Exploring cross-border payments investments in Q3 2024
M&A activity reportedly saw significant declines in Q2, particularly among US-based payments companies. We take a look at key acquisitions, fundraisings and partnerships in cross-border payments for Q3 2024.
B2B has seen increasing attention since the start of Q3, notably with the international digital payment platform Antom’s acquisition of omnichannel payment platform MultiSafePay in July. After a 25-year partnership, the China-based Antom and MultiSafePay are focusing on integrating P2P e-wallets and buy now, pay later options for international SMEs.
Meanwhile, Flywire’s August acquisition of Invoiced will expand its B2B payments solution with an automated A/R system. The acquisition could enable a full-suite order-to-cash process, targeting worldwide finance departments.
The majority of acquisitions were small to mid-sized, with one notable exception: Mastercard’s $2.65bn acquisition of cybersecurity company Recorded Future in September, which Mastercard claims will add end-to-end cyber defence through Recorded Future’s AI-driven threat intelligence. Visa made a similar move with its acquisition of Featurespace, an AI-driven real-time payments protection company.
The investment landscape has faced multiple headwinds of late and acquisition has become a more common approach, allowing both sides to secure assets and manage risks in uncertain conditions.
Beyond acquisitions, several funding activities took place in Q3. PayPal Ventures made an additional, undisclosed investment in Chaos Labs, following its $55m Series A funding in August. Chaos Labs offers a platform for volatility simulation, parameter optimisation and liquidity management, which smooths cross-border transaction flows.
The account-to-account (A2A) space also gained momentum over the quarter. London-based A2A platform Form3 closed its $60m Series C extension, with support from British Patient Capital. The fundraising reflects an increasing focus on A2A infrastructure in the industry, as further seen in MENA-based open banking platform Tarabut’s acquisition of UK-based A2A payment provider Vyne, anticipating new complementary regulations in Saudi Arabia and the UAE.
As Q3 came to a close, companies signalled a drive towards efficiency, security and inclusivity in cross-border payments. The investments made in Q3 have built the foundation for innovative shifts in the months ahead.
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