It Was a Busy Quarter for Deals in Fintech

  • Banking and payments have reported the most deals in 2017
  • Barclays CEO said that payments space will be a battlegrond

Fintech’s still hot. 

Traditional Wall Street firms are keeping financial technology humming as they set their sights on developing technologies of their own. The third-quarter saw the second highest financing deal count ever, with 412 total transactions, according to a report from investment bank FT Partners

Still, some areas are hotter than others. Banking -- which includes peer-to-peer lending -- and payments reported the most deals in the period. The largest was Softbank Group Corp.’s $250 million investment in online lending startup Kabbage Inc. Payments startups Toast Inc. and Raise Marketplace Inc. were also in the top 10 deals with $101 million and $60 million investments, respectively.

Here’s a deeper looks at where the deals are happening so far this year.

The FT Partners report follows comments this weekend from Barclays Plc Chief Executive Officer Jes Staley, who said Wall Street will need to defend its position in payments from encroachment by companies like Inc. and Apple Inc., which have already made advancements.

There’s also Facebook Inc., which brought over PayPal Holdings Inc. President David Marcus in 2014 to head its Messenger platform, which allows payments and other financial services, including credit card alerts through partnerships with companies like American Express Co.

Staley suggested that payments could be the battleground in financial services over the next 15 years.

— With assistance by Stephen Morris

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