Yapily acquires open banking payment platform finAPI

Acquisition signals further consolidation in European payments

by | May 10, 2022 | bobsguide

UK open banking payment platform Yapily has agreed to acquire German peer finAPI for an undisclosed sum from credit bureau, Schufa.

The acquisition will strengthen Yapily’s presence in the UK and Germany, while boosting its existing coverage of 16 European countries. The transaction will also expand the buyer’s geographic footprint into the Czech Republic, Slovakia, and Hungary.

“Within three years from launch, we have commercialised our platform, grown our customer base, and now, have the largest open banking payments volumes in Europe,” said Stefano Vaccino, founder, and CEO of Yapily.

“Working with finAPI, we can gain more speed, agility, and depth to accelerate innovation and shape the future of open finance in Europe and beyond.”

Yapily is projected to double its customer base following the acquisition, adding more names to its client roster, which includes American Express, Intuit, Quickbooks, Moneyfarm, Volt, Vivid and BUX at time of writing.

The acquisition of finAPI will add a customer portfolio of over 50 large enterprise firms in the finance, insurance, and IT industries, including ING, Datev, Swiss Life, ImmobilienScout24 and Finanzguru.
In the last 12 months, the two entities are said to have processed a combined total of $39.5 billion in payment volumes, servicing more than one million monthly active data users.

The consolidation will also enable Yapily to deliver finAPI solutions to the former’s existing clients, including identity and age verification, digital account checks for automated credit scoring, and legally compliant KYC checks.

The transaction is subject to regulatory approvals and expected to close in H2 2022.

Until completion, finAPI will function as an independent German entity. Its owner Schufa currently owns 75% of the company following its purchase in 2019.

Open payment platforms continue consolidation

Yapily’s acquisition signals an increasing interest in payment technology platforms as global industry players execute similar strategies to boost their market share.

On May 9, Canadian payment processor PSP Services acquired card-not-present payment solutions provider, PSiGate, to deliver online and mobile payment solutions to merchants.

Last month, UK mobile-based payments software provider MYPINPAD merged with Singaporean peer SmartPesa to operate under the MYPINPAD brand and expand into the North American market. The merger is also expected to double the combined entity’s existing presence in APAC, LATAM and EMEA.

A month prior, another UK payment technology provider PPRO had acquired Australian payment platform, Alpha Fintech, boosting its presence in Australia, Argentina, Singapore and the US.

Investors fund payment platform expansion

Beyond consolidation, payment technology providers have also been securing investments for growth, with Allied Market Research reporting that the global open banking market is expected to reach around $43 billion by 2026, registering a compound annual growth of 24.4percet from 2019 to 2026.

In April, French financial data aggregator, Budget Insight, secured $35 million in investment to scale up its business across Europe and the US from growth equity firm PSG equity.

In Egypt, payments technology group Paymob also attracted a consortium of investors led by Kora Capital, PayPal ventures and Claypoint to secure $50 million in Series B funding to fund its expansion across the Middle East and Africa region.