Mergers and Acquisitions in the Payments Industry – Recent Trends and Key Deals

The payments industry in the United States has experienced a wave of Mergers and Acquisitions (M&A) in recent years. Major payment processors, fintech startups, and even traditional financial institutions have been consolidating to expand their capabilities and market reach.

This article provides a comprehensive overview of recent Mergers and Acquisitions activity in the payments sector – focusing on public company megadeals and private acquisitions – and examines the regulatory, legal, and financial aspects shaping these transactions.

We will highlight key players in the U.S. market, notable deals from 2022 through 2025, and the strategic goals driving these Mergers & Acquisitions in the payments industry.

Overview of Recent Mergers and Acquisitions Activity in the Payments Industry

After a frenzied period of deal-making in 2020-2021, the pace of payments industry M&A has fluctuated amid changing market conditions. 2021 saw record-high fintech valuations and major deals (such as Block’s acquisition of Afterpay, detailed later), but activity slowed in 2022-2023 as economic uncertainty and rising interest rates set in.

According to The Strawhecker Group, global payment Mergers and Acquisitions deal count fell sharply in 2023 – 72 deals worldwide, down 36% from 113 in 2022. Of those, 58 deals involved a U.S. company as either acquirer or target, reflecting the United States’ central role in this industry’s consolidation.

Notably, while the number of deals dropped, a few large acquisitions boosted total deal value. The total disclosed value of global payments Mergers and Acquisitions deals in 2023 was about $17.3 billion (36% lower than 2022’s $27.2B). U.S.-linked transactions accounted for $16 billion of that, indicating most big-ticket deals had American buyers or sellers.

For example, private equity firm GTCR’s purchase of a majority stake in Worldpay for $12.7 billion (from Fidelity National Information Services) was the single largest deal of 2023. By contrast, many smaller deals were put on hold as fintech company valuations recalibrated from their 2021 peak and negotiations between buyers and sellers slowed.

Despite the relatively quiet 2023, industry experts anticipate a rebound. Lower valuations and pent-up strategic demand point to a potential uptick in payments M&A in 2024 and beyond. Indeed, early 2025 has already seen announcements of megadeals (detailed later) signaling that consolidation in the payments sector is far from over.

In the following sections, we’ll explore key drivers behind this Mergers & Acquisitions activity and examine the most notable recent deals shaping the U.S. payments landscape.

Key Drivers of Mergers and Acquisitions in Payments

Multiple factors are driving mergers and acquisitions among payments companies. Below are some of the primary motivations and trends fueling consolidation:

Scale and Efficiency: The payments business often relies on high transaction volumes and razor-thin margins. Merging with or acquiring a competitor can create economies of scale, reduce duplicate costs, and improve operating efficiency.

For example, large processors like Fiserv and Global Payments have pursued acquisitions to increase their scale and lower unit costs after major deals in 2019 created behemoths in the industry.
Expanding Product Offerings: Established payment firms acquire fintech startups to rapidly add new technologies or services (often referred to as “buy versus build” strategy).

A good example is Visa’s acquisition of Pismo for $1 billion in 2023, which gave Visa a cloud-native core banking and issuer processing platform to enhance its digital payments and banking services.

Similarly, Mastercard’s purchase of Finicity (open banking) in 2020 and PayPal’s acquisition of Paidy (buy-now-pay-later) in 2021 expanded those companies’ product capabilities overnight.
Geographic Expansion: Cross-border deals allow U.S. payments companies to enter new regional markets. Global Payments Inc.’s $4 billion acquisition of EVO Payments (announced in 2022, closed in 2023) extended Global Payments’ reach into markets like Poland, Germany, Chile, and Greece.

That deal exemplified how acquirers seek international growth and customer bases beyond the U.S. Similarly, Fiserv’s and FIS’s acquisitions over the past few years have brought them operations across Europe, Latin America, and Asia-Pacific.
Competitive Pressure & Fintech Disruption: Incumbent payment processors and networks face intense competition from fintech innovators and big tech companies. Acquisitions can neutralize emerging threats or help incumbents catch up in innovation.

For instance, Visa’s attempted $5.3 billion acquisition of fintech Plaid in 2020 was widely seen as a move to preempt a nascent competitor in account-to-account payments. (The deal was eventually abandoned after DOJ intervention – more on that in the regulatory section.)

On the flip side, large fintech players themselves use M&A to grow – Block, Inc. (formerly Square) acquired Afterpay to gain a foothold in the booming “buy now, pay later” segment and remain competitive against other BNPL providers and tech firms.
Financial Strategy and Valuations: The state of capital markets heavily influences Mergers and Acquisitions activity. When stock prices are high (as in 2020-21 for many payment and fintech firms), companies can use their equity as currency for acquisitions.

Conversely, as interest rates rose in 2022-23, financing big deals with debt became costlier, and falling valuations made sellers hesitant. This caused a lull in deals as price expectations needed to adjust.

Now, with fintech valuations down from their peak, well-capitalized buyers (including private equity) see opportunities to acquire assets more reasonably. Private equity “dry powder” – large pools of capital waiting to invest – is expected to facilitate more deals going forward.
Strategic Refocusing: Sometimes companies divest or swap business units to focus on their core strengths.

A clear example is the 2025 asset swap between Global Payments and FIS: Global Payments agreed to acquire Worldpay (merchant acquiring business) for ~$24 billion, while simultaneously selling its own Issuer Solutions unit to FIS for $13.5 billion.

This complex deal (detailed below) shows two firms reshuffling assets so each can concentrate on what it does best – Global Payments doubling down on merchant payments, and FIS reinforcing its bank technology/issuer processing segment.

In summary, whether it’s achieving scale, acquiring innovation, entering new markets, or adjusting strategy, mergers and acquisitions in the payments industry are largely driven by the need to stay competitive in a fast-evolving financial technology landscape.

Notable Recent Mergers and Acquisitions Deals in the Payments Sector (2022–2025)

This section highlights some of the most significant recent Mergers and Acquisitions involving U.S. payments companies – including both public company megadeals and notable private transactions. These deals illustrate the consolidation trend and strategic moves across different segments of the payments industry.

Mega-Mergers and Large Acquisitions

Global Payments + Worldpay (2025) – In April 2025, Global Payments Inc. announced a landmark deal to acquire Worldpay (the merchant acquiring business that was part of FIS) for a net price of $22.7–24.25 billion.

Worldpay is a major payment processor serving merchants worldwide. This acquisition, once completed, will vault Global Payments to an even larger scale, combining Worldpay’s extensive client base with Global’s existing operations.

Notably, this deal is paired with a divestiture: at the same time, FIS (Fidelity National Information Services) will acquire Global Payments’ Issuer Solutions division for $13.5 billion.

In essence, Global Payments is trading its card issuing processor unit to FIS in exchange for FIS’s merchant acquiring unit (Worldpay). The combined company is projected to have about $12.5 billion in annual revenue and $6.5 billion EBITDA.

This mega-transaction reflects a strategic “swap” to allow each firm to focus on core strengths – and it underscores the ongoing realignment among the big three U.S. payment processors (Fiserv, FIS, Global Payments).
GTCR’s Purchase of Worldpay from FIS (2023) – Before the above 2025 deal emerged, FIS had already moved to sell a majority stake in Worldpay to private equity firm GTCR in 2023.

In July 2023, GTCR acquired 55% of Worldpay at a valuation of $12.7 billion. This partial divestiture by FIS came after it struggled to integrate Worldpay (which FIS originally bought for $35 billion in 2019) and even took a multi-billion dollar write-down on that acquisition.

The GTCR deal injected cash into FIS and was described as a strategic move to unlock value, though some analysts noted it might not indicate a broader M&A resurgence by itself.

Now, with Global Payments stepping in to buy Worldpay outright in 2025, GTCR’s short-lived ownership shows how private equity can act as an interim holder of assets in this industry, ready to flip them to strategic buyers when conditions are right.
Block (Square) + Afterpay (2021-2022) – One of the largest fintech acquisitions on record was Block, Inc.’s (formerly Square) $29 billion purchase of Afterpay.

Announced in August 2021 and completed in January 2022, this all-stock deal gave Block a major presence in the “buy now, pay later” (BNPL) market. At $29 billion, it was Block’s biggest deal ever and the largest acquisition of an Australian tech company to date.

Afterpay’s installment payment platform was integrated with Square’s seller and Cash App ecosystems, reflecting Block’s strategy to build a comprehensive commerce and consumer finance platform.

This deal happened at the height of BNPL popularity and fintech valuations. While it dramatically expanded Block’s user base (Afterpay had over 16 million users), the high price also drew attention – it exemplified the rich valuations of 2021.

Nonetheless, strategically, the acquisition positioned Block to compete with PayPal, Klarna, and others in the BNPL space.
Fiserv + First Data (2019) and FIS + Worldpay (2019) – Though a bit beyond our “recent” window, it’s important to note these 2019 megamergers because they set the stage for current industry dynamics.

In 2019, Fiserv acquired First Data for $22 billion, and FIS acquired Worldpay for $35 billion (around $43 billion including debt).

These two deals created three giant payment processing firms (Fiserv, FIS, Global Payments*+TSYS*) that dominate many aspects of merchant acquiring and financial institution services in the U.S.

The aftermath has influenced recent Mergers and Acquisitions: Fiserv successfully integrated First Data and became a powerhouse in merchant services and fintech, whereas FIS’s challenges with Worldpay led to the divestitures noted above.

The 2019 wave of mergers thus demonstrated both the potential benefits of scale and the risks if synergies don’t pan out.
Global Payments + TSYS (2019) – Likewise, Global Payments’ merger with TSYS for $21.5 billion in 2019 created a combined company offering merchant acquiring (Global’s forte) and issuer processing for banks (TSYS’s forte).

This integration helped Global Payments offer end-to-end services. Fast forward to 2025, Global is shedding TSYS’s issuer business as mentioned, highlighting how strategies evolve over time.

Strategic Fintech and Tech-Driven Acquisitions

Visa + Pismo (2023) – Visa Inc., the largest U.S. card network, agreed to acquire Pismo, a Brazilian cloud-based payments and core banking platform, for $1 billion in cash.

Pismo’s technology enables banks and fintechs to issue cards and offer digital banking services via cloud APIs. Visa’s CEO noted that buying Pismo would help Visa provide more “differentiated core banking and issuer solutions” to its financial institution clients worldwide.

This deal aligns with Visa’s strategy of expanding beyond its traditional card network by owning fintech infrastructure. It mirrors Visa’s earlier acquisitions of Tink (open banking platform in Europe) and Currencycloud (cross-border currency transfer platform) in 2021.

By acquiring innovative tech companies, Visa can both accelerate its product development and prevent potential rivals from dominating new payment rails.
Mastercard + Finicity (2020) – Visa’s main rival, Mastercard, also made a major fintech acquisition with its $825 million purchase of Finicity in 2020. Finicity is a U.S.-based open banking and data aggregation company.

This move came as open banking (consumer-permissioned financial data sharing) was becoming critical for payments and personal finance apps.

Mastercard integrated Finicity’s technology to offer bank account connectivity and data services, complementing its card network.

It’s worth noting Mastercard had also acquired Vocalink in 2017 (a U.K. bank payments network) and later Ekata in 2021 (digital identity verification) – all part of a trend of card networks diversifying via Mergers & Acquisitions into broader fintech services.
Marqeta + Power Finance (2023) – In a bid to expand into the buy-now-pay-later and credit card issuance space, Marqeta (a U.S. payment card issuing platform) acquired Power Finance, a fintech startup, for $275 million in January 2023.

Power Finance specialized in modern credit card program management (including BNPL-style offerings).

This acquisition allows Marqeta to offer its clients the ability to launch new credit products more rapidly, illustrating how mid-sized public fintech companies are using acquisitions to enhance their product suite.

Marqeta’s deal also came at a time when its stock price had fallen since IPO, so the company leveraged its cash to buy growth in a complementary area.
PayPal’s Acquisitions – PayPal, another key player in U.S. digital payments, has also been active in M&A to broaden its ecosystem. In 2018 it bought iZettle (a Swedish small-business point-of-sale provider) for $2.2 billion to rival Square in international markets.

In 2019 PayPal paid $4 billion for Honey, a popular online deal-finding and rewards platform, to integrate shopping tools and better target consumers. And in 2021 PayPal acquired Paidy, a Japanese BNPL firm, for $2.7 billion to strengthen its installment payment offerings globally.

These deals (though some are a few years older) underscore how PayPal strategically uses acquisitions to add new capabilities (in-store POS, consumer rewards, BNPL) to its core online payments business.

While no massive PayPal acquisitions occurred in 2022-2023, there were rumors (now defunct) that PayPal even considered buying Pinterest in 2021 – showing its appetite for expanding into e-commerce adjacencies.
Apple and Big Tech Moves: Thus far, Big Tech firms have mostly built payments capabilities in-house (e.g. Apple Pay, Google Pay), but there have been a few targeted acquisitions.

Notably, Apple Inc. acquired Mobeewave in 2020 – a startup enabling smartphones to accept contactless card payments – to bolster its Apple Pay and Tap-to-Pay technology.

Also, Apple in 2022 bought Credit Kudos, a UK open banking credit scoring startup, signaling interest in fintech infrastructure.

While these deals are smaller, the entry of Big Tech into financial services raises the stakes for traditional payment companies and could portend larger acquisitions or partnerships in the future.

Private Equity and Take-Private Deals

Thoma Bravo + Bottomline Technologies (2022) – Private equity firms have been very active in the payments and fintech space.

In May 2022, Thoma Bravo (a U.S. PE firm) completed a $2.6 billion take-private acquisition of Bottomline Technologies, a cloud software provider for bank payments, cash management, and fraud detection.

Bottomline was a publicly traded fintech that Thoma Bravo saw value in transforming away from the public markets.

The deal is indicative of a trend where PE firms acquire fintech and payments companies whose stock prices lag or whose business could benefit from restructuring outside the quarterly scrutiny of Wall Street.
Vista Equity Partners and Others: Vista Equity (another major tech-focused PE) has also made moves – for instance, Vista was involved in the 2023 acquisition of Ice Mortgage Technology (part of Intercontinental Exchange’s spin-off deals) and earlier took firms like Misys and DH (banking/payments software) private.

While not all directly “payments processors,” these deals influence the broader fintech infrastructure. In 2023, Brookfield and partners acquired Network International (a Middle East payments processor) for about $2.8 billion, showing global investor interest in payment companies (though that particular deal is outside the U.S.).

Private investors are drawn by the steady cash flows in payment processing and the growth potential of digital payments.
GTCR and Others in 2023-24: As mentioned, GTCR’s carve-out of Worldpay was a headline private equity deal in 2023.

Additionally, Silver Lake invested $1.5 billion in Global Payments in 2022 (via convertible notes) to help finance its EVO Payments acquisition and other growth. This illustrates how private investment is funding industry consolidation.

Another example: in mid-2023, a consortium led by Centerbridge and Alliance Data took ZIPCo’s U.S. assets (Sezzle) in the BNPL space private – highlighting PE interest in distressed or smaller fintech players as well.

In sum, both strategic buyers (industry companies) and financial sponsors (private equity) have been driving Mergers and Acquisitions in the payments sector.

The deals range from blockbuster mergers of equals to nimble acquisitions of startups and carve-outs of non-core divisions. Below is a summary table of selected notable deals:

Year	Acquirer	Target	Value	Description / Rationale
2025 (ann.)	Global Payments (GPN)	Worldpay (from FIS/GTCR)	~$24.25 billion	Mega-merger to expand merchant acquiring scale; concurrent sale of Global’s issuer processing unit to FIS.
2023	GTCR (Private Equity)	Worldpay (55% stake from FIS)	$12.7 billion	Private equity carve-out of FIS’s merchant payments arm, preceding Global Payments’ 2025 deal.
2023	Global Payments (GPN)	EVO Payments (EVOP)	$4.0 billion	Acquisition of a smaller U.S. rival to broaden Global’s international footprint and B2B payments reach.
2023	Visa Inc.	Pismo (Brazil fintech)	$1.0 billion	Purchase of cloud-based core payments platform to enhance Visa’s issuer & banking solutions.
2022	Block (Square)	Afterpay (Australia)	$29 billion	Block’s all-stock buyout of BNPL leader to integrate installment payments into its ecosystem.
2020 (blocked)	Visa Inc.	Plaid (fintech API)	$5.3 billion (planned)	Aborted merger due to DOJ antitrust lawsuit; regulators saw Plaid as nascent competitor in online debit.
2019	Fidelity Nat’l (FIS)	Worldpay	$35 billion (cash & stock)	Transformative merger (enterprise value ~$43B) to combine banking tech with global merchant acquiring.
2019	Fiserv, Inc.	First Data Corp.	$22 billion (stock)	Major merger creating a one-stop-shop payments processor (merchant acquiring, issuer processing, network services).
2019	Global Payments (GPN)	TSYS	$21.5 billion	Merger combining merchant acquirer (Global) with leading issuer processor (TSYS), since restructured in 2025.
2022	Thoma Bravo (PE)	Bottomline Tech.	$2.6 billion	Take-private of B2B payments software firm to refocus and invest under private ownership.
2023	Nuvei Corp. (Canada)	Paya, Inc. (USA)	$1.3 billion	Cross-border acquisition of a U.S. payment processor, consolidating merchant services in mid-market segment.
2023	Marqeta, Inc.	Power Finance (startup)	$275 million	Purchase of BNPL card issuing platform to enhance Marqeta’s credit product capabilities.
2023	Wex, Inc.	Beneﬁt Express (Ascensus unit)	$180 million	Acquisition of a benefits payments/health savings account business, expanding Wex’s corporate payments offerings.

Table: Recent Notable M&A Transactions in the Payments Industry (Focus on U.S. Companies). This table highlights a mix of public-company mergers and private deals from 2019 through 2025, with an emphasis on the most recent years.

Mid-sized and Ongoing Consolidation

In addition to the headline-grabbing deals above, there has been a steady drumbeat of mid-sized acquisitions in the payments sector, especially in late 2022 and 2023:

In October 2023, for instance, a flurry of smaller deals took place: Fiserv acquired Skytef to strengthen its Latin American presence, Shift4 Payments made acquisitions to expand its hospitality and international business, fintech firm Stax acquired CardX to broaden its technology suite, and gateway provider NMI announced an acquisition to extend its payment gateway capabilities.

These transactions underscore that consolidation is happening at all levels of the industry – not just via megamergers, but also through targeted purchases by regional players and fintech upstarts aiming to scale up.
Crypto and Web3 payments: A newer area of activity has been acquisitions related to cryptocurrency payments and blockchain.

For example, Mastercard acquired CipherTrace in 2021 (a crypto analytics firm) to improve its fraud detection in digital assets, and Visa has invested in crypto wallet startups.

While not large in dollar terms, such moves show incumbent networks positioning themselves in the emerging crypto payments arena by buying specialized companies.

Overall, the period from 2022 to 2025 has been marked by both transformative mergers and tuck-in acquisitions. The net effect is a continuously evolving competitive landscape where a handful of giant players command broad portfolios, and up-and-coming fintechs either find a niche or often become part of those giants through Mergers and Acquisitions.

Regulatory and Legal Considerations in Payments M&A

Given the crucial role of payments in the economy and the already concentrated market (e.g. two card networks process the majority of U.S. card transactions), regulators closely scrutinize Mergers and Acquisitions in the payments industry.

The primary concern is usually antitrust – ensuring that consolidation does not stifle competition, harm merchants or consumers with higher fees, or eliminate innovative challengers.

The most prominent example of regulatory intervention was the DOJ’s blockade of Visa’s acquisition of Plaid. In late 2020, the U.S. Department of Justice filed an antitrust lawsuit to stop Visa from buying Plaid, on grounds that Visa was a “monopolist in online debit” and viewed Plaid’s nascent payments platform as a competitive threat.

The DOJ argued that allowing the $5.3B deal would let Visa “eliminate this competitive threat” in its infancy. Facing trial, Visa and Plaid abandoned the merger in January 2021.

Regulators hailed this as a victory for competition, asserting that Plaid and other fintech innovators could now develop alternative payment solutions to challenge Visa’s dominance.

This case was noteworthy because Plaid at the time wasn’t directly competing in card processing, but authorities took a forward-looking view on potential competition (“nascent competition”).

It sent a clear signal that “killer acquisitions” (where incumbents buy emerging rivals to preempt future competition) would face tough scrutiny in fintech and payments.

Antitrust reviews are now a standard part of any large payments deal. For instance, when Mastercard bought Vocalink and Visa bought Earthport (both UK-based payments network acquisitions a few years ago), they had to undergo regulatory reviews in multiple jurisdictions.

Similarly, Block’s Afterpay acquisition – while ultimately approved – was reviewed by various regulators (including Australia’s FIRB and Spain’s central bank) due to its size. Traditional competition concerns could arise if, say, two major payment processors plan to merge, as merchants fear increased bargaining power of processors.

The large 2019 mergers (Fiserv-First Data, FIS-Worldpay, Global-TSYS) did pass muster, but any further combination among the remaining giants would likely face steep regulatory hurdles in the U.S. and abroad.

Financial regulators also have a say, especially if bank charters or consumer financial products are involved. The CFPB (Consumer Financial Protection Bureau) might review how an acquisition affects consumer data or lending (for example, in a BNPL deal).

If a big bank were acquiring a payments fintech, banking regulators (OCC, Federal Reserve) would vet it for financial stability and compliance. In the recent wave, most acquirers are non-banks, but these considerations could come into play as fintech and banking converge.

Another aspect is data security and privacy: Payment companies hold sensitive financial data, so mergers raise questions about how combined entities handle data. Regulators may impose conditions related to data siloing or governance, especially in cross-border deals (ensuring compliance with GDPR, etc., if data moves internationally).

In summary, antitrust enforcement in the U.S. has become more vigilant for payments M&A, aiming to preserve competition in a sector that underpins commerce. Companies often proactively argue how their deals will enhance innovation and efficiency rather than eliminate competition, to get regulatory approvals.

We can expect future deals – especially among the biggest players – to be carefully examined or even challenged if they are seen to reinforce duopoly or oligopoly power.

Financial Aspects: Valuations, Synergies, and Deal Financing

Mergers & Acquisitions in the payments industry are also analyzed through a financial lens: Are the prices being paid justified? How are deals being financed? Are the expected synergies realistic? Here are some key financial considerations:

Valuations and Multiples: Fintech and payments company valuations have been volatile. In the late 2010s and again in 2020-21, many payment firms traded at high revenue multiples due to growth prospects.

For example, Afterpay’s $29B price implied a very high multiple on its revenue, reflecting growth expectations and the BNPL hype. Conversely, by 2022-23, valuations cooled significantly (many fintech stocks were down 50%+ from highs).

This meant buyers could potentially acquire targets more cheaply than a year prior – but it also meant many target companies were reluctant to sell at “depressed” prices. The result was a gap in price expectations that slowed deal-making in 2022-23.

Only when reality set in (for sellers) or stock prices stabilized did more deals get done. For instance, Nuvei’s acquisition of Paya for $1.3B in early 2023 was at a reasonable multiple and took advantage of Paya’s moderate valuation.
Synergy and Cost Savings: A major rationale for large mergers (like Fiserv-First Data or FIS-Worldpay) is the opportunity to cut costs and cross-sell services – in other words, synergy.

These firms aimed to eliminate overlapping expenses (data centers, back-office, etc.) and offer integrated solutions to clients (e.g., bank clients of FIS could be sold Worldpay merchant services).

Realizing synergies is crucial to justify the hefty price tags. In FIS’s case, achieving the anticipated cost savings and revenue synergies from Worldpay proved challenging – leading to investor pressure and eventually the reversal of that merger.

Fiserv, on the other hand, appears to have better realized synergies with First Data, contributing to strong earnings growth. Thus, whether an M&A ultimately creates value or results in goodwill write-downs depends on execution post-merger.

The mixed outcomes in payments Mergers & Acquisitions show that synergy projections aren’t always met, especially if corporate cultures clash or client attrition occurs during integration.
Financing and Deal Structure: Payments deals have been financed through various means:
- Stock-for-stock mergers: e.g., Fiserv used all-stock to buy First Data (allowing First Data shareholders to partake in the combined upside), Block used stock for Afterpay. This is common when the acquirer’s stock is highly valued.
- Cash deals and debt financing: e.g., Visa’s acquisitions (Plaid was to be cash, Pismo is cash) often use cash on hand or bonds. Low interest rates in the past made debt financing attractive.
  
  Now with higher rates, we see some creativity – such as Silver Lake’s $1.5B convertible note investment into Global Payments to support its EVO acquisition (a hybrid debt-equity instrument).
- Private equity leveraged buyouts: GTCR’s Worldpay deal involved significant debt financing as is typical for PE, but interestingly the subsequent Global Payments deal will likely reduce leverage by combining with a strategic buyer.
- Earn-outs and contingent payments: In smaller fintech acquisitions, acquirers sometimes include earn-outs (future payments if targets hit performance goals) to bridge valuation differences and reduce upfront risk.
Impacts on Shareholders: Large acquisitions can have mixed reception from investors. Often the acquirer’s stock dips on announcement (due to the big cash outlay or share dilution), while the target’s stock jumps (due to the premium offered).

For example, Global Payments’ offer for EVO at $34/share was a ~24% premium to EVO’s prior price, so EVO’s stock rose on the news. Global Payments shares, however, moved based on confidence in the deal’s accretiveness.

In the long run, if a deal strengthens market position and earnings, shareholders benefit; if it falters, they bear the cost. Activist investors sometimes get involved – for instance, after FIS’s struggles, activists pushed for a breakup which materialized.

Thus, shareholder value considerations are at the forefront when these deals are evaluated.
Regulatory Costs and Requirements: Financially, companies also must factor in the cost of regulatory compliance for mergers. Prolonged reviews can delay closing (which happened with some cross-border deals).

Sometimes regulators require divestitures of parts of the business as a condition for approval, which can alter the financial calculus. So far in payments, we haven’t seen major forced divestitures in the U.S., but it remains a possibility for future big deals.

In summary, the financial aspect of payments M&A involves finding the right price and structure to make a deal work, and then executing to achieve the promised financial benefits. The history of these mergers shows both big successes and some stumbles, underscoring the importance of due diligence and integration planning.

Impact on the Industry and Outlook

What do these mergers and acquisitions mean for the payments industry in the U.S.? Several trends are clear:

Consolidation of Market Power: The largest payment processing companies have grown even larger through Mergers and Acquisitions. This consolidation can lead to greater efficiency and one-stop service offerings, but it also raises concerns about competition.

Merchants worry that fewer competitors in processing could mean higher fees or less choice. On the other hand, big processors argue that their scale leads to lower costs per transaction and more innovation resources.

We are effectively seeing the emergence of a few integrated financial technology conglomerates that handle everything from merchant acquiring, card issuing, ATM networks, to digital wallets.
Expanded Service Range: Customers (both merchants and banks) are increasingly able to get a full suite of payment services from a single provider due to these mergers.

For instance, after its acquisitions, Fiserv can offer a local merchant credit card processing (via First Data’s Clover platform), bank core account services, debit network (STAR Network), and even fintech services like bill pay – all under one roof.

This breadth can be attractive for clients who prefer integrated solutions. Similarly, Global Payments + TSYS + Worldpay combined means merchants can get global card acquiring and integrated point-of-sale, while banks get card issuing and loyalty services from the same company.
Tech Integration and Innovation: A positive effect of M&A is often the infusion of new technology into incumbents.

We’ve seen legacy firms modernizing by acquiring startups – thereby accelerating the adoption of APIs, cloud platforms, and data analytics in the industry. The challenge is ensuring that the acquired tech is well-integrated and that innovative teams are retained post-acquisition.

Done well, this can improve the overall technology standard across payments. For example, Visa’s integration of startups like Plaid (had it happened) or Pismo is aimed at offering more cutting-edge services rather than relying solely on legacy systems.
Globalization of Payments: U.S. companies acquiring international players (and vice versa) has made the payments industry more global.

The lines between domestic and foreign payment companies are blurring – a merchant in the USA might use a processor that gained its European capabilities via acquisition, or an American fintech might now be owned by a European acquirer.

This global Mergers & Acquisitions trend helps build more interoperable and worldwide payment networks, aligning with the needs of multinational merchants and the growth of e-commerce across borders.
Regulatory Influence: The active stance of regulators, especially on antitrust, could influence how far consolidation goes.

If regulators signal that certain combinations are off-limits, companies might shift strategies (perhaps focusing on smaller acquisitions or partnerships instead of mega-mergers).

For example, Visa and Mastercard are cautious about large acquisitions that could be seen as eliminating competitors – instead they often pursue smaller deals in adjacent areas (data services, fraud prevention, etc.) which are less likely to draw antitrust ire.

The outcomes of any future challenges (for instance, if the DOJ were to challenge a big merger of two processors) will shape the landscape significantly.

Looking ahead, industry analysts expect M&A activity in payments to remain robust. As one industry report noted, despite macroeconomic uncertainties, the appetite for large deals continues to grow in financial services, including payments.

In the first half of 2025, global financial services Mergers & Acquisitions deal values were up 15% year-over-year, driven by several mega-deals in payments. The pressures of digital transformation, competition (including from non-traditional players like fintechs and tech giants), and the need for scale are “underpinning deals across geographies and subsectors”.

In the U.S., we may see more acquisitions of fintech startups as venture funding has pulled back – established companies can scoop them up at more reasonable prices. Private equity will also continue to be a major player, possibly taking more public payment tech companies private if valuations are attractive.

In conclusion, Mergers and Acquisitions in the payments industry are shaping a new era of how payments are processed and delivered. Customers could benefit from more integrated and innovative services as companies combine strengths.

However, it will be important to monitor competitive dynamics to ensure the industry remains healthy and competitive. With big deals like Global Payments-Worldpay on the horizon and numerous smaller deals happening regularly, consolidation will remain a key theme in the payments sector.

Companies will keep using M&A as a strategic tool to adapt to the fast-changing world of payments – from traditional card processing to mobile wallets, real-time payments, and beyond.

FAQs

Q: What are the recent trends in the payments industry Mergers and Acquisitions?

A: Recent trends include a wave of consolidation among major payment processors and fintech companies, albeit with some slowdown in 2022-2023 compared to the 2020-2021 boom. Deal volume dropped in 2023 versus 2022, but a few large deals (like private equity purchases and strategic megamergers) kept total deal value significant.

Key trends are the pursuit of scale, acquisitions of fintech startups for technology, and portfolio restructuring (firms swapping or divesting non-core units). By 2024-2025, there are signs of re-acceleration in Mergers & Acquisitions activity as valuations stabilize and companies refocus on growth via acquisitions.

Q: Why are companies in the payments sector merging or acquiring others?

A: Several strategic reasons drive payments M&A:

(1) Scaling up to handle more volume efficiently and reduce costs per transaction;

(2) Expanding product lines by acquiring new technologies or services (for example, a processor buying a fintech to offer cryptocurrency payments or buy-now-pay-later options);

(3) Entering new markets internationally by buying local payment providers;

(4) Removing competition or responding to disruption, such as incumbents acquiring rising fintech challengers; and

(5) Financial benefits, including synergies (cost savings, cross-selling) and using strong stock prices or available capital to invest in growth opportunities.

Essentially, companies merge or acquire to strengthen their competitive position and better serve merchant and consumer needs in a fast-evolving industry.

Q: How have regulators responded to Mergers and Acquisitions in the payments industry?

A: Regulators, especially antitrust authorities like the U.S. Department of Justice, have increased scrutiny of payments M&A. They aim to prevent deals that could significantly reduce competition or create monopolies in critical payment markets.

A notable example was the DOJ’s lawsuit that led Visa to abandon its $5.3B acquisition of Plaid in 2021, on grounds that it would have eliminated a potential competitor.

Large deals now undergo thorough antitrust review, and regulators may impose conditions or even block transactions if they believe consumers and merchants would be harmed by less competition.

Financial regulators may also evaluate aspects like data security or, in bank-related deals, financial stability. Overall, while many deals have been approved, regulators are actively monitoring to ensure consolidation doesn’t hinder innovation or fairness in the payments ecosystem.

Q: Who are the key players in the U.S. payments industry M&A?

A: Key players include established payment companies and networks – for instance, Visa and Mastercard (card networks that have acquired fintech firms to extend their services), PayPal (a digital payments leader that has bought smaller companies like Honey and Paidy), and Block (Square) (which made the huge Afterpay acquisition).

Then there are the major payment processors – Fiserv, FIS, and Global Payments – which have grown through large mergers (First Data, Worldpay, TSYS respectively) and continue to trade assets or acquire smaller firms.

Fintech companies like Stripe, Marqeta, SoFi, and others also participate, either as acquirers of startups or potential targets for larger players. Additionally, private equity firms (e.g., GTCR, Thoma Bravo, Silver Lake, Vista) are key players, often buying, investing in, or selling payments businesses.

These entities, along with emerging fintech innovators, form the network of players driving Mergers & Acquisitions in the U.S. payments space.

Q: What was one of the biggest recent acquisitions in the payments industry?

A: One of the biggest in dollar terms was Block, Inc.’s (Square) $29 billion acquisition of Afterpay, completed in early 2022. This was a blockbuster deal in the fintech realm, making Block a major provider of buy-now-pay-later services.

Another extremely large deal on the horizon (announced 2025) is Global Payments’ plan to acquire Worldpay for approximately $24 billion, which, if finalized, will reshape the merchant acquiring landscape.

In the traditional payments processing space, the 2019 mergers like FIS’s $35 billion deal for Worldpay and Fiserv’s $22 billion deal for First Data were monumental (though FIS’s has partly unwound since). Each of these mega-deals reflects the ongoing trend of massive consolidation in payments.

Conclusion

The U.S. payments industry is in the midst of significant consolidation. Recent Mergers & Acquisitions – from blockbuster deals among public companies to strategic purchases of fintech startups – are redefining the competitive landscape of payments.

Key players such as Visa, Mastercard, PayPal, Block (Square), Fiserv, FIS, and Global Payments have all engaged in M&A to broaden their capabilities, enter new markets, or streamline their focus. Private equity investors likewise have targeted payments firms, attracted by stable revenues and growth potential.

This trend has accelerated innovation (as incumbents integrate new technologies from acquired fintechs) and produced a handful of one-stop payment giants. At the same time, regulators are vigilant to prevent excessive concentration that could harm merchants or consumers, evidenced by high-profile interventions like the DOJ’s action against Visa/Plaid.

Financially, the success of these mergers hinges on paying the right price and achieving synergies – some firms have thrived post-merger, while others have faced integration challenges. Going forward, mergers and acquisitions will likely remain a driving force in the payments industry’s evolution.

As cashless payments grow and new fintech innovations emerge, both established companies and up-and-comers in the USA will continue leveraging Mergers and Acquisitions to stay competitive and meet the demand for faster, more secure, and more convenient payment solutions.

The landscape in 2025 and beyond may feature fewer, more powerful players offering end-to-end payment ecosystems, alongside niche specialists that arise (and perhaps later get acquired) to fill specific market needs.

In summary, M&A in the payments industry is a dynamic arena that reflects the broader shifts in finance and technology – with the ultimate goal of delivering better payment experiences in an increasingly digital economy.