A record $117 billion in fintech deals have been done this year as cashless payments soar in popularity
It’s not just you. The fintech space really is red-hot this year.
Global fintech-targeted mergers and acquisition volume has increased “rapidly” over the last five years, and the value of deals in the space has hit a record high in 2019, according to Dealogic associate Chisa Tanaka.
Eighty-seven deals have totaled a record year-to-date value of $US116.6 billion, a four-fold increase from the $US31.8 billion through the same time last year. There were 89 deals done at this point in 2018.
“Clearly, technological innovation is causing intensifying consolidation in the electronic payment services market, while the acquisition of data on customer’s purchasing and behaviour trends further drives fintech acquisitions,” Tanaka wrote.
This explosive activity has been driven by three large US-based fintech transactions this year – Fidelity National Information Services’ $US43.3 billion acquisition of Worldpay in March, Fiserv’s buying First Data in January for $US39.4 billion, and Global Payments’ $US26.2 billion purchase of Total System Services in May.
Experts say that while methods of electronic payments are growing in popularity, the world is a long way away from becoming fully cash-free. And to be fair, cash usage varies by countries and regions. The BIS found ATM withdrawals were flat in advanced economies while rising in emerging markets.
Consumers around the world are relying “more and more” on e-payments, the Bank of International Settlements said in a report published last March.
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