Infographic: Q3 ’23 Fintech Stock Price Movements
General Commentary & Highlights Q3 earnings season brought heavy volatility to payments stocks Share price increases or decreases of +/- 20% were common as shown above Technology investors are now hyper-sensitive to earnings misses, even small misses (-5% vs. expectation) seem to drive c. -20% impacts to share price Substantially negative guidance, such as that […]
Impact of Proposed Revision to Debit Card Interchange Fee Cap on U.S. Banks
General Commentary & Highlights In 2011, The Federal Reserve implemented the Durbin Amendment which capped debit card interchange for U.S. financial institutions with over $10 billion in assets at $0.21 + 0.05%, plus a $0.01 fraud prevention fee for eligible transactions. The Fed had not altered this cap since implementation. Last month, The Fed proposed […]
Square’s International Expansion
General Commentary & Highlights While Block works to fix its corporate challenges including a recently announced and much-needed expense reduction program, Square continues to demonstrate steady (though not spectacular) progress in the organic international expansion of its core merchant products, which achieved $380M of annualized gross profit in the most recent quarter. Square becoming more […]
SaaS Embedded Payments Accelerating in Europe
Video Summary Introduction The evolution of SaaS embedded payments is the preeminent theme in merchant payments in North America and is also now increasingly in Europe. The U.S. market remains the clear bellwether of SaaS + payments disruption, but the U.K. and Europe are fast followers as the shift towards integrated payments gathers speed. ISVs/SaaS […]
Small Cap Fintechs Struggling in Public Equity Markets
It continues to be a rough ride for virtually all listed fintechs, large and small, although small cap fintech stocks are particularly challenged in today’s tough (and worsening) market conditions. In Figure 1, we compare the relative share price performance of large cap fintechs (market cap >$10B) vs. small cap fintechs (market cap < $2B). […]
FedNow: Game Changer for U.S. Consumer Payments?
Introduction The U.S. has the highest payment acceptance costs in the world despite being a large and mature fintech market (you can read our prior assessment of this topic here). This situation is ripe for disruption, the question is just when and how. Real-time A2A payments would appear to be the ‘disruption how’ given the […]
Enfuce In The Hot Seat Podcast: Compliance Done Right
Erik Howell, Partner at Flagship Advisory Partners recently joined Don Riddick, Company Secretary and Chief Legal Officer for Featurespace on Enfuce’s latest episode of their In The Hot Seat podcast. Hosted by Denise Johansson, co-founder and co-CEO of Enfuce, the episode emphasizes the critical role compliance and transparency play in the financial […]
The Paypers Embedded Finance and Banking-as-a-Service Report, 2023
The inaugural edition of The Paypers’ Embedded Finance and Banking-as-a-Service Report 2023 covers essential business models and key players in the Embedded Finance and BaaS ecosystem. It also highlights the latest trends, technologies, and real-world examples illustrating how Embedded Finance is revolutionizing various industries. Download the full Embedded Finance and Banking-as-a-Service Report 2023 at The […]
Reactions to the 2023 U.S. Credit Card Competition Act
The proposed (but not yet voted on) U.S. Credit Card Competition Act of 2023 continues to make headlines, most recently on the back of The Wall Street Journal’s report that Visa and Mastercard will raise card fees in October 2023 and April 2024 and Congress’ visceral reaction to the news. According to Senator Dick Durbin’s […]
Infographic: Lessons Learned from Adyen and DLocal Share Performance
General Commentary & Highlights: The recent public equity experiences of Adyen and dLocal highlight the increased importance of investor relations and communications in fintech. The share prices of both companies have fallen sharply from their peaks (-75% for Adyen and -70% for dLocal as of today). Part of this fall is consistent with the entire […]