Boston, MA – Capstone Headwaters released its Financial Technology (FinTech) & Payments Update today, reporting that deal volume and financings across the Financial Technology (FinTech) & Payments industry decreased 20% year-over-year (YOY) but increased 11% on a quarter-over-quarter basis. Of the 152 transactions in Q3, ~40% (61 deals) were payments-related with the following break-down: online payments (26%), integrated payments (18%), payment processing (16%), mobile (10%), gateway/point of sale (10%), and blockchain (8%).
“FinTech cuts across a broad spectrum of applications and end-use cases, ranging from Insurance, Capital Markets, Asset Management and Brokerage to Banking,” said David Francione, Managing Director and Head of Fintech & Payments for Capstone. “The level of interest in automating the movement of funds domestically and internationally—whether for business or consumer bill payments, funding loans or purchases of goods or stocks, collections or to settle claims payments—has been accelerated by the coronavirus pandemic. This paradigm shift is promoting not only the FinTech’s ease of use, but also its greater access to various electronic means of payment around the world.”
Moving forward, we see significant opportunities for the Payments segment to continue evolving as it adds new revenue streams focused on the customer’s experience, risk management, cross-border capabilities, business-to-business (B2B) efficiencies, and e-commerce, and mobile capabilities.
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Capstone Headwaters is one of the largest and most active independent investment banking firms in the United States. The firm has a rich 15+ year history of achieving extraordinary results for middle market entrepreneurs, business owners, investors, and creditors. Capstone offers a fully integrated suite of corporate finance services, including merger & acquisition, debt & equity placement, corporate restructuring, valuation & fairness opinion, financial advisory, and ESOP advisory services. Headquartered in Boston, the firm has 150+ professionals across 16 offices in the U.S., with and an international presence including over 450 professionals in 40 countries. With 16 dedicated industry groups, the firm delivers sector-specific expertise through large, cross-functional teams on a global basis. Capstone has been named “U.S. Middle Market Investment Bank of the Year” for the past 9 consecutive years and is consistently recognized as one of the top investment banking firms to work for. For more information, visit www.capstoneheadwaters.com.
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