Cross-border payments could potentially be influenced by mergers and acquisitions involving Western Union, Revolut, Visa, and Fleetcor.

In the dynamic world of fintech, Western Union and Revolut are making waves as they actively pursue mergers and acquisitions (M&A). Both companies boast a strong financial position, making them formidable players in the market.

The cross-border payments sector has seen a surge of M&A activities since the beginning of 2019, with approximately 1,400 deals, around 300 of which were in the payments sector. One of the most active segments has been cross-border payments, which has witnessed five major deals and a few smaller or undisclosed ones.

On the consumer side, independent players such as Sigue, Dolex, Viamericas, and Moneytrans dominate, but they may not add enough scale to a potential acquirer. On the B2B side, companies like AFEX and FIRMA stand out. AFEX's B2B focus would likely best fit alongside other B2B specialists such as Fleetcor-backed Cambridge Global Payments, Western Union Business Solutions, Argentex, or Alpha FX.

The fragmented nature of the cross-border payments market, with Western Union holding around 12-13% of the market share, presents numerous opportunities for consolidation. The acquisition of Sendwave by WorldRemit is a recent example of this trend.

Independent international payment companies with sufficient size to represent a potential buyer include Adyen (Netherlands), Nuvei (Canada), Stripe, PayPal, Visa, MasterCard, Fiserv, and American Express, among others. These global players, with extensive payment networks and significant revenues, are viable acquirers in the payments sector.

The Revolut CEO has recently stated that they have a strong financial position after a fundraising, and have expressed interest in acquisitions. Similarly, Daniel Webber, in a linked article, discusses the strategies of various players in the cross-border payments market and potential acquisition targets.

Interestingly, venture capital has been more prominent than private equity in the cross-border payments sector. This dynamic could shape the future of the market as these companies continue to grow and explore strategic partnerships.

As the cross-border payments market continues to evolve, the landscape is ripe for consolidation, with Western Union and Revolut at the forefront of this exciting period of change.

Cross-border payments could potentially be influenced by mergers and acquisitions involving Western Union, Revolut, Visa, and Fleetcor.