A wave of new merger and acquisition (M&A) deals is transforming the payments landscape, as some companies indicate a willingness to be bought and others bid controversially for strategic partnerships. The broad payments firm merger and acquisition trend is taking place against a backdrop of declining valuations, waning investor interest, and a wider shift in the fintech and payments space towards profitability and scale.
From smaller fintech firms undertaking strategic reviews to billion-dollar companies launching cross-border acquisitions, market participants are reassessing their positions in a fast-changing environment. The current economic climate — characterized by strategic investment activity, increasing interest rates, and tighter funding environments — is pushing companies to view M&A not merely as a growth strategy but perhaps a path to survival, analysts say.
Strategic Reviews Provide Pathway for Buyouts
Over the last few months, several public companies in the payments ecosystem have announced they’re considering strategic options. Such announcements often act as signals to indicate that firms are open to the idea of a sale, restructuring or a merger.
One example is Green Dot Corporation, a bank holding and financial technology company based in the United States. Law firm Reed Smith, which announced in March that it had started a strategic review process, raised hopes that a potential buyer or restructuring plan could be on the cards. Although the company has not confirmed the nature of any individual transactions, the announcement fits with wider industry trends.
Similarly, Flywire, which focuses on cross-border payments for sectors such as healthcare and education, has also entered a similar appraisal process. Those changes are widely seen by industry insiders as a direct reaction to lackluster stock performance and mounting pressure from investors looking for better returns.
Cantaloupe, a cashless payment and software solutions provider for self-service retail, is another company going public but paying particular attention to its strategic direction going forward. It has seen slow growth and a struggle to hold onto its valuation in the public market, potentially making it a target for acquisition by private equity firms or strategic purchasers that want an entry into the vending and kiosk segments.
A Wave of Deal-Making Across the Sector
Meanwhile, other companies in the industry are choosing to grow via acquisitions. Shift4 Payments, which provides cloud-based payment solutions, said it would buy Global Blue, a Switzerland-based company that offers tax-free shopping services. The transaction is viewed as a strategic move into the European market and a means to add a complementary value-added service to Shift4’s product suite.
Another big name in financial services that made news was American Express, with news of its purchase of an expense management platform named Center. The move underscores Amex’s push to strengthen its corporate payments division and broaden out its business management tools.
Interestingly, Flywire, a potential acquisition target in its own right, just closed a $330 million acquisition of Sertifi, a company that offers digital contract and payment solutions for the hospitality industry. That duality — acting as both a buyer and a potential acquisition target — highlights the multi-tiered approaches that many fintech companies are taking.
Recent other deals include Marqeta’s purchase of TransactPay, a European card issuer and payment platform, and Nuvei’s acquisition of Paywiser Japan, which will expand the reach of the Canadian company into Asia.
Signs of Life in the Global Payments Firm Merger and Acquisition Market
Despite remaining under 2021’s record highs, fintech-focused global M&A activity is demonstrating signs of rebounding. The total dollar value of deals completed so far in 2025 is 12 percent higher than the level achieved in the same quarter last year, according to industry data. Deal volume is small, but increasing, with analysts predicting an acceleration for the rest of the year. It’s a clear sign of life in the global fintech and M&A market.
This trend is driven by a recalibration of market expectations. The exuberance that drove the fintech boom during the pandemic has chilled. Gone are the days when sky-high valuations were the call of the day; now companies are evaluated in more traditional terms: revenue growth, profitability, and operational efficiency.
The Strawhecker Group (TSG), a leading payments industry advisory firm, said there is more activity on both sides of the buy/sell equation. Sam Wares, a senior director at the TSG, said that right now his team is consulting with several firms on transactions, most of which are set to close before midyear.
“Valuations are coming down to what we would think is a more reasonable level and both strategic buyers and private equity firms are finding things that were priced a year or two ago were too high,” said Wares.
Investor Sentiment Behind Strategy Changes
So the rapid change in investor expectations is a key part of the new wave of consolidation. Payments and fintech firms saw outsized demand during the pandemic, leading to outsized growth projections and outsized funding rounds. But as inflation, interest rate increases and geopolitical turbulence dimmed the economic outlook, investors started tempering expectations.
Nowadays the primary focus is on profitability and long-term sustainability. More than a few fintechs that raised big rounds in 2020 and 2021 now face the end of their cash runway without a clear path to profitability. For such companies, a strategic sale or merger might indeed be their best option.
Papaya Global’s chief executive, Eynat Guez, recently expressed this sentiment, saying many startups have become more realistic about their valuations and more willing to consider joining forces. Buyers, too, are rewarding selectivity, looking for deals that produce immediate operational or strategic value.
Many private equity investors, who had hit the pause button during the height of uncertainty in the market, are returning to the payments space. Valuations have come down and clearer paths to profitability have made the industry attractive again.
Analysts predict that private equity in the payments space will continue to ramp, particularly segments such as B2B payments or embedded finance that have a mix of recurring revenues and specialized services that provide durable tissue upside, as well as vertical SaaS platforms that automate payment processes.
M & A Is a Survival Strategy, Not Just a Growth Play
Traditionally, M&A was viewed as a means for accelerating growth or gaining access to a new market, but that calculus has changed. For many mid-sized fintechs, the only path now to achieving economies of scale, lowering their cost base or gaining new capital or capabilities may be consolidation.
This new reality is flipping the M&A landscape from a seller’s market to one that favors buyers. Sellers are more flexible, more open to realistic valuations, and more interested in finding the appropriate strategic fit than in waiting for inflated price tags.
Conclusion
As 2025 progresses, it seems likely that the payments industry will continue its path of consolidation. There is a structural change underway in the sector, whether through acquisitions by global giants, private equity buyouts or mergers between medium-sized players.
Companies are being forced to rethink their strategies as economic uncertainty, shifting customer needs and a drive for profits take hold. In this environment, M&A is not merely a growth tool — it has emerged as a vital lever of resilience, relevance and long-term viability.
The transformation of the payments industry from consolidation is only beginning, with market dynamics favoring realistic valuations and disciplined deal-making decisions.
