A quick look at some of the most noteworthy mergers and acquisitions in the fintech space for Q1 2025 reveals that companies are now actively seeking to simplify and modernise their offerings, focusing on niche solutions tailored for their clients. Notably, the banking and payments sectors witnessed the most activity in this quarter, with a focus on expanding in European and MENA markets. For instance, MENA region M&A activity rose by 3% in 2024, totalling 701 deals valued at USD 92.3 billion, with the GCC region accounting for the majority of these transactions. In contrast, M&A activity in the US experienced a slowdown in the fourth quarter of 2024, attributed to increased regulatory pressures and market uncertainties ahead of the elections.
Looking back at Q1 2024, we saw a similar trend when the fintech sector started its shift towards product and geographic expansion. Companies were focusing on domains such as digital identity, fraud prevention, and cryptocurrency to stay relevant. In this article, we will analyse the M&A of the fintech sector from the first quarter of 2025, exploring how these trends continue to influence the industry’s strategic direction.
Companies like Google, Kraken, and Stripe have spent billions of dollars to strengthen their portfolios, improve their cybersecurity capabilities, and expand their market presence. For example, Kraken acquired NinjaTrader for USD 1.5 billion, solidifying its presence in the US crypto market while advancing its multi-asset-class strategy. On the same note, Stripe re-entered the crypto space with the acquisition of Bridge, valued at USD 1.1 billion, intending to scale the capabilities of digital dollars and provide them to businesses worldwide. These deals were among the largest ones recorded within the cryptocurrency sector, underscoring the growing strategic importance of crypto-related assets.
In a separate but equally significant move, tech giant Google acquired Wiz for USD 32 billion to improve Google Cloud’s offering. By integrating Wiz, the company supports advancements in two accelerating AI trends: optimised cloud security and the ability to leverage multi-cloud. The acquisition stands as one of the largest in Google’s history, highlighting its commitment to cloud and security innovation.
Meanwhile, Amazon made an important acquisition of its own, purchasing BNPL startup Axio for USD 150 million. This move expands Amazon’s footprint in financial services, particularly in offering credit solutions to self-employed individuals and households on checkout on platforms such as Amazon and MakeMyTrip. The ecommerce giant had held a stake in Axio for six years, making this acquisition a natural step in deepening its financial services portfolio.
Similarly, Accenture purchased a digital twin technology platform developed by Singapore-based fintech company Percipient to improve its capabilities in modernising banking systems across the APAC region. The platform aims to assist financial institutions in upgrading their core systems.
Expanding on this trend of strategic financial acquisitions, J. Safra Sarasin purchased 70% of the shares of Saxo Bank for USD 1.1 billion. This allows the company to incorporate a digital trading infrastructure into its wealth management services, further expanding into digital investment and retail markets.
Thanks to technological advances and the rise of ecommerce, global expansion has become crucial for companies to stay competitive and grow their reach. By entering new markets, businesses can diversify their customer base, increase revenue potential, and leverage new opportunities for innovation and growth. For instance, Perfios, an India-based niche company specialising in B2B SaaS solutions, expanded its global footprint by acquiring Clari5, a banking financial crime management provider. This acquisition strengthens Perfios’ position in key regions such as the Middle East, North Africa, and Southeast Asia.
To facilitate rapid international expansion, companies often secure substantial funding. Israeli fintech platform Rapyd exemplifies this approach, having raised USD 500 million through equity to later acquire PayU for USD 610 million. This move aims to improve its global payments platform, supporting bank transfers, digital wallets, and cash payments in 100+ countries with financial permits in 41 nations. The deal significantly solidifies Rapyd's position in emerging markets across Latin America, Central and Eastern Europe, the Middle East, and Africa.
Europe is becoming the preferred space for expansion as its economy experienced a year marked by great stabilisation. With the continent adapting to new economic challenges rising from the Russia-Ukraine conflict, inflation rates became lower, enabling central banks to cut interest rates in 2024. In fact, last year saw the highest level of estimated M&A deal count in a decade, with a 29.9% YoY increase in value. Notably, the total value of European buyout deals exceeding USD 1 billion rose by 78% in 2024, amounting to USD 133 billion.
Following this trend, Fiserv, a provider of payments and financial services, acquired CCV, a payment solutions provider operating in the Netherlands, Belgium, and Germany. This move aims to accelerate the deployment of the Fiserv Clover platform and operating system across Europe and offer augmented capabilities to a combined merchant and partner base. Similarly, in January 2025, LemFi purchased Buttercrane mainly for its Irish licence, ensuring compliant expansion across the EEA area.
Furthermore, Viva.com acquired a majority stake in fiskaltrust, a fiscalisation compliance company, to improve its banking offering and launch a new solution that merges payments and fiscalisation. The service intends to scale users’ presence across multiple European countries and has until now commenced in Austria, Germany, Greece, Italy, Portugal, and Spain.
According to INS Global, Asia is expected to contribute approximately 60% of global growth by 2030, driven by its large consumer market, rapidly expanding middle class, and heightened demand for foreign products. This growth presents significant opportunities for companies aiming to broaden their global presence.
In line with this trend, Airwallex acquired a Vietnamese payment company, CTIN Pay, to accelerate its expansion in APAC. The acquisition will help Airwallex expand its existing licences across multiple APAC markets, including Australia, Singapore, Hong Kong, Malaysia, New Zealand, mainland China, and Japan.
Much like Asia, the MENA region is also attracting companies due to its large consumer market, strategic location, and business-friendly policies. In a move to strengthen its market position, PayTabs Group recently acquired a majority stake in PayTabs Egypt, aiming to offer tailored payment solutions to Egyptian merchants and support the country’s transition to a cashless society, aligning with regional efforts to promote financial inclusion and digital transformation.
Despite the North American M&A increase in 2024, with deal values rising by 8% to USD 1.7 trillion compared to 2023, data from Q1 2025 shows a preference towards European markets, potentially due to changing regulatory challenges, recent tariffs and trade barriers, workforce challenges, and high operational costs in the US.
In response to the economic uncertainties, companies started favouring stock-for-stock purchases, which can mitigate risks. For instance, US-based digital banking firm OakNorth used this method to purchase Community Unity Bank, aiming to further expand its US presence while catering to the increasing demand of American borrowers.
M&As this quarter focused on portfolio expansion, the growth of merchant networks, and granting acquirers greater autonomy compared to partnerships, which may require joint decision-making.
A notable example is Corsair Capital’s acquisition of German identity verification provider IDnow in a USD 295 million all-cash deal. This move aims to expand IDnow’s features and product range, supporting its further development. This, as well as Fiserv’s acquisition of CCV, signals a recovery in Germany’s M&A market, which has experienced a slowdown since 2021.
In a similar move, Marqeta acquired TransactPay to strengthen its exiting capabilities and platform in the UK and Europe. It aims to optimise its card programme management and digital payments capabilities while avoiding the added complexity associated with engaging multiple partners.
In the financial services sector, Santander acquired an 89.9% stake in Tresmares Capital, a platform specialising in alternative financing and private equity. Despite this transition, Tresmares Capital continues to operate independently with unchanged leadership. The acquisition aligns with Santander’s wider strategy to add alternative asset management to its offering and deepen its position in the private debt and fund-of-funds management sector.
Additionally, in the crypto space, MoonPay acquired Helio for USD 175 million to upgrade its portfolio by integrating the latter’s technology, team, and ecosystem, fostering advancement in decentralised finance and trading infrastructure.
In banking, acquisitions this quarter have played a key role in simplifying offerings, modernising capabilities, and enabling firms to specialise in areas such as Open Banking and Embedded Finance. These strategic moves can potentially result in improved customer experience and retention, cost-effective operations, new revenue streams, and regulatory benefits.
Montagu aimed for these results when it acquired Temenos’ fund administration software business, Multifonds, in a transaction valued at USD 400 million. The sale marked a strategic shift for Temenos as it allows the company to refine its core banking services and accelerate the development of adjacent point solutions.
Additionally, two deals were completed by FIS in Q1 2025, with the company acquiring Demica and Dragonfly. These acquisitions expanded FIS’s footprint in corporate financial services and digital banking, scaling its capabilities in payment technology and other services it delivers to banking and capital markets clients.
Embedded Finance also saw major developments, with three acquisitions aimed at optimising financial services integration. Fiserv acquired Payfare, incorporating its card programme management capabilities to strengthen its Embedded Finance portfolio. Additionally, UK-based ClearScore purchased Aro Finance as part of its strategy to grow its presence in this sector. Meanwhile, UniCredit acquired the whole share capital of Aion Bank and Vodeno for USD 405 million, aiming to re-enter the Polish market.
Open Banking expansion was another focal point this quarter. Neonomics, for example, strengthened its presence in this space by acquiring Ordo, a key player in the evolution of Open Banking in the UK. With this purchase, Neonomics expanded its product portfolio, reduced time to market, and further scaled offerings in Europe. Similarly, Intelligent Lending acquired TotallyMoney, a UK-based finance app, leveraging its Open Banking tools to assist customers in accessing better financial offers and solidify its position in the UK.
In Q1 2025, payments M&As were driven by the need to optimise portfolios, expand market reach, and strengthen industry presence. A notable example is South African fintech Stitch, which purchased ExiPAy to expand into in-person payments and improve its current services.
When it comes to B2B payments, a noteworthy move comes from iyzico, which acquired Paynet for USD 87 million to democratise financial services by improving its B2B and B2B2C capabilities, reinforcing its position in the digital payments landscape while broadening its service offering and market reach. Given the increasing demand for seamless cross-border transactions, this acquisition also supports the growing trend of embedded financial services in the region.
Additionally, companies also focus on acquisitions that upgrade their fraud prevention and risk management – key factors in maintaining customer trust, ensuring regulatory compliance, and reducing financial crime risks. One major move in this space was the acquisition of IDVerse by LexisNexis, integrating IDVerse’s technology into the RiskNarrative platform. This upgrade aims to provide more optimised and robust risk insights to better protect its customers.
Similarly, Prove acquired Portabl, a digital identity firm focused on reusable ID verification and interoperability. By integrating Portabl’s technology into its platform, Prove seeks to ensure better identity verification solutions. Additionally, to further strengthen its fraud and risk management capabilities, Perfios acquired Clari5, a firm that focuses on financial crime. These acquisitions reflect the increasing importance of fraud prevention in the payments ecosystem as companies strive to provide safer and more reliable financial services.
This quarter’s M&A activity reflects a focus on global expansion, portfolio diversification, and product modernisation, with companies leveraging acquisitions to strengthen their market presence and improve their offerings. Notably, European and MENA markets emerged as preferred expansion destinations, while sectors like Embedded Finance, Open Banking, and fraud prevention saw significant consolidation.
Looking ahead, M&A activity in the fintech sector is expected to keep prioritising geographic expansion, regulatory-driven acquisition, and technology-driven upgrades, particularly in cybersecurity and AI-driven financial solutions. With the resumption of growth in European economies, a rise in transactions is likely as businesses seek diversification and growth. Despite ongoing and evolving geopolitical tensions, businesses will remain focused on strengthening consumer trust, security, and financial accessibility.
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