Evolv expands with its acquisition of EnzoPay

This acquisition aims to anchor Evolv's distribution network and position in the market, and improve its payment solutions, creating new opportunities for payment solutions and growth within the Mid-Atlantic region.

Details on Evolv’s EnzoPay acquisition

After three years of being an ISO for Evolv, EnzoPay took the next step and joined the company. With their rebranding and launch as Evolv Mid-Atlantic, the company aims to extend their reach in Virginia, DC, Maryland, and New Jersey.

Evolv Mid-Atlantic will also focus on software integrations, bank partnerships, and helping associations monetise their platform.

EnzoPay chose Evolv for its shared services model, which allows the company to focus exclusively on sales and partnership development. This success is tied to Evolv's optimised back-office support and access to platforms such as TSYS, Fiserv, and FIS.

Evolv chose EnzoPay for its proven track record and understanding of the payment landscape.

Merger and acquisition trends

In the world of payments, mergers and acquisitions (M&A), along with external funding rounds, have undergone a rapid shift that highlights a new phase of market movements that continued throughout 2024.

In the first part of 2024, the overall M&A transaction volume fell by 25%, continuing a downward trend that started in 2022. Global drops in M&A activity can largely be attributed to the tech sector, which saw a 51% reduction in M&A volumes YoY.

EDC’ M&A predictions for 2024 state that a wider scale of consolidation will occur across the payment ecosystem. Whilst this isn’t a new trend, EDC believes that it will take more of a focal point of M&A activity going into 2025. Established payment and fintech firms are looking to fill gaps in their product propositions by acquiring smaller companies with complementary capabilities. Ultimately, this often leads to cost savings that can be crucial in a tighter economic environment such as the one we are experiencing currently.

Another trend anticipated is the greater demand to make acquisitions in certain markets, such as emerging markets, which are witnessing profound rates of increasing digital penetration and financial accessibility that far offset wider economic headwinds. More established payment firms are looking to these markets as opportunities to make strategic acquisitions.

Companies are inclined to conduct tactical M&A activities that help alleviate regulatory pressures. One example of this is China’s Ant Group, which made an international acquisition to reduce the revenue impact of any future regulatory fluctuations and adjoin itself with better practices.