decreased by approximately 27 %.

‘payment acceptance devices and software’ held onto the number

one spot for the largest number of funding rounds with a total of 17 and a disclosed volume of UsD 157.0 million

11

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Looking back to the whole year, the three largest

fundings were concluded in the first half of the

year. US based Affirm led the entire Venture

Capital field with a total funding of USD 275.0 mil-

lion from Spark Capital (lead investor), Andrees-

sen Horowitz, Jefferies Group, Khosla Ventures

and Lightspeed Venture Partners. The main prod-

uct of Affirm is an alternative credit card that

allows customers to pay installment loans for

online purchases in three months to a year.

Half of the top ten fundings are raised by compa-

nies that provide payment acceptance devices and

software. A total of USD 321.0 million were raised,

making the segment the second largest in 2015

behind ‘alternative payment systems’ (USD 350.0

million).

Conclusion

Overall, 2015’s Q4 represented a reasonably

strong end of the year with investments that

showed geographic diversity and a range of invest-

ment focuses. Nevertheless, the most distinctive

segments received similarly high attention

throughout the whole year and it can be expected

that this trend will remain in 2016.

largest deals (financial volume in usd million)

affirm 275

WorldRemit 100

Coinbase 75

tyro payments 72

iZettle 68

iZettle 67

GmO Internet 65

Lightspeed 61

shopkeep 60

transferWise 58

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Date Announced

Target Company Country TC Industry Buyer(s) (Country) Country Transaction value (USDm)

1 01/10/15 Uni-Pay United Kingdom

Provides tuition processing services Flywire USA N/D

2 06/10/15 FlowPay USA Provides a mobile payment technology platform AppTech USA N/D

3 06/10/15 Quippi USA Provides international money transfer services Emida Technologies USA N/D

4 06/10/15 Precidia Technologies Canada Premier provider of integrated payment solutions Merchant-Link USA N/D

5 12/10/15 Odysii Technologies Israel Provides software solutions for marketing intelligence at the point of sale

Gilbarco USA N/D

6 13/10/15 Curb USA Manufactures and distributes software applications for mobile travel management

Verifone USA N/D

7 15/10/15 mCash Norway Provides mobile payment solutions SpareBank 1 Norway N/D

8 15/10/15 Benaissance USA Provides software based billing and payment solutions

WEX USA 80

9 16/10/15 Tab Payments Canada Operates as mobile payments application for tastemaker diners

Velocity United Kingdom

N/D

10 19/10/15 MyPAY Myanmar Provides a mobile payment system fastacash Singapore N/D

11 19/10/15 Advanced Payment Systems USA Provides processing services Payscout USA N/D

12 19/10/15 Electronic Funds Source USA Provides payment processing services WEX USA 1,500

13 20/10/15 Zencap Germany Provides small- and medium-sized companies with a financing option

FundingCircle United Kingdom

N/D

14 21/10/15 Zwitch India Provides online payment, recurring billing, and mobile inapp payment services

Citrus Payment Solutions India N/D

15 21/10/15 LePotCommun.fr France Owns and operates online communal fund S-money France N/D

16 27/10/15 Gi Retail India Provides payment processing services Wirecard Germany 376

17 29/10/15 Blockstack USA Offers a “blockchain-as-a-service” to enable financial institutions to develop applications on a private blockchain

Digital Asset Holdings USA N/D

18 30/10/15 Digital Dining USA Provides a point-of-sale solution for the hospitality industry

Heartland Payment Systems USA N/D

19 02/11/15 Shopmium France Provides mobile shopping services Quotient Technology USA N/D

20 03/11/15 VISA Europe United Kingdom

Provides visa credit and debit cards Visa USA 23,100

21 03/11/15 Gazelle USA Offers an online electronics trade-in service Outerwall USA 18

22 04/11/15 Exatouch USA Provides cloud-hybrid point of sale software solutions

Electronic Payments USA N/D

23 04/11/15 PAY.ON Germany Provides payment technologies for service providers in global trade

ACI Worldwide USA 200

24 09/11/15 InterCard Germany Provides processing of cashless payments with banking, credit and store cards

Verifone USA N/D

25 11/11/15 Zoom-Cash (Legal Funding Payment System Business)

USA Provides legal funding payment services Necessity Funding Partners USA N/D

26 18/11/15 Product Support Solutions USA Provides technical solutions and innovative products Eckoh USA 8

27 19/11/15 Ozforex Australia Provides foreign exchange services Western Union USA 629

deal acTiviTy m&a Q4 2015

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Date Announced

Target Company Country TC Industry Buyer(s) (Country) Country Transaction value (USDm)

28 19/11/15 SEOshop Netherlands Provides e-commerce solutions Lightspeed POS Canada N/D

29 19/11/15 Uncover United Kingdom

Provides a mobile application that provides restaurant reservation

Velocity United Kingdom

N/D

30 19/11/15 Didix Netherlands Distributes electronic digital gift cards & box sets Blackhawk Network USA 41

31 23/11/15 Wincor Nixdorf Germany Provides information technology solutions and services for retail banks and retail industry

Diebold USA 1,756

32 23/11/15 Fintrax Ireland Provides multicurrency payment services Eurazeo France 335

33 24/11/15 Acquirer Systems Ireland Provides testing software and validation tools to the global payment industry

Underwriters Laboratories USA N/D

34 25/11/15 Playerize Network Canada Provides alternative payments and virtual rewards Perk.com USA 3

35 30/11/15 Paypoint United Kingdom

Provides online payment processing services Capita United Kingdom

20

36 30/11/15 Corona Labs USA Operates a cloud-based mobile rewards platform Perk.com USA 2

37 01/12/15 Calpian (US assets) USA Provides payment processing solutions Excel USA N/D

38 02/12/15 Social Money USA Provides digital deposit saving Q2 USA 11

39 03/12/15 PayLogic Germany Payment and administrative solution for venues entry ticket sales and handling

Direct Connect USA N/D

40 06/12/15 Near.in India Connects users with local businesses for home services through a marketplace application

Paytm India 2

41 08/12/15 AirTag France Provides mobile shopping solutions, in-store systems and secure payment applications

Morpho France N/D

42 09/12/15 Circle Plus USA Mobile app enabling merchants to accept credit card and Bitcoin payments (scans the credit card and processes payments)

Tarsin Mobile USA N/D

43 10/12/15 Trustev Ireland Offers solutions to decrease fraud in the ecommerce space

TransUnion USA 44

44 14/12/15 Diners Club Japan Japan Scheme that offers users (members) a variety of payment solutions as well as benefits and exclusive offers

Sumitomo Mitsui Trust Japan N/D

45 15/12/15 Heartland Payment Systems USA Provides bankcard payment processing services to merchants

Global Payments USA 3,696

46 22/12/15 Stratos Card USA Provides a all-in-one payment card Ciright One USA N/D

47 23/12/15 CashU United Arab Emirates

Provides a payment platform for e-commerce Genero Capital United Arab Emirates

N/D

48 28/12/15 Payzone UK United Kingdom

Consumer payments acceptance network Grovepoint Capital United Kingdom

52

49 30/12/15 Mobiltek Poland Offers mobile payment services EuroVentures Poland N/D

14

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Target (Country) Round Volume (USDm)

Investor(s) Funding (USDm)

Description

1 Chillr (CN) A 7.00 Sequoia Capital 7.50 Chillr provides a mobile app that allows P2P and P2B money transfers.

2 Coinplug (KR) B 5.00 SBI Investment 8.30 Coinplus is a provider of secure Bitcoin storage and payment processing.

3 Paga (NG) B 13.00 Adlevo Capital, Capricorn Investment Group, Goodwell West Africa, Omidyar Network

13.00 Nigeria based paga provides a solution that allows clients to use their phone as an electronic wallet.

4 Ripple Labs (US) A 4.00 CME Group, Santander Innoventures, Seagate 38.40 The peer-to-peer and virtual currency protocol Ripple can be used globally to make transactions in any available currency.

5 Spreedly (US) A 2.50 N/D 4.70 Spreedly a cloud-based credit card vault that allows users to work with multiple payment gateways simultaneously.

6 HonkMobile (CA) Seed 2.26 Impression Ventures 2.26 HonkMobile enables drivers to pay for a parking spot with their mobile phones; credit card is automatically billed and a receipt is sent via email.

7 Olpays (UK) Seed 0.05 N/D 0.05 United Kingdom based Olpays offers a multiple device payment and collection platform.

8 Toast (US) Debt 2.95 N/D 2.95 Toast is a tablet POS app for restaurants, cafes, and other businesses in the food service and hospitality industry.

9 iZettle (SE) D 68.23 Intel Capital, Zouk Capital LLP, Creandum, Dawn Capital, Index Ventures, MCI Capital SA, Northzone

244.04 Swedish iZettle offers mobile payment solutions, with a range of portable POS and free sales overview tools.

10 Zwipe (NO) B 5.00 Photon Future 8.50 Norway based Zwipe offers a fingerprint reader for contactless payment cards.

11 Payfone (US) Debt 5.50 Relay Ventures 45.50 Payfone provides a secure mobile authentication solution.

12 Poynt (US) B 28.00 Oak HC/FT, Matrix Partners, Nyca Partners, The Stanford StartX Fund, Webb Investment Network

28.00 Poynt offers a payment terminal solution for merchants using a multitude of acceptance hardware, e.g tablets, PCs, and mobile phone.

13 Citrus Payments (IN) C 25.00 Ascent Capital, Sequoia Capital, Econtext Asia and Beenos Asia

32.30 Citrus Payments provides online and mobile payment solutions for merchants and consumers.

14 Wave Crest Group (UK) E 14.00 Vesuvius Ventures 32.93 Wave Crest Group offers a platform that enables the development, integration and operation of prepaid card programs.

15 Pin Payments (AU) A 3.10 Vix Investments 3.10 Pin Payments is provider of an API for accepting credit card payments online in multiple currencies.

16 WB21 (US) Seed 2.27 Gastauer Family Office 2.94 United States based WB21 enables cross border payments and account opening in 18 currencies.

17 SlimTrader (US) A 1.00 Interswitch Inc. 1.00 SlimTrader is a provider of a solution, that allows consumers to purchase goods and services with their mobile devices.

18 SoftPay Mobile (HK) A 1.00 Life.SREDA 1.00 Provides mobile POS solution, that enables businesses and individuals to accept credit cards, debit cards, loyalty cards, etc.

19 Cookies App (DE) Seed 1.60 Benedikt Lehnert, Chad Fowler, Dennis Bemmann, Ehssan Darini, HV Holtzbrinck ventures, Raffael Johnen, Steen Kiedel

1.60 German Cookies App is a provider of a P2P payments solution, that allows clients to send and receive money with their smartphones.

20 FinTecSystems (DE) Seed Heilemann Ventures FinTecSystems offers data analytics and customized solutions for banks, financial services and payment processors.

21 Zeepay (GH) Seed 0.20 N/D 0.20 Ghana based Zeepay provides a mobile wallet for the unbanked as well as banked population.

22 Align Commerce (US) A 12.50 Kleiner Perkins Caufield & Byers, Digital Currency Group, Fenway Summer LLC, Pantera Capital, Recruit Venture Partners

12.50 Enable businesses and payment platforms to send and receive payments in local currency using the blockchain.

23 CARD.com (US) C 9.00 Fenway Summer Ventures, Growth Capital Strategy 12.00 United Stated CARD.com provides a prepaid payment card with personalized graphics.

24 Peppermint Innovation (AU) N/D 2.70 N/D Peppermint Innovation offers a comprehensive mobile banking, payments and remittance platform.

25 Goodbox (IN) A 2.50 Nexus Venture Partners 2.70 Goodbox is a chat application that allow customers to buy goods directly from businesses.

26 iBox (IN) Seed 1.30 ESN Group, Inventure Partners 4.80 iBox is a provider of a mPOS solution, that enables debit and credit card payments through smart phones or tablets.

27 Prepaid Financial Services (UK)

N/D 3.80 N/D 3.80 Prepaid Financial Services is an e-money institution that specialises in prepaid card issuing, acquiring and providing alternative banking solutions.

venTure capiTal acTiviTy & company profiles Q4 2015

15

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Target (Country) Round Volume (USDm)

Investor(s) Funding (USDm)

Description

28 ScramCard (HK) Seed Stewart Milne Group Hong Kong based ScramCard is an card issuer of a secure unique card, that combines a wallet function with tokenization.

29 Tyro Payments (AU) Venture 72.00 Tiger Global Management, Mike Cannon-Brookes, TDM Asset Management

103.59 Tyro Paymenrs is an independent acquirer, offering an EFTPOS facility processing credit, debit, gift, loyalty and Medicare cards.

30 Bee (US) Venture 4.60 FundersGuild 4.60 Bee provides bank accounts, debit cards and financial services.

31 Keypair (KR) B 5.00 N/D 5.00 South Korean Keypair issues NFC enabled cards with an one time password authentication via smartphones.

32 Clip (MX) A 8.00 Alta Ventures Mexico, American Express Ventures, Angel Ventures, Mexico Ventures, Sierra Ventures

8.00 Clip is a provider of a mPOS solution.

33 Rippleshot (US) Seed 1.20 SixThirty - FinTech Accelerator 1.20 United States based Rippleshot offers credit and debit card fraud detection technology.

34 Purse.io (US) Seed 1.00 Digital Currency Group,TA Ventures 1.30 Purse.io offers a solution that enables bitcoins payments for customers.

35 Paynear (IN) Seed 2.50 Mitesh Majithia 2.50 Paynear is a payment solution provider, that enables individuals & businesses of all sizes to easily manage their card payments.

36 Curve (UK) Seed 2.00 Ed Wray, London Co-investment Fund, Ricky Knox, Seedcamp, Speedinvest, Taavet Hinrikus

2.00 Curve offers an all in one card, the enables customers to consolidate all existing cards and accounts in one card with just one PIN.

37 TabbedOut (US) C 2.00 Alterna Capital Partners 41.01 Tabbedout eases the consumer (mobile) payment process within bars or restaurants, enabling the user to view and pay his tab through a mobile app.

38 TransferGo (UK) Seed 2.50 Mark Ransford, Clive Kahn, Practica Capital, Richard Tudor, Voria Fattahi

2.50 TransferGo offers online money transfer to send money abroad for migrants and businesses.

39 Gastrofix (DE) A 4.00 Entree Capital 4.00 German Gastrofix is a provider of an iPad POS-system for restaurant and hotels.

40 DotDashPay (US) Debt 0.25 Pejman Mar Ventures 0.25 DotDashPay offers a hardware and software platform that enables merchants to analyze and control their entire payments.

41 PayJoy (US) Debt 1.00 N/D 3.30 PayJoy offers a solution that allows customers to pay up-front purchases with monthly installments.

42 Streami Inc (KR) Seed 2.00 Bluepoint Partners, iCB, Shinhan Bank, TIPS 2.00 Streami provides a remittance platform that uses the blockchain technology.

43 The PayPro (UK) Seed 0.45 Idodi Venture Capital, Angel Garcia, Carlos Blanco, Carlos Guerrero, Daniel Lacalle, Didac Lee, Lanta Capital Holdings, Marc Vidal, Mauricio Prieto, Tomas Diago

0.45 United Kingdom based The PayPro offers a payment platform for SMEs in 25 currencies in order to avoid banks charges.

44 DipJar (US) Seed 2.40 Bolt, Charge Ventures, Corazon Capital, Project 11 Ventures

2.82 DipJar provides both the hardware and software for paying tips by "dipping" your credit card in a device rather than paying cash.

45 MobiKwik (IN) B 6.60 Sequoia Capital,Tree Line Asia 36.85 MobiKwik is a mobile wallet app for Indian customers who use it for shopping, P2P money transfer and bill payments.

46 Ayannah (US) B 3.00 500 Startups, BEENEXT, Beenos Partners, Golden Gate Ventures, GREE Ventures, IMJ Investment Partners Pte. Ltd, Life.SREDA, Wavemaker Partners

7.50 Ayannah is a provider of online and mobile payment services aiming the unbanked in emerging markets and unbanked migrants in OECD countries.

47 Payable (US) Venture General Catalyst Partners 2.10 Payable offers contractors the ability to manage and analyse payments as well as having Onboarding, Work-Tracking analytics.

48 Nxt-ID (US) Debt 1.50 N/D 3.82 Nxt-ID is a provider of various biometric solutions for the mobile platforms, access control, and law enforcement facial recognition market.

16

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kai-chrisTian claus manaGInG paRtneR phone +49 40 41 30 36 13 mobile +49 163 413 13 63 [email protected] Hamburg office

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payments - EY-Innovalue · 2016. 12. 27. · payments Insight. Opinion. figure 2: Fintech start-ups by product category A major challenge for incumbents is their legacy systems. Many