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 PAYMENTS Insight. 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
18
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Transcript
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
payments Insight. Opinion.
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
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payments Insight. Opinion.
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
payments Insight. Opinion.
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
payments Insight. Opinion.
INNOVALUE White Paper
In the white paper "Merchant payment acceptance
and mobile services: A reality check at large mer-
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
payments Insight. Opinion.
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
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.
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
page 1
payments Insight. Opinion.
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.
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.
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.
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