In another PYMNTS first, we’re going to be reporting investments in retail and commercial payments companies and in particular who’s getting funding, from whom, and how much; and who’s getting acquired, by whom, and how much. There’s nothing out there like this. Every week we’re going to consolidate a number of reports on the financial doings of the sectors that are innovating and reinventing right before our very eyes.
Here’s what happened in the month of June:
The Big Takeaways for Payments and Commerce
- $6.37 Billion in financial activity was observed across a variety of investment types – VC funding, private placements, etc. Of that total, $2.1 billion was the driven by strategic or venture –backed investments; $4.4 Billion was attributed to 2 big transactions – an acquisition by Santander in Europe ($952 Million for GE Capital’s Consumer Finance Group in the Netherlands) and investments into First Data by KKR ($1.2 Billion ) and private investors ($2.3 Billion) in the US.
- Perhaps not surprisingly, as a result of that activity, 96 percent of the month’s activity was concentrated on the retail payments side. The bulk of the activity overall was therefore, concentrated in the alt.banking/credit/payments on the retail payments side (80 percent). Travel/spend management drove the investments on the commercial payments side (54 percent).
- Venture backed and strategic investments on the retail payments side accounted for ~$1.5 Billion of the total investment activity in June. Of that, nearly as much was considered strategic investments and not tied to a capital raise ($492 Million) than Series A and B capital raises combined ($523 Million).
- Interestingly, most of the venture and strategic backed investments were in the data analytics and security areas accounting for 58 percent of the total. Mobile money ($9.6M), digital wallets ($33M), POS systems ($4.6) and prepaid($1.8) reflected the least amount of investment activity.
- The most active VCs included Andreessen ($123 Million), Vitruvian Partners ($135.7 Million) and Index Ventures ($108 Million).
- From a geographic perspective, China was the least active geography and the US was the most active.
- The median investment amount was $4 Million.
The Retail and Commercial Payments Top 20
Here are the top 20 investments that drove 80 percent of the funding activity in June 2014.