M&A activity in the payments landscape slows down as we close out the year and prepare for 2023. While no new acquisitions were publicized, J.P. Morgan announced last week they have closed on their 48.5% ownership stake in Viva Wallet, a European mobile payments platform and fintech provider. This agreement, initially announced in January, largely supports J.P. Morgan’s commitment to expand their acquiring business across the European region.
As 2022 comes to a close, a few industry trends emerged around M&A activity that occurred throughout the year. Most noticeably, M&A deal count did not surpass prior years and amounted to 113 as opposed to 132 last year. This was likely due in part from a variety of reasons, including global economic conditions, rising interest rates, and businesses taking less risks. In addition, a growing trend that continued to take place this year was the shift toward acquiring ISVs as a means to grow and expand into market verticals. ISVs are remaining top of mind for many acquirers as they seek to grow their merchant portfolios. Lastly, significant M&A activity occurring throughout 2023 is largely uncertain. While there is a lot of cash on hand for many firms, outside factors may continue to affect buyers’ willingness to spend and take market risks.
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