Market Map: Fintech Payments Startups Holding Up in Uncertain Times

To dig deeper, read our Fintech Q2 2022 report. PitchBook subscribers can also explore the full fintech market map with details on nearly 1,200 companies.

Spotlight: Payments

Payments companies are divided into five sub-segments:

  • Payments for business products and services: Services that facilitate business-to-business payments, wire transfers, and alternative forms of checks and cash.
  • Cross Border and FX: Businesses that focus on cross-border transactions, including currency exchange services.
  • P2P and discount: Services that facilitate peer-to-peer transactions such as remittances and other non-commercial money transfers.
  • Payment platforms and POS: Payment acceptance services such as payment processing software and APIs, among others.
  • Payroll automation and AP/AR: Technologies and software that help corporate finance teams and accountants manage cash flow.

What is the trend of offers and releases

There were 1,103 fintech venture deals worth $24.1 billion in the second quarter of 2022, representing a 17.8% decline in deal value quarter over quarter. other, the largest such decline since the third quarter of 2018. The number of transactions also fell by 24.4% compared to Q1 to Q2 2022.

The payments segment, which accounts for the largest share of deal value among fintech startups, raised $7.6 billion in Q2 2022, down 18.7% from $9.3 billion. first quarter dollars.

Despite the slowdown, there were a few notable deals in the quarter, including a $748.3 million Series C for expense management specialist Ramp, $626.6 million for software and point-of-sale hardware SumUp and $524 million for API-based payments company Scalapay.

Exit activity is down significantly from 2021, largely due to the IPO market shutdown. There were 157 outflows worth $21 billion in the first half of the year, a far cry from the pace needed to match last year’s total of $369.7 billion.

Notable exits include an $8.5 billion public listing for credit technology developer Pagaya and an $1.1 billion acquisition of Australian stock trading app Superhero.

Venture capital outflows in 2022 are expected to shift from mostly public listings to mergers and acquisitions as established fintech companies seek to acquire other fintech specialists, said PitchBook analyst Robert Le.

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