Filippo Burello

Is a merger the only way for #Europe to create a local #payments champion to compete with US rivals? And does it even make sense? Let’s take a look. Enter French-origin Worldline and Italian-origin Nexi, Europe’s biggest payment players: -   Nexi has a market capitalization of EUR 6.45bn, 2.9mn merchants and 10,600 employees. -   Worldline has a market capitalization of EUR 1.95bn, 1.45mn merchants and18,000 employees. Consider the following though: -   Nexi’s market cap is around 40% down vs its all-time high in 2021 and -25% only the last year. -   Worldline’s market cap is 90% down vs its all-time high, again in 2021, and -30% only the last year. But why are the two companies not performing? 1. The fragmented nature of their core European markets is a challenge to navigate. 2.   Disruption from FinTechs (i.e. Stripe, Adyen) and BigTechs (i.e. Apple). 3.   Macroeconomic (i.e. inflation, interest rates) and regulatory risks. 4.   Slowed post-pandemic growth. 5.   Challenges with their technical infrastructure (integrations from M&A, legacy, slow-moving). 6.   Poor financial results as a result of the above. A potential merger has been long rumoured, but the situation faces many hurdles: 1.   There are fears for many layoffs. Worldline is particularly vulnerable. 2.   Both the French and the Italian state have stakes and a say in a potential deal. Politics make things more complex. 3.   Regulatory approval might face challenges due to the number of countries involved. 4.   Merging technology and systems might end up in a nightmare, slowing down the unified entity vis-à-vis competition.   5.   Europe’s market fragmentation (language, tax, consumer preferences) complicate standardization and a unified strategy. On the other hand, the geographic combination seems to be a good match: Nexi is strong in Southern Europe, whereas Worldline’s footprint is in France, Germany, and Benelux. The combination would create a strong unified network across 25+ countries. However, even in case a merger would go through, the market reality is challenging: PayPal has a valuation of $68 bn, Visa of 670bn and Mastercard of $502 bn, which means that even a combined Nexi-Worldline entity would be still a drop in the ocean. Whatever the outcome one thing is certain: competition will not be waiting. Just a few days ago PayPal and JP Morgan Payments announced the expansion of their strategic relationship. In Europe. JP Morgan will offer Fastlane by PayPal for its merchant clients in the UK and Europe and PayPal will expand merchant acquiring to businesses across the UK and Europe via JP Morgan Payments’ Commerce Platform. These are exactly the type of US players that a potential merger aims to rival… Opinions: my own, Graphic sources: P. Kriaris, Nexi, Worldline 𝐒𝐮𝐛𝐬𝐜𝐫𝐢𝐛𝐞 𝐭𝐨 𝐦𝐲 𝐧𝐞𝐰𝐬𝐥𝐞𝐭𝐭𝐞𝐫: https://lnkd.in/dkqhnxdg

198

37 commenti

Major international bank coming to South Africa UK ‘neobank’ Revolut has announced that it will apply for a banking license in South Africa and is busy engaging with the Reserve Bank’s Prudential Authority to enter into the local financial sector. Revolut, with more than 65 million customers worldwide, will be a formidable competitor to South Africa’s traditional banks and newer digital banks. Daily Investor https://lnkd.in/dhDbchX4

94

3 commenti

𝑹𝒚𝒂𝒏𝒂𝒊𝒓 𝑰𝒔 𝑸𝒖𝒊𝒆𝒕𝒍𝒚 𝑾𝒊𝒏𝒏𝒊𝒏𝒈 𝒕𝒉𝒆 𝑭𝑿 𝑮𝒂𝒎𝒆 ✈️ Ryanair - Europe's Favourite Airline just introduced “Pay by Bank” and it is a smart move that many merchants should be watching closely. ✅ No cards involved ✅ 5 percent cashback for users ✅ Instant bank payments ✅ Powered by open banking with TrueLayer But here is the part most people will miss: this is also a foreign exchange play. By shifting away from card networks and moving directly to bank transfers, Ryanair is not just saving on interchange fees. They are also gaining control over FX conversion and unlocking significant hidden margin. This is exactly what modern cross-border merchants should be doing. 💰 Minimize FX leakage 🌍 Own the customer journey across currencies 📈 Boost conversion through tailored incentives Most businesses are still focused on optimizing front-end UX. Meanwhile, Ryanair is upgrading its financial infrastructure to drive profitability at the core. If your business handles international flows, ask yourself: - Who controls the FX rates your customers get - Who earns the spread - And what would it look like if you owned that layer This is not just a new payment method. It is a strategic decision that will impact the bottom line. Smart merchants will follow. #Ryanair #PayByBank #FXStrategy #OpenBanking #CrossBorder #EmbeddedFinance #Profitability #GrainFinance #Fintech #Payments

117

6 commenti

Switzerland remains a clear frontrunner in the adoption of digital payments in Central Europe 🇨🇭   A large majority of people in our country increasingly prefer digital payments, with mobile devices climbing to become the second most popular payment method at the point of sale, right behind the debit card. This is shown by the results from the latest Visa Payment Monitor. Additionally, Swiss people are leading the way in sending money via apps, although there is still untapped potentials for the industry.   If you want to learn more, including the role of Asian online marketplaces and social commerce from a Swiss consumer perspective, browse through the slideshow or see here: https://lnkd.in/dCuaXJSE   #VisaPaymentMonitor #Switzerland #DigitalPayments #MobilePayments #SocialCommerce

146

Market Pay, the acquirer spun out of Carrefour, has bought AltaPay, a Copenhagen based PSP. Altapay made just €0.3m EBITDA in 2023 and had not shown much growth in recent years blaming macroeconomic conditions and a "cleanse" of its merchant base. Altapay is an ISO for Elavon Europe and manages >€3bn volume from 400 merchants trading in-store and online. This is a good move from Market Pay. The French group gains a springboard into Denmark including a partnership with Danske Bank as well as integrations to Microsoft's in-store software.

54

3 commenti

🌍 How to choose the right Payment orchestrator – key factors merchants overlook when scaling globally. Last year, a leading European retailer launched in Brazil. They had the right products, the right marketing, and… the wrong payment orchestrator. They didn’t support PIX from the get-go – Brazil’s number 1 payment method. Result? 15% of sales were lost in the first quarter (the customers dropped when they didn’t see their preferred payment method in the retailer’s checkout), which meant several million BRL in non-completed sales! In 2025, choosing a payment orchestrator isn’t just a “back-end decision.” It’s a growth lever – one that can boost approval rates and cut payment failures. Get it wrong, and you’ll bleed revenue in every new market you enter. Here are some of the key overlooked factors that make or break global payment expansion: 💸 Local payment winners In Brazil, PIX and Boleto. In Spain, Bizum, BLIK in Poland, and iDeal in the Netherlands. But also multiple APMs/LPMs per country in some cases - several e-wallets, Bank transfers and various types of APMs/LPMs in countries all over Asia: Indonesia, Vietnam, Thailand, etc. If your orchestrator can’t handle them on day one, you’re leaving money on the table. 🧑‍💻 Hands-on integration support Some platforms throw you a manual. The best ones give you a dedicated integration team, SDKs, and proactive help so you go live faster and with fewer costly mistakes. ⚙️ Custom checkout flows A German shopper and an Indonesian shopper do not expect the same journey. Your orchestrator should let you adapt flows, UI, and logic per region without breaking everything else. 🛡️ Built-in fraud prevention Dynamic 3DS, risk scoring, chargeback prevention – not as add-ons, but baked into the core. Security and approvals should go up together. 🔁 Smart routing Every transaction should find its best route based on card type, location, or past performance. That’s how you raise approval rates and cut fees – automatically. There are companies doing this well – Tranzzo is one I’ve seen that covers these bases with 180+ local and global payment methods, 30+ smart routing rules, and strong integration teams. Their platform also supports White Label PSP and SaaS Payment Gateway solutions for payment providers – enabling PSPs to launch their own branded gateways without building from scratch. Global scale is only as strong as your payment stack. When expanding, make sure your orchestrator can grow with you – not hold you back. Please see a summary Infrographic below. Any other key criteria we missed? Share your comments! Sofiia B. Rita Ochigava #Payments #PaymentOrchestration #PaymentSolutions #GlobalPayments

122

84 commenti