FinTech Wednesdays - Edition#8
Givex acquires Counter Solutions to add complementary products | Remitly acquires Rewire to accelerate progress | Razorpay will acquire Ezetap to add offline payment -FinTech acquisitions on the rise
As the digital ecosystem keeps transforming the global financial landscape, collaborations and partnerships have emerged, leading to a considerable rise in mergers and acquisitions (M&A).
Following are some of the reasons for this rise:
M&A is a more affordable option - Larger companies are merging with smaller technology entities to scale and upgrade their tech instead of investing in building new tech.
Increase in FinTech funding - Increased funding in the fintech space is also enabling mid-sized companies to snap up innovative startups that are shaking up the marketplace with their disruptive solutions.
Marketplace Volatility - Companies would rather merge than invest in new technologies. It helps them to scale and grow, resulting in greater resilience – especially if there is uncertainty.
Reduce Competition - Neobanks, Buy Now Pay Later Providers, Challenger banks are acquiring each other to reduce competition from larger institutions and each other as they offer primarily the same services
With some predicting that brick-and-mortar banks will be owned by FinTechs in the future as a way to acquire customers, it would be interesting to see at what speed FinTechs will take over traditional methods as the speed at which FinTechs conquer various financial services is proportional to the increase in laws and regulations laid out for them.
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#1 - Complementary Products and services in Retail Functionality have led to the acquisition of Counter Solutions by Givex
Givex is a global fintech company providing merchants with customer engagement, point of sale, and payment solutions, all in a single platform. Counter Solutions creates connected digital experiences for the retail & hospitality sectors, helping brands implement self-service technology solutions to improve their customer experience. Givex was attracted to Counter Solutions' WAY2PAY self-service & smart-refrigeration platform, which allows customers to unlock refrigerators by preauthorizing a debit or credit card on a pin pad, and select, scan and pay for their items themselves. Now, with the support of Givex's end-to-end technology platform and deep team, Counter Solutions can seamlessly offer Givex products, like GivexPOS, online ordering, kitchen display system (KDS) and more, to its roster of enterprise clients without having to create partnerships with various external partners.
KNOW MORE about how Givex and Counter Solutions compliment each other
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#2 - Remitly acquiring Rewire will accelerate mutual growth and progress
Remitly Global, a global digital financial services provider for immigrants and their families is acquiring Rewire, an Israeli fintech startup that has developed an international platform for financial services for migrant workers through an application offered in eight languages. Hundreds of thousands of migrant workers in Europe and Israel use Rewire’s app to perform a variety of financial operations.
“From the start, Remitly has focused on delivering trusted digital financial services to serve immigrant communities around the world. We share with Rewire a deep commitment to our customers and that mission. Peace of mind starts with a trusted means for sending money home for critical costs. Rewire accelerates our progress as together we will continue to bring to market trusted financial services that are inclusive and accessible to all.” - Matt Oppenheimer, Co-Founder and CEO, Remitly.
KNOW MORE about the acquisition details of Remitly and Rewire
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#3 - Razorpay forays into offline payment solutions with its acquisition of Ezetap
Business-to-business (B2B) digital payments and neo banking platform Razorpay has made an offline foray with the acquisition of Bengaluru-based point-of-sale (POS) machines provider Ezetap, as competition intensifies in the offline payments space. Ezetap caters to several large enterprises in India including BigBasket, Reliance, Indian Oil Corporation and Bharti Airtel and the competition is heating up in both the offline PoS as well as payment gateway space. The space is seeing a growth in contactless payments, Unified Payments Interface (UPI) transactions, and also sound devices that announce receipt of payments to merchants for QR code-based transactions.
“The company is keen on expanding its product offerings by exploring acquisitions in various segments.” - Razorpay CEO and co-founder Harshil Mathur
KNOW MORE about how Razorpay plans to expand its offerings with various acquisitions
FINTECH quote of the week:
“At the end of the day, customer-centric fin-tech solutions are going to win.”
– Giles Sutherland
What is the latest in FinTech that excites you? I would love to know!