Global fintech M&A deal volume showed steady growth during Q3 ‘24, with private equity-led M&A activity significantly contributing to the deal performance. Strategic acquisitions also saw an increase in deal numbers, with notable players such as MasterCard and Visa actively acquiring fintech companies during Q3 ‘24.

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General Commentary & Highlights

North American Fintech M&A Activity Sustains Steady Momentum in Q3 2024

• In Q3 ‘24, North America experienced a gradual increase in fintech M&A deal volumes, with growth in the low to mid-single digits compared to the same period last year.
• Global US-based private equity firms significantly contributed to this modest uptick.
  Investors in North America have focused on strategic, value-driven deals this quarter.

Europe’s Fintech M&A Activity Rebounds After a Slow Summer Period

• Europe’s fintech sector saw a surge in M&A activity during the final month of Q3 ‘24.
• The UK market retained its leadership position in European fintech M&A in Q3 ‘24.
  Although deal activity saw a slight increase in Q3 2024 compared to the same period last year, overall funding has declined, reflecting a shift toward smaller, strategic investments.

APAC Fintech M&A Activity Slows in Q3 2024

• The APAC fintech sector saw a notable decline in M&A activity at the end of Q3 2024, though overall, Q3 ‘24 outperformed the same period last year.
• Despite the downturn, some areas within the APAC fintech sector demonstrated resilience.
• While a swift recovery is unlikely, opportunities for deal-making remain in a few categories.
  

LATAM and MEA Regions Facing a Subdued Fintech M&A Environment in Q3 2024

• The LATAM fintech landscape experienced a modest surge in M&A activity during mid-Q3 2024, primarily driven by strategic acquisitions aimed at consolidating market positions.
• In contrast, the MEA region saw more subdued fintech M&A activity in Q3 2024, marked by targeted strategic investments rather than large-scale mergers and acquisitions.
  

   

Global Fintech M&A Witnesses Moderate Growth in Deal Count in Q3 2024

• In September 2024, Visa announced its agreement to acquire Featurespace, a UK-based fintech specializing in real-time AI technology for payment protection.
• This strategic move aims to enhance Visa’s fraud detection and risk-scoring capabilities.
• Featurespace’s AI solutions will complement Visa’s existing products and position Visa to offer more robust value-added services to banks, fintechs, and payment service providers.
  The acquisition is expected to close in 2025, subject to regulatory approvals.

Please do not hesitate to contact Yuriy Kostenko at Yuriy@FlagshipAP.com with comments or questions.