2017 Promises to Be Active for Payments and Fintech Mergers and Acquisitions

2017 is already looking to be one of the potentially most active years for payments and fintech mergers and acquisitions. 2016 saw some of the most activity we've seen since before the 2008 global financial crisis. A confluence of events would seem to be setting the stage for a record year, including significant availability of capital, interest in the payments sector from ISVs, software and technology companies, as well as the continuing long term growth of cashless transactions. With the changing of presidential administrations, the uncertainty as to what is to come this year has already fueled speculation on rising interest rates as well as the potential that there may be investor-based incentives to further stimulate US corporate growth. It's hard to imagine that there wouldn't be a better time for legacy payments companies to take some or all of their "chips" off the table than in 2017.

The payments industry continues to undergo a massive transformation. Originally a transactional-only business, with little value added and with negligible product or service differentiation, 2017 will see increased pace in the metamorphosis into a technology-driven, value added business with industry specific software and expertise as well as many touch points, creating a level of "stickiness" that has never existed before in this space. Those rapid transformations are driving many firms, both inside and outside the payments and fintech space, to accelerate the pace of strategic acquisitions. Regardless of your political affiliation, 2017 promises to be dynamic in the world of payments and payments technology.