, Columnist
A Hangover Cure in Fintech M&A
An over-exuberant takeover boom in the payments industry is a boon for private equity.
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Private equity has ordered a fresh round of drinks at the fintech party. Francisco Capital's purchase of electronic payments specialist VeriFone Systems Inc. helped to lift shares of French rival Ingenico Group SA on Tuesday amid speculation more deals will follow. All this looks more like a hangover cure than a new spin on the dance floor.
While the underlying story of electronic payments is one of growth, as the use of cash declines and online spending booms, some of the biggest players are starting to run out of steam. VeriFone and Ingenico dominate in payment terminals, an increasingly saturated market, while a new breed of more mobile focused start-ups such as Square is gaining ground.