Published on November 18, 2016
1. Mobile wallet companies are one of the key targets for acquisitions in the fintech sector Analyst View Point Series
2. Table of Contents Market Context Key Insights
3. Market Context Global fintech industry has attracted huge investment in 2016 with revenue generation amounting to over USD 19 billion. In 2015, China topped the list in fintech investment followed by India. With this development, fintech companies have shifted their attention from traditional financial institutions to digital wallets and payment solution providers. This has been evident in emerging markets specially. Mobile payment segment has shown a steady development in recent times, posting annual average growth of over 30% across markets. Increased mobile usage pattern is fuelling the growth of fintech in emerging markets as well.
4. Key Insights There have been significant acquisitions across the globe owing to this trend. Samsung acquired LoopPay which is a mobile commerce payment service provider in 2015. Austrian DaoPay acquired “pay by call” business segment of Boku which is international mobile payment network operator and service provider in 2015. In emerging markets similar trend has been observed. Indian fintech segment witnessed 12 major acquisitions in 2016. One of the major events was acquisition of CitrusPay by PayU Payments in a USD 130 million deal which was largest in online payment sector. Other than that online payment gateway Emvantage Payments was acquired by Amazon India, payment app PhonePe by Flipkart, and interbank mobile payment platform Qarth by Ola. This reflects that growth in e-commerce and mobile commerce segment is also grabbing attention of major players in fintech segment.
5. Key Insights E-commerce platform Flipkart has also ventured into fintech arena with collaboration from Bajaj Finserv to facilitate e-commerce purchase loans. Seed stage total funding in India registered year on year growth of 12.5% reaching USD 27 million. Mobile payment and lending companies contributed significantly to the funding of this segment with USD 212 million and USD 199 million, respectively. Investment in fintech segment is predicted to reach USD 150 billion in next five years. Blockchain technology is going to propel the industry forward in coming years. Major funding is expected to come from mobile payment platforms and digital wallets.
6. To Know More To know more and gain deeper understanding of mobile payment industry, click here.