Yapily Buys finAPI to Boost Share of European Open Banking Market

London open banking API startup Yapily has signed an acquisition deal with German private credit bureau SCHUFA to purchase its 75% stake in open banking API firm finAPI, to create what Yapily said will be the largest open banking payments platform in Europe.

Terms of the deal were not disclosed and the acquisition is expected to be completed in the second half of 2022, according to a Tuesday (May 10) blog post. As a combined entity, Yapily will double its user base by adding finAPI customers, which include over 50 large enterprise firms in the financial, insurance, and IT industries.

“This is a hugely exciting milestone for Yapily on our journey from disruptive start-up to ambitious scale-up,” said Stefano Vaccino, founder and CEO of Yapily.

“Within three years from launch, we have commercialized our platform, grown our customer base, and now have the largest open banking payments volumes in Europe. Working with finAPI, we can gain more speed, agility, and depth to accelerate innovation and shape the future of open finance in Europe and beyond,” Vaccino said.

See also: EU’s Open Banking’s Payments Transformation Faces FinTech Headwinds

The acquisition gives Yapily a leadership position in the U.K. and Germany, two of Europe’s biggest markets. It also adds Czech Republic, Slovakia and Hungary to the 16 countries where Yapily does business.

As part of Yapily, finAPI customers will gain new opportunities for business growth, access to pan-European markets, and more coverage and resources. The combined offering also brings Yapily customers several finAPI solutions, including identity and age verification, KYC tools, and digital account checks that can be used for automated credit scoring.

“Yapily’s core DNA as a fintech and open banking enabler is equally aligned with our belief in an infrastructure-first approach. From the products we’ve built to the industries our customers operate in, our complimentary offerings mean that together, we are perfectly placed to spearhead Europe’s open finance agenda and make the financial lives of millions of people more resilient, simple, and secure,” said Dr. Florian Haagen, founder and CEO of finAPI.

Read more: Yapily Partners With Yonder to Offer Credit to Underserved

Tanja Birkholz, CEO of SCHUFA, the company strives to “further strengthen client centricity” and pointed to open banking as among the “technological levers advancing Europe’s digital economy.”