Payments Market Overview

Payments M&A has grown to represent over 50% of overall FinTech M&A activity,increasing from 17% in Q3 2021 to 59% in Q3 2023. Key drivers are technologicaladvancements, big tech players entering the market and a highly fragmented paymentmarket After a continued decline in payment funding activity, investor appetite is starting topick up again in Q3 2023 with $9.5bn so far vs. $3.8bn in Q2 2023 As investors increasingly focus on profitability, later-stage investments aredominating Valuations in the payment sector have come down significantly amid rising cost ofcapital and economic uncertainty, fueling further M&A activity The top 10 strategic and financial consolidators in the payment industry focus theiracquisitions on Europe and the US. Key targets are payment processing, moneytransfer and B2B payment solutions As the payment market continues to grow, an ever-larger number of paymentcompanies are fueling the next wave of consolidation ▪▪