Payments Market Overview

PaymentsM&Ahasgrowntorepresentover50%ofoverallFinTechM&Aactivity,increasingfrom17%inQ32021to59%inQ32023.Keydriversaretechnologicaladvancements,bigtechplayersenteringthemarketandahighlyfragmentedpaymentmarket Afteracontinueddeclineinpaymentfundingactivity,investorappetiteisstartingtopickupagaininQ32023with$9.5bnsofarvs.$3.8bninQ22023 Asinvestorsincreasinglyfocusonprofitability,later-stageinvestmentsaredominating Valuationsinthepaymentsectorhavecomedownsignificantlyamidrisingcostofcapitalandeconomicuncertainty,fuelingfurtherM&Aactivity Thetop10strategicandfinancialconsolidatorsinthepaymentindustryfocustheiracquisitionsonEuropeandtheUS.Keytargetsarepaymentprocessing,moneytransferandB2Bpaymentsolutions 2 Asthepaymentmarketcontinuestogrow,anever-largernumberofpaymentcompaniesarefuelingthenextwaveofconsolidation  