payments Insight. Opinion.

vol 8

Mobile proximity payments: three ecosystems fighting for victory

Finn-Ove Putensen At the end of 2013, the mobile payments market Junior Associate looked quite different than it does today. Espe- cially “new attackers” such as start-ups tried to Mirko Krauel conquer the market by introducing proprietary Principal solutions. Large providers like Yapital (Luxem- bourg / Germany) or LevelUp (USA) invested heavily and also PayPal introduced a solution for CONTENT 2014 was a very interesting year in terms of mobile proximity payments. Aside from the three mobile proximity payments, the payment via a comparably large providers, numerous start-ups mobile phone at the POS. The latest major devel- released their – often QR-based – payments solu- 1 Mobile Proximity Payments opment is the entry of Apple’s solution tions, trying to win merchants and market share. Due to major developments the mobile payment into the mobile payments market. Shortly after its landscape changed in the past year. Mirko Krauel and launch, Apple Pay was already supported by more In addition, banks also launched their own pay- Finn-Ove Putensen will show that three major ecosys- than 500 banks in the US. This has caused some ments solutions in several European countries. tems fight for market victory and give a forecast of who reactions from other players like the – not yet Some successful examples of this are Swish could win. launched – CurrentC solution from competitor (Sweden) or Paym (UK). These two solutions MCX. The merchants who will participate in the started with P2P payments but plan to extend 3 Public Market Valuations MCX initiative are currently blocking the Apple their services in the near future (e.g. mobile prox- Public companies in the payments universe have experi- Pay solution. Putting this emotional discussion imity payments). These banking initiatives can enced an interesting third quarter. Markus Massem aside, we believe that the launch of Apple Pay will be very strong when banks collaborate, e.g. Paym takes a look at valuation drivers and benchmarks the dif- be the final brick for the NFC ecosystem to suc- already acquired more than 1.6 million customers ferent groups within the payments universe. ceed. In this article, we will review the key devel- since its launch this past April. opments of the last twelve months and give an 4 M&a Activity outlook on the potential mobile proximity pay- What are the key drivers of M&A activity? Which trans- ments landscape at the end of 2015 as still many actions made headlines in the 3rd Quarter of 2014? changes are lying ahead of us. What are recent takeover rationales? Andreas Haber- setzer and Robert Kayser answer these questions. Key developments of the mobile payments land- scape in the last twelve months 6 In oversimplified terms, currently three ecosys- Yet again the Innovalue team reviews the latest payment tems are fighting for overall leadership in the startup funding activity (Q3 2014). What are current mobile payments market: product or service innovations for investors, and what are Proprietary solutions such as PayPal, large the global investment trends within the payment start-ups like Yapital and the other “new ecosystem? attackers” Bank-based solutions such as Swish 8 M&a Activity (Sweden) and Paym (UK) Transaction overview Traditional scheme-based solutions that are supported by Apple, Google and mobile 13 VC Activity network operators Transaction overview payments Insight. Opinion. 2

Additionally, some of the big Mobile Network to be fed. And with the upcoming interchange case, gaining critical scale on the consumer side, Operators (MNO) began to roll out their SIM- reduction in Europe, it will not be easy to find a and ensuring broad acceptance on the merchant based mobile payments solutions for their sustainable business model for all participants. side. But the key problem is that bank initiatives Android smartphone base. Vodafone, for exam- Banks also must ensure that they retain customer can only survive if the majority of the relevant ple, launched their Vodafone SmartPass in ownership with regard to financial services. banks in one country will join the solution in order November 2013 in Spain and recently rolled out to creative sufficient scale and to convince the the service in the UK. "The launch of Apple merchants to become integrated. In many coun- tries where the banking landscape is highly frag- Pay created positive The landscape was very fragmented in terms of mented, this alignment will not be easy to achieve. providers, technology and strategy. This murky momentum for Today, in countries where few banks dominate the picture became at least a little bit clearer at the scheme-based solutions and market, we already see relevant cross-banking beginning of 2014 due to two major develop- had a positive spill-over effect, initiatives. Paym (UK) for example started with a ments. First of all, Google introduced Host Card P2P use case but has also moved into consumer- even for other solutions such as Emulation (HCE), allowing a cloud-based solu- to-business use cases and might also grow to the tion for POS proximity payments based on the Google Wallet." POS. international schemes. This removed the gate- keeper position of MNOs. In February 2014, both We believe that the most proprietary solutions Conclusion Visa and MasterCard announced that they will will only survive in certain merchant segments We have demonstrated that, at the moment, support HCE. As a second development, Apple (e.g. restaurants) or for certain use cases (e.g. there are three key competing ecosystems fight- launched its payments solution in the US, also order-ahead and window shopping). The big ing for victory in the mobile proximity payments relying on a scheme-based approach in combina- question is if one of the players will be able to market landscape. All of them are facing serious tion with its own hardware secure element. generate sufficient scale in order to become a challenges that they need to solve. As mentioned payments scheme on its own. We expect that due above, we believe that on a global level the recent An outlook on the potential mobile proximity to the pure amount of initiatives and the resulting developments might give the scheme-based solu- payments landscape at the end of 2015 marginalisation, consolidation will now start and tions an advantage over the other ecosystems, We therefore believe that the launch of Apple Pay increase throughout 2015 – only the major provid- but this needs to be seen and there has to be a created positive momentum for scheme-based ers will survive the consolidation. sustainable business case for all participants. solutions and had a positive spill-over effect, even Within the proprietary solutions, we think that for other solutions such as Google Wallet. For It remains rather interesting for banks to develop only the biggest providers will survive, with some instance, Google Wallet has seen a 50 per cent their own solution in order to keep complete con- small providers potentially able to find an attrac- increase in transactions on a weekly basis after trol over the consumer relationship, to avoid tive niche. The consolidation in the industry will Apple Pay’s launch. Additionally, MNO wallets being pushed back into a pure enabling role, and begin now. Cross-banking initiatives are very can – if they reduce their current hurdles and to find a solution where they don’t have to share interesting, but they will only be successful if the restrictions – participate. But there’s one serious their revenues with a lot of players. Major chal- majority of relevant banks in a country align and obstacle: within the system, many mouths have lenges include developing an attractive business cooperate on such a joint initiative.

Market relevance and readiness of mobile payments solutions

Relative market relevance Scheme-based solutions • Appearence of suitable payments solutions (e.g. Apple Pay, Google Wallet, HCE) • Builds on existing infrastructure (e.g. acceptance at POS) and scheme back-end

High • Will be relevant in the future not only in the USA but also in Europe

Proprietary solutions • Partially, mass-market suitable solutions existent (e.g. Paypal, LevelUp, Yapital) • Limiting factors are e.g. acceptance and lack of consumer base • Have to differentiate from payments in order to survive beside scheme-based solutions

Bank-based solutions

• Readiness differs from country to country (e.g. Paym in UK with relatively high readiness) • High fragmentation / institutional issues of banks as limiting factors

• Will be successful in some markets where banks can align but not in all countries

Mass-market readiness Today Tomorrow

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Public market valuations and the market environment

Markus Massem Senior Associate

Public markets have been choppy as of late after The public companies captured in our payments Visa saw a 4% jump in after-hours trading follow- concerns of a slowdown in global growth knocked universe (see end of article for listing) have ing its earnings results, as investors reacted posi- down the major indexes in mid-October. Since gained ground over the past two weeks through tively to the earnings report showing a marked then, broadly upbeat corporate earnings, contin- the end of October. This has been the result of improvement in cross-border transactions and ued improvement in U.S. economic data and the solid quarterly earnings and has largely made up growth in international revenue. Also guidance unveiling of an addi- for the losses incurred in was bullish with projected revenue growth in the tional stimulus from late September and the first low double digits for the fiscal year 2015. Master- the Bank of Japan have "The public half of October. Digital Card reported a better-than-expected jump in had positive impacts companies captured River shot up by 50% fol- quarterly profit as efforts to expand its interna- on the markets and in our payments lowing the announcement tional business paid off, with more people willing made up for some of universe have gained ground that it had entered into a to use cards instead of cash. those losses. In late definitive agreement to be October, markets again over the past two weeks acquired by an investor began worrying about through the end of October. group led by Siris Capital global growth pros- This has been the result of Group in a transaction val- pects, especially in solid quarterly earnings and ued at approximately $840 Europe, after the Euro- million, representing a pre- The payments universe (alphabetical order): has largely made up for the pean Commission cut mium of approximately 50 Acceptance: its forecast for GDP losses incurred in late per cent over the closing Global Payments, , PayPoint, Vantiv, growth in the Eurozone September and the first half price on October 23rd. Ear- Processing: region. Meanwhile, the of October." lier in the month, Digital Cielo, Euronet Worldwide, FIS, Fiserv, Heartland Payment US economy appears River had also announced a Systems, Total System Services to be on track to grow at a 3% annual rate, which partnership with Stockholm-based payment pro- PSP/Online payments: could potentially lead to a hike in short-term inter- vider . Digital River, Optimal Payments, est rates. With earnings season now mostly Issuing/Prepaid solutions: behind us, investors are likely to focus on eco- Green Dot, Wright Express nomic data, the upcoming ECB meeting and the Schemes: oil price, which has fallen to a four-year low. American Express, MasterCard, Visa

125

120

115

110

105

100

S&P 500 95 Schemes 90 Issuing/Prepaid Jul-14 Aug14 Sep14 Okt14 Nov14 PSP/Online payments Processing Acceptance Table 1: Indexed stock price performance from July 1st to October 31st 2014

Page 1 payments Insight. Opinion. 4

The Acceptance bucket was driven upwards by 70% Global Payments and Verifone, which announced 60% a partnership with Vantiv. The Issuing/Prepaid 61.5% 60.9% Solutions segment got a boost from a strong quar- 50% ter by Green Dot, which beat analyst estimates, 40% showed strong year-over-year EBITDA growth and also raised guidance for the year. Euronet, 30% 30.0% 31.7% Fiserv and FIS traded up higher due to strong 28.0% 28.0% 20% 22.0% 20.8% 20.9% 20.2% earnings results, with Euronet announcing on 18.6%

October 30th its intention to offer $350 million of 10% 11.4% 10.0% 10.1% convertible senior notes due 2044 in a private 7.6% 0% offering. Euronet will use the proceeds to repur- Revenue growth CY 12-13 Ebitda margin CY 13 Ebitda margin LTM chase shares, to repay borrowings outstanding under its revolving credit facility, and for general Table 2: Payments universe historical operational metrics as of October 31st 2014 corporate purposes.

25.0x

Overall, the valuation multiples of the payments 23.3 universe for the calendar year 2013 (EV/Revenue 20.0x CY13 and EV/EBITDA CY13) have seen an expan- 19.5 19.4 18.1 sion over the course of the last four months end- 17.2 15.0x 15.6 ing October 30th. The PSP/Online payments peer 13.3 group still trades at a premium to the wider pay- 12.1 10.0x 11.2 ments universe given strong growth, ongoing 10.2 8.2 margin expansion and M&A-activity in the 7.2 5.0x sector. 4.2 3.3 3.3 3.2 3.6 3.1 2.8 3.5 0.0x EV/Rev CY 13 EV/Rev LTM EV/EBITDA CY 13 EV/EBITDA LTM

Sources: Innovalue research and company Table 3: Payments universe historical trading multiples as of October 31st 2014 filings; Google Finance for share price data Note: LTM margin and trading multiples use the metrics for the last twelve months from the last

available company filing Acceptance Processing PSP/Online payments Issuing/Prepaid Schemes

M&A Activity

Andreas Habersetzer M&A activity and deal characteristics company’s expansion in North America and allow Partner A total of 47 M&A transactions were announced it to enter into the business with virtual bank-card in the third quarter of 2014. This represents a 21 payments to increase scale, earnings and to Robert Kayser per cent increase over the 39 deals announced in diversify its business. Associate the same period of 2013. The financial terms of 21 transactions, with a total volume of USD 8.1 billion, were disclosed. This quarter’s highlight in terms of deal size In the third quarter 2014, deal activity in the is FleetCor’s acquisition of Comdata international fintech industry has remained at a for USD 3.45 billion. As an issuer and a high level. A total of 47 transactions have been processor, Comdata provides fleet and reported with a total disclosed volume of USD corporate payment solutions to over 8.1 billion. Consolidation in the Northern Euro- 20,000 customers. FleetCor is a pro- pean payment market as well as emerging mar- vider of specialized payment products ket entries have been among the drivers. An and services to commercial auto fleets, additional push for the industry came from the oil companies and petroleum market- initial public offerings of Alibaba and MOL. ers. The deal is expected to foster the

Page 1 payments Insight. Opinion. 5

Key drivers of and rationale for M&A activity product portfolio. TLG has flown a bit under the Concerning multi-channel payment strategies, radar, but it has a strong UK client list. The com- there have been two interesting transactions: pany is particularly known for its mobile com- French terminal producer Ingenico acquired Glo- merce platform and solutions (couponing, balCollect to further enhance its value proposi- loyalty). Barclaycard's merchant clients are tion. While the company offers access to only expected to benefit from its loyalty programs and about 600 e-commerce merchants globally, Glo- data insight technology, enabling them to provide balCollect offers a wide range of international targeted services to their customers. payment methods and the ability to settle funds across these methods, which would allow "The general attitude Ingenico to further expand its IngenicoCollect service. They gathered new capital themselves to towards deal-making bulk up acquisitions or have been involved in has improved acquisitions. For Ingenico it is the second acquisi- significantly, bolstered by The median EBITDA-multiple from 2013 through tion of a major PSP, shortly after the purchase of investor confidence and risk the first three quarters of 2014 increased slightly, Ogone in early 2013. Now Ingenico has to prove from 14.5x to 14.7x. However, the median revenue its strategy in terms of synergies, merchant over- appetites." multiple from 2013 through the first three quarters of Industry consolidation, also supported by private 2014 dropped by 28 per equity investors, has already been a driver of cent, from 3.7x to 2.7x. The M&A-activity over the last few years. Within that acquisition of Global Collect context, the Northern European payment market by Ingenico equates to a stands out compared to other markets in the multiple of 16.4x EBITDA or region. Years of consolidation left dominant Nor- 2.3x revenue. Blackhawk’s dic-payment firms and only a few independent acquisition of Parago for players remaining. With the acquisition of Pay- USD 291 million equates to a zone Nordics, Nets secured one of these few multiple of 11.2x EBITDA. remaining independent targets to strengthen its Wirecard paid 15.9x 3Pay’s POS-market position. It is the first acquisition EBITDA in an acquisition val- under the new ownership of Advent/Bain. More- ued at USD 34.4 million. The over, Nordic Capital acquired Samport. It is the enterprise/EBITDA multiple company’s second payment acquisition in a few for FleetCor’s acquisition of months after the acquisition of Eurolines (subject Comdata is 12.0x. to closing). Samport is a niche player with focus on specialised payment solutions for selected Geographically, 49 per cent verticals (e.g. taxis, restaurants, etc.). A com- of the targets were based in bined value proposition of Samport and Eurolines North America (Q3/2014: can be expected as the deal enables both compa- 59%), followed by 34 per nies the ability to expand in the international pay- cent in Europe (Q3/2012: ment services market. Financial terms have not 31%) and 11 per cent in Asia/ been disclosed for either transaction. Pacific. The rest of the world accounted for the remainder. Established industry players are gradually seeking Our observation earlier this to strengthen their representation in emerging, year that investments are high-growth payment markets. The German com- gradually changing from pany Wirecard has taken a pioneering role. After Anglo-American purchasers various acquisitions in Southeast Asia (among to purchasers from Europe others for example PT Aprisma Indonesia and has been confirmed this PaymentLink, Singapore), the company recently quarter. While 61 per cent of entered the Turkish market with the acquisition of all buyers are still from North 3Pay. Thereby, Wirecard continues the conse- America, the share of Euro- quent execution of its emerging market growth pean buyers increased from 19% to 28% over the lap and the online payment target platform. Also strategy. Singapore-based Telr’s acquisition of last twelve months, mainly driven by the fact that of interest is the acquisition of The Logic Group Innovative Payments in the UAE appears in the general attitude towards deal-making has (TLG) by Barclaycard, part of Barclays Bank. Bar- the same context. It is one of the first acquisitions improved significantly, bolstered by investor con- claycard acquired TLG primarily because of its in the region, indicating a growing fidence and risk appetites. gateway solution, in order to close this gap in its interest particularly in online payment

Page 1 payments Insight. Opinion. 6

service providers. Reasons for the lack of acquisi- particular to improve its capabilities for small tions to date have been, on the one hand, the lim- businesses. ited number of small targets for acquisitions available and, on the other hand, a previous focus Initial public offerings (IPO) have played a deci- on organic market entries (e.g. PayPal). sive role in the last quarter, too. Alibaba, although not a payment company, stands out for several Beyond this, mobile payments and commerce reasons, in particular since has remained a 142778230.jpg Shutterstock product acquisitions remain in focus. For exam- private company. The company can now say its ple, Twitter purchased CardSpring, a provider of USD 25 billion record-breaking IPO was the big- electronic coupons, loyalty cards and virtual cur- gest in the world. Nevertheless, questions about a rencies. Twitter could use CardSpring to enable devious ownership structure as well as its affiliate card-linked offers and thus fuel in-tweet com- business system (in which Alibaba does not have merce and offers. In addition, First Data expanded outright ownership or control some major parts of its gift card footprint with the acquisition of Gyft. its e-commerce ecosystem) remain. Also Malay- Through the deal, First Data seeks to accelerate sia’s MOL pursued its IPO ambitions. The online the growth of virtual prepaid cards especially for payment company priced its US IPO at the bot- merchants. Finally, Heartland Payment Systems tom of expectations and raised USD 169 million at Sources: Bloomberg, Mergerstat, Reuters, acquired mobile point-of-sale vendor Leaf, in an enterprise valuation of USD 705 million. WSJ, company publications

Venture Capital

Joris Wetzel American – mainly US-based – startups marketplace’s purpose is to facilitate the flow of Associate accounted for the biggest share of collected ven- money from one party to another in an online ture capital, more precisely 57% of the worldwide platform-based approach. The provider allows total equity funding volume. Europe and Asia the flow of funds for equity and debt capital from Funding Activity secured their first and second runner-up posi- peer-to-peer (P2P), business-to-consumer In the third quarter of 2014, an amazing total of 140 tions by showing 33 and 21 funding rounds, (B2C), consumer-to-business (C2B) and busi- funding rounds were recorded. They account for a accounting for approx. 23% and 15% of the ness-to-business (B2B). Often the business mod- total (disclosed) volume of USD 1.25bn in equity worldwide total equity funding volume in Q3 els include removing traditional banks, which may and USD 478.18m in debt financing. Although this 2014. Regarding the following ranks, funding charge hidden fees, as the middleman, thereby quarter’s funding activity exceeded the previous activity in South America and Australia were allowing financial marketplaces to offer lower quarter’s by 50% regarding quantity; the total (dis- recorded. Unexpectedly, South America showed rates to borrowers and better returns to lenders. four funding rounds, two of them investments in Other business models aim to offer loans to indi- Mexican financial marketplace providers, viduals who have been rated as “not creditwor- accounting for approx. 3% of the worldwide total thy” by banks. equity funding volume. With only two recorded funding rounds – and less than 2% – Australia AvantCredit, one of the fastest growing national gained the fifth rank. online providers of consumer loans (B2C) in the US, announced this quarter’s first-, second- and Investment Trends fourth-largest funding round. Two debt rounds When discussing this quarter’s top funding with incredible volumes of USD 200 million each rounds and the startups behind them, you cannot (one by Jefferies Group, the other by Victoria Park closed) volume went back by approx. 1%. As a con- avoid naming this quarter’s first investment trend. Capital) and a Series C round with a funding vol- sequence, the funding volume per round, with an The boom surrounding financial marketplaces ume of slightly less than USD 75m (by Tiger average of USD 12.23m, decreased by an astound- doesn’t seem to have reached its peak yet. This Global Management). In doing so, Avant Credit ing 33% compared to the previous quarter. Never- quarter’s top four funding rounds can be assigned was able to secure USD 475m. Although the lion theless, Q3 2014 became the most active quarter to this segment. Twentynine funding rounds were share of the funding is based on working capital, it since this #payments section was established. recorded, exceeding the second quarter by one. is a notable amount considering the fact As in all past issues of this newsletter, North As most of you might know, a financial that the company was only recently founded

Page 1 payments Insight. Opinion. 7

in 2012. The additional infusion of capital brings Taking into account the segment’s high funding particular, with a total funding of USD 109m, the company's total funding to over USD 500m. activity, a total of 29 funding rounds achieved by faces high expectations from both investors and With the huge amount of debt and financial market place providers, it can be market participants and similar to Square, these funding, AvantCredit wants to support the growth expected that this trend will continue. will not be satisfied only through payment pro- of its loan portfolio as well as the expansion of its cessing services. Besides iZettle, the Swedish technology and data capabilities. Furthermore, Since VC-funding rounds in Europe are getting startup market attracted a couple of other invest- AvantCredit endeavours to attract top talents to traction and London, in particular, is receiving a ments for companies like Safello (Bitcoin plat- help shape the company’s future. AvantCredit lot of buzz lately as the upcoming global FinTech- form), KnCMiner (Bitcoin wallets and mining states to have a transparent and convenient hub, we are highlighting a few of last quarter’s servers), Tink (personal financial management) application process for their offering of personal investments in the region. Aside from the previ- and FundedByMe ( platform). Addi- loans combined with a technology-driven tional investments ranged geographically from approach. Loan packages are tailored for each Finland (MePIN) to Turkey (iyzico) and France customer based on a scoring system that consists (Weelo) to the Ukraine (Settle) with seed-financ- of several factors. With this, a customer has the ings dominating. opportunity to be provided with the desired loan Although public interest declined a bit after the within a period of one day. The startup supplies public hype surrounding Bitcoin earlier this year personal loans between USD 1k and USD 20k in (analogous to the value of the asset), investors nearly all US states and even operates in the UK are still very bullish on Bitcoin, judging by last under the brand SpringCoin.com quarters funding rounds which mainly went into companies that provide infrastructure such as storage, wallets and exchange platforms. In the third quarter Overall we believe that investor interest in Fin- Tech will remain strong for the rest of the year. In of 2014, an amazing ously mentioned Funding Circle, other well- particular, those types of services that shall be total of 140 known names such as mobile payment companies able to substitute or complement existing finan- funding rounds were recorded. iZettle and SumUp were able to secure additional cial services provided by banks seem attractive They account for a total funding – USD 6,80m and USD 13,0m respec- and will receive attention. tively – to finance their future growth. iZettle in (disclosed) volume of USD 1.25bn in equity and USD 478.18m in debt financing.

The third largest funding was received by Strate- gic Funding Source. The company, which was founded in 2006, is also a financial marketplace provider, yet pursues a different approach than AvantCredit. The US-based startup is a leading provider of direct financing to small and medium- size businesses, not private borrowers. Pine Brook Partners invested a total of USD 110.00m in pri- vate equity in the company. This new investment will provide Strategic Funding Source with access to capital to promote future growth. Following their B2B approach, the company provides work- ing capital to a wide range of businesses such as retailers, restaurants, hotels, and many others by borrowing from banks and hedge funds. Utilising its comprehensive technology platform, Strategic Funding Source can process applications 24 hours a day, increases an SME’s likelihood to receive a loan by offering tailored financing solutions, and can shorten the time required in the standard loan application process.

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Venture Capital Activity & Company Profiles Q3 2014

Target (Country) Round Volume Investor(s) Funding Description (USDm) (USDm) 1 PhilSmile (HK) Seed N/D N/D N/D PhilSmile is a online money transfer service with focus on the Phillipino remittance market.

2 BitPay (US) A 30.00 TTV Capital, Felicis Ventures, Founders Fund, Horizons 32.50 Bitpay is a PSP enabling merchants to accept online Bitcoin payments. Ventures, Jerry Yang, Richard Branson, Index Ventures

3 Moven (US) A 8.00 New York Angels, Standard Bank, Route 66 Ventures, 12.40 Moven provides consumers with mobile payment, banking and financial Anthemis Group, SBT Venture Capital services as a one-stop shop.

4 iZettle (SE) 6.80 Intel Capital, Dawn Capital, Zouk Capital, 108.90 Sweden based iZettle provides a hardware solution for the (mobile) acceptance Hasso Plattner Ventures of peer-to-peer and consumer to business card based payments.

5 Credit Benchmark (UK) A 7.00 Index Ventures 7.00 Credit Benchmark offers a financial platform gathering credit risk information from global banks and aims to improve financial market benchmarks.

6 Xapo (US) A 40.00 Crypto Currency Partners, David Marcus, Jerry Yang, 60.00 Hong-Kong-incorporated and US-based Xapo offers a new new secure bitcoin Yuri Milner, Max Levchin, Emergence Capital Partners, storage solution consisting of an easy access wallet and a locked-down vaul. Yuri Milner, Index Ventures, Greylock Partners 7 Plastiq (US) B 10.00 Great Oaks Venture Capital, Flybridge Capital Partners, 18.30 Plastiq offers online payment services allowing users to use their credit cards Atlas Venture, Khosla Ventures regardless of merchant acceptance.

8 LoopPay (US) Venture 3.00 N/D 13.00 LoopPay provides a mobile wallet application for iOS (plus an additional piece Round of hardware) with which a consumer can make mobile payments at regular mag reader POS. 9 LoopPay (US) Venture N/D Visa 13.00 LoopPay provides a mobile wallet application for iOS (plus an additional piece Round of hardware) with which a consumer can make mobile payments at regular mag stripe reader POS. 10 TradeBlock (US) Seed 2.80 Chris Fischer, Bitcoin Opportunity Fund, Data 2.80 TradeBlock financial service platform providing a virtual currency data Collective, Devonshire Investors, Y Combinator, and analysis services. FinTech Collective, Andreessen Horowitz 11 Funding Circle (UK) C 65.00 Accel Partners, Union Square Ventures, Ribbit Capital, 123.20 Funding Circle operates a marketplace for C2B lending where consumers Index Ventures can lend their money to multiple SMBs in the UK.

12 Zooz (IL) B 12.00 Access Industries, Camp One Ventures, Rhodium, lool 16.50 Zooz offers an online payment solution for websites, Android and iOS apps ventures, XSeed Capital, Blumberg Capital where returning consumers are recognized and presented with a single click check-out across all participating merchants. 13 ModoPayments (US) A 2.00 N/D 2.00 Modo offers an API enabling developers to easy integrate a wide range of payment services into their own mobile app.

14 Cover (US) A 5.50 John McDonald, Mike Greenfield, Scott Belsky, Edward 7.00 Cover is building a mobile payment application that lets user easily Zimmerman, Chris Muscarella, James Altucher, pay for restaurant bills or split bills among a group of friends. Andrew Kortina, Naval Ravikant, Ben Leventhal, Dave Eisenberg, Josh Spear, Lerer Ventures, O'Reilly AlphaTech Ventures, Spark Capital 15 LOYAL3 (US) D 30.20 N/D 50.70 Loyal3 provides an investment platform enabling consumers to invest in IPOs and stock without paying transaction or management fees.

16 Redline Trading Venture 5.00 N/D 12.50 Redline Trading Solutions develops software-based intelligent trading solutions. Solutions (US) Round

17 Taulia (US) D 27.00 SEB Private Equity, DAG Ventures, Lakestar, Matrix 62.70 Taulia offers cloud based invoicing, supplier payment and automated Partners, Trinity Ventures, QuestMark Partners discounting for large purchasing companies.

18 AvantCredit (US) Debt 75.00 Tiger Global Management 29.00 Read more: http://www.crunchbase.com/organization/payrange#ixzz3BnA46xQh

19 AvantCredit (US) Debt 200.00 Victory Park Capital 104.00 Follow us: @crunchbase on Twitter | crunchbase on Facebook

20 WoraPay (LT) Seed 0.54 Entree Capital 0.66 WoraPay provides banks and payment institutions with an mobile payment ecosystem.

21 BioCatch (US) A 20.00 Blumberg Capital, OurCrowd 11.60 BioCatch provides a solutions to prevent online and mobile fraud with its behavioral biometrics technology.

22 Activehours (US) Seed 4.10 Felicis Ventures, Ribbit Capital 4.10 Activehous is a paycheck service, that gets you paid for hours you already have worked, although you are still expexting the latest paycheck.

23 Exchange Corporation (JPN) A 3.30 500 Startups, Cherubic Ventures, Recruit Strategic 5.20 Japan-based Exchange Corporation developed the online payment service Paidy, Partners, CyberAgent Ventures, Arbor Ventures allowing consumers to make a deferred payment without a credit card.

24 Prestadero (MEX) B 0,67 N/D 1.07 Prestadero provides a peer-to-peer online lending platform in Mexico, where consumers can apply for loans without a bank as intermediary.

25 TipRanks (IL) A 3.00 John Nakamura, Roni Michaely 3.00 TipRanks provides a technology-based analyst accountability engine, aggregateing, measuring, and ranking digitally published stock recommendations by analysts.

26 Thinknum (US) Seed 1.00 HKB Capital, 645 Ventures, Signature Capital, Bobby 1.00 Thinknum provides an web-based platform for financial research and analysis Yazdani, Green Visor Capital, 500 Startups, Pejman adressing investors and traders. Mar Ventures

Page 1 payments Insight. Opinion. 9

PayRange A Target (Country) Round Volume Investor(s) Funding Description (USDm) (USDm) 27 (UK) B 6.50 Balderton Capital 6.50 Crowdcude is a UK based crowdfunding platform that allows private Avant Credit A investors withaverage income to participate in equity funding rounds even with small amounts. 28 Koinify (US) Seed 1.00 Danhua Capital Brock Pierce, Park Venture, IDG Capital 1.45 Koinify is a crowdfunding platform with a focus on investments into Spoqa A Partners virtual currency projects.

29 Safello (SWE) Seed 0.25 Bitcoin Opportunity Fund 0.85 Safello is a high secure easy to use Bitcoin platform for crypto-rookies.

30 Sr. Pago (MEX) Seed 1.10 Andy Smith, Defense.Net, Barrett Lyon, Jay Adelson, 1.10 Sr. Pago is a card based mobile acceptance and payment service that Revision3 enables the transfer of accepted funds to a connected MasterCard.

31 Elliptic (UK) Seed 2.00 Octopus Investments 2.00 Elliptic is a high secure easy to use Bitcoin storage and management platform.

EyeVerify ? 32 Dough (US) Venture 25.00 Technology Crossover Ventures 25.00 Dough is an option trading and investment platform that allows ist users Round to adapt investment strategies from professional traders.

33 Deem (US) H 50.00 PointGuard Ventures, Hony Capital 516.90 Deem provides cloud based B2B commerce-as-a-service solutions, e.g. card based offers, for SMBs and multinational companies.

34 TeleSign Corporation (US) B 9.00 Telstra Ventures (AVG) 78.00 TeleSign is and identity verification and fraud detection service that mainly relies on phone numbers.

35 POKK (IND) A 2.50 K Ganesh, Jungle Ventures, SingTel Innov8, 2.50 Pokkt is a content market place that allows users to earn credits by consuming JAFCO Asia advertisers content which they than can exchange for digital goods and content.

36 Wonder Technologies (US) Seed 0.80 K5Ventures, Rui Pereira, Michael Margolies 0.80 Wonder Technologies is an App that links gift cards to payment cards Bril Flint, David Perry, Texas Halo Fund and automacally redeems them at purchase.

37 PayRange (US) Venture 2.80 Philip Nadel, Max Levchin, Osama Bedier 3.20 PayRange developded a BLE-based mobile payment solution for vending, Round parking, transit ticketing, laundry, amusement, and more.

38 AvantCredit (US) Debt 200.00 Jefferies Group 104.00 AvantCredit operates a web based consumer-lending business for short term loans of up to USD 20k.

39 Spoqa (KOR) B 3.90 Bokwang Investment, Daesung Private Equity 3.90 Seoul-based mobile loyalty platform Spoqa operates Dodo Points, a tablet-based loyalty platform for local merchants in Korea.

40 Ngpay (IND) N/D N/D Flipkart N/D Ngpay is an online store aggregator for brands that allows ist users to collect and redeem loyalty points by shopping via the ngpay app.

41 LaunchKey (US) Debt 0.05 N/D 0.75 LaunchKey enables secure user authentication on websites, applications, and other computer systems utilizing a smartphone or smart device.

42 SumUp (DE) B 13.00 Life.SREDA, BBVA Ventures, Groupon 33.00 SumUp provides a hardware solution for the (mobile) acceptance of peer-to-peer and consumer to business card based payments with chip&pin security.

43 Axial (US) B 11.00 First Round, Redpoint Ventures, Comcast Ventures 19.50 Axial is a professional network helping private companies to access capital by connecting them to a qualified network of investment professionals and financial intermediaries. 44 Pollen (US) Venture 27.00 N/D 27.00 Pollen provides C2FO market, a working capital exchange for companies Round all across the world.

45 BlueVine (US) Venture 1.50 N/D 5.50 BlueVine is a online money lender adressing SMEs helping them to Round overcome their short-term cash flow challenges.

46 Zumigo (US) B 6.00 Wells Fargo Startup Accelerator, Aligned Partners, 7.70 Zumigo provides a financial transactions verification service by Intel Capital leveraging location and network data.

47 EyeVerify (US) A 6.00 Wells Fargo Startup Accelerator, Sprint, Wells Fargo & 9.70 EyeVerify provides an eye print verification solution for mobile devices. Company, Samsung Electronics, Qihoo 360 Technology

48 QikServe (GER) Venture 0.88 Scottish Investment Bank, Equity Gap 1.70 QikServe offers a cloud-based mobile payment app for iPhone and Android in the Round hospitality sector.

49 8 Securities (HK) B 9.00 Route 66 Ventures, Leitmotiv Private Equity, Velocity 21.50 8 Securities provides a stock trading and financial management platform Capital Private Equity extended social component that allows investors to interact with each other.

50 Moneysoft (UK) Seed 1.40 N/D 1.40 Moneysoft provides a money management app allowing users to access information from various accounts with banks and other financial institutions.

51 vogogo (CAN) Venture 8.50 Canaccord Genuity Corp, Beacon Securities, Clarus 8.50 Canada-based vogogo is a offering a web-based Round Securities, Salman Partners, Cormark Securities Inc. payments collection service.

52 Capital Float (IND) Seed 1.00 SAIF Partners 3.00 CapitalFloat offers corporate loans and working capital financing for Indian SMEs via fast and convenient online scoring and application.

53 SecureAuth (US) Venture 10.00 Toba Capital 28.00 SecureAuth develops multi-factor authentication and security software. Round

54 Square (US) N/D N/D Victory Park Capital 440.50 Square provides a hardware dongle turning regular smartphones into POS as well as apps for mobile payments and acceptance.

55 FeeX (ISR) B 6.50 Blumberg Capital, Horizons Ventures 9.50 FeeX identifies hidden fees for consumers' retirement savings plans and offers alternative crowd sourced saving plans.

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Target (Country) Round Volume Investor(s) Funding Description (USDm) (USDm) 56 Weeleo (FRA) Seed 0.04 Bpifrance 0.06 Weeleo allows ist users to agree upon the exchange of currencies to an online set exchange rate while exchanging the funds offline.

57 Omise Co. Ltd. (THA) Seed 0.30 East Ventures 0.30 Omise is an online payment provider for the growing e-commerce market in South East Asia.

58 LendLayer (US) Seed 0.40 N/D 0.40 LendLayer is a social lending platform to finance educational bootcamps for aspiring programmers in the IT industry.

59 BlockTrail (NTH) Seed 0,67 BlockCorp 0,67 Blocktrail is a Bitcoin intelligence and research platform.

60 Toopher (US) Venture 0.79 N/D 2.80 Toopher uses smartphones location-based identtiy verification to prevent Round online fraud and identity theft as one source for Risk Management.

61 BitX (IND) Seed 0.80 Carol L. Realini 0.80 BitX provides a Bitcoin storing wallet as well as Bitcoin acceptance services for merchants.

62 GROUNDFLOOR (US) Seed 1.00 N/D N/D GROUNDFLORR is a platform that facilitates asset backed private loans in realestate.

63 Chain (US) A 9.50 500 Startups, Barry Silbert, Kevin Ryan, Scott Banister, 13.70 Chain provides an easy access API to the Bitcoin blockchain that allows Pantera Capital, Homebrew (and more) developers to simply integrate integrate bitcoin protocol.

64 Transactis (US) D 11.00 StarVest Partners, Safeguard Scientifics 36.70 Transactis is an online payment and secure document storage platform that focuses on facilitating bill payments.

65 NextCapital (US) Venture 6.10 N/D 6.10 NextCapital is a full service and easy to use online investment Round and brokerage platform.

66 FlexWage Solutions (US) Venture 3.50 N/D 3.50 FlexWage is a card based payroll service that enables dispurses Round wages and payday lending to a linked credit card.

67 Portfolia (US) A 1.50 Sand Hill Angels, Astia Angels, Life Science Angels 1.50 Portfolia is a startup investment platform for institutional investors and investment rookies.

68 Fundrise (US) Crowd- 0.99 Crowdfunding 34.00 Fundrise is a platform for crowd investments in real estate at funding competitive costs in the US.

69 Mirador Financial (US) Seed 1.50 N/D 1.50 Mirador is a machine learning based risk assessment software solution for online SMB lending providers.

70 Bluedot Innovation (AUS) A N/D N/D 0.92 Bluedot is a B2B software solution for advanced GPS localization and related payment and commerce functionalities.

71 Bitbond (DE) Seed 0.27 Nelson Holzner, Point Nine Capital 0.27 Bitbond is a Bitcoin based peer-to-peer lending platform.

72 Unocoin (IND) Seed 0.25 Barry Silbert 0.25 Safello is a Bitcoin exchange platform that enables offline and paper storage of Bitcoin.

73 CashSentinel (CH) Seed 0.17 N/D 0.65 CashSentinel is a mobile escrow service application for car dealers and their customers.

74 Payfont (UK) N/D 0.17 Scottish Enterprise funding N/D Payfont offers high secure data storage services to prevent identity theft from secure databases.

75 Settle (UKR) Venture 1.50 Life.SREDA 1.50 Settle is a Ukrainian mobile acceptance app that allows users to pay and settle Round their bills in venues with their mobile phone.

76 Acccess Technology Venture 25.50 Tritium Partners 25.50 access is an e-commerce enabler that offers international logistic, Solutions (US) Round as well as localization and payment services.

77 iyzico (TUR) B 1.40 212 Limited 3.20 Iyzico is a enables the acceptance of online payments with fast onboarding.

78 SpotOnWay (ITA) Seed 0.29 LVenture Group 0.37 SpotOnWay is a location based couponing/ voucher solution for small merchants that uses facebook to spread among peers.

79 Clinverse (US) C 9.10 Hatteras Venture Partners 15.60 Clinverse is an online payment service to facilitate manage and compensate Edison Partners participation in clinical trials.

80 Korbit (KOR) A 3.00 Softbank Ventures Korea, Pantera Capital, BAM 3.97 Seoul-based Korbit is South Korea’s largest Bitcoin exchange company. Ventures, Tim Draper, Pietro Dova, Strong Ventures

81 Ayondo (DE) Venture 4.00 Luminor Capital 4.00 Ayondo is a German based CFD trading and investment platform that Round allows ist users to incorporate investment strategies from professional analysts in investment decision. 82 Knox Payments (US) Venture 0.63 N/D 1.60 Knox payment offers online ACH payments via an online interface for partnering Round banks' customers at merchant checkouts at a fixed pricing.

83 Payteller (US) Venture 25.00 ISS Management LLC 25.00 Payteller offers instant issuing, mobile top-up, bill payment and loyalty solutions Round especiallly for underbanked and unbanked in Latin Amerika.

84 Socure (US) A 2.50 N/D 4.70 Socure offers fraud prevention, identity proofing and risk management solutions through scoial scoring for financial institutions and e-commerce merchants.

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Target (Country) Round Volume Investor(s) Funding Description (USDm) (USDm) 85 MakeLeaps (JPN) Angel 0.60 Dave McClure, Richard Chen, Naval Ravikant 0.60 MakeLeaps is online invoicing software for freelancers and businesses in Japan.

86 Visio Financial (US) Venture 1.80 N/D 6.50 Visio Financial Services offers loans for buying, remodelling or refinancing Round properties based on home value and without credit or income check in the US.

87 FreeCharge (IND) B 33.00 ru-Net Holdings, Sofina, Sequoia Capital 33.00 FreeCharge allows it's Indian users to top-up their prepaid mobile plans online and receive coupons in exchange - making the top-up virtually free.

88 AirSig Technology (JPN) Seed 2.00 Foxconn Technology Group 2.00 AirSing Technology developed a authentication app based on an individuals signature written in the air and recorded by using the g-sensors in gyroscopes in smartphones.

89 IEX Group (US) C 75.00 Cleveland Capital Management, TDF Ventures, 100.90 IES Group provides an equity trading marketplace owned exclusively by MassMutual Ventures, Steve Wynn, James H. Clark, hedge funds, mutual funds, family offices and individuals. Franklin Templeton Investments 90 KnCMiner (SWE) A 14.00 Creandum 14.00 KnCMiner offers digital wallets and mining servers for bitcoin and crypto currencies.

91 Strategic Funding Source Private 110.00 Pine Brook Partners 110.00 Strategic Funding Source provides working capital financing and asset (US) Equity backed loans for North American SMEs.

92 SyndicateRoom (UK) Crowd- 10.00 Crowdfunding 10.00 SyndicateRoom is a UK based crowdfunding platform for sophisticated funding investors and high net worth individuals to invest in start-ups and projects.

93 ItzCash Card Ltd. (IND) C 15.00 N/D 15.00 ItzCash Card is a prepaid cards, online payment and gifting company addressing the under banked in India and Asia.

94 Wecash (CHN) Seed 6.50 IDG Ventures 6.50 WeCash is a China based start-up that derives online credit scorings from big data analytics from mobile internet users.

95 Instabank (RUS) Seed 0.05 MasterCard Start Path Accelerator 0.45 Instabank is a Moscow based direct banking app that allows for easy expense tracking, transactions and up to 10% APR interest on balances.

96 MePIN (FIN) Seed 0.05 MasterCard Start Path Accelerator 1.80 MePIN is a mobile 2-factor authentication tool that facilitates high secure procedures like messaging, payments and online account access.

97 Moqom (IRE) Seed 0.05 MasterCard Start Path Accelerator 0.05 Moqom provides fraud and risk management, authentication as well as customized security services for financial institutions and telecoms.

98 ZenCard (PLN) Seed 0.05 MasterCard Start Path Accelerator 1.00 ZenCard is a mobile couponing and loyalty app that uses integration with payment card providers to increase consumer targeting for offline retailers.

99 Cignify (US) B N/D American Express Ventures, Omidyar Network 1.50 Cignify develops marketing and default scorings based on cellphone usage data especially for underbank markets like Africa and Latin America.

100 Red Dot Payment (SNP) A N/D Wavemaker Pacific, Global Payment Fund N/D Red Dot Payment is a Singapore based full scale payment service provider that allows merchants and financial institutions to accept online payments.

101 Scorista (RUS) Seed N/D Life.SREDA N/D Scorista provides qualitative default scorings as a report on an API basis to facilitate lending decisions.

102 Kueski (MEX) Seed 1.30 Core Ventures Group, CrunchFund 1.30 Mexican Kueski provides online short-term micro-loans to Latin Americans.

103 Authy (US) Seed 3.00 Salesforce Ventures, StartCaps Ventures, AngelList, 3.80 Strong authentication service Authy provides two factor authentication Salesforce, Data Collective, Digital Garage, Winklevoss to consumers and businesses. Capital, CrunchFund, Sam Yagan, Aaron Levie 104 Tink (SE) A 4.00 Sven Hagströmer, Sunstone Capital 4.00 Tink is mobile app that enables an individual to playfully manage its personal finances, by linking the app to banks accounts and credit cards.

105 Jimubox (CHN) B 37.20 Magic Stone Alternative, Ventech China, Vertex 47.20 Jimubox is an online P2P lending service in China. Venture Holdings, Matrix Partners China, Shunwei China Internet Fund, Xiaomi 106 AssetAvenue (US) Seed 3.00 Launchpad LA, BAM Ventures, VECTR, NetEase.com, 3.00 AssetAvenue is a leading online P2P lending platform in the real estate sector. Matrix Partners

107 TrueAccord (US) A 5.00 Raymond Tonsing, Hunter Walk, Khosla Ventures, 5.00 TrueAccord offers a data analytics based service to turn debt collections Homebrew, Bryan Johnson, Max Levchin into a recovery and reconciliation process, rather than a confrontation.

108 Auth0 (US) Seed 2.40 K9 Ventures, Bessemer Venture Partners, Portland 2.40 Auth0 provides an Identity-as-a-Service Solution enabling App developers Seed Fund, NXTP Labs to easily integrate authentication and authorisation services.

109 LightSpeed (CAN) B 35.00 Accel Partners, iNovia Capital 65.00 POS software developer LightSpeed develops a mobile payments service.

110 HomeUnion Services (US) A 5.00 Artiman Ventures 5.50 HomeUnion Services is a online platform.

111 (US) Venture 1.00 Nyca Partners 40.00 Payoneer is a corporate pay-out solution that facilitates international online Round payments to suppliers and service providers.

112 FundedByMe (SWE) Seed N/D Link Ventures 0.54 FundedByMe is a Sweden-based crowdfunding platform connecting investors and entrepreneurs.

113 Ping Identity Corporation Series G 35.00 Appian Ventures, Triangle Peak Partners, Volition Capital, 115.00 Ping Identity Corporation provides a cloud-based identity management service (US) W Capital Partners, SAP Ventures, General Catalyst for companies and government organizations. Partners, Draper Fisher Jurvetson, Ten Eleven Ventures, KKR

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Target (Country) Round Volume Investor(s) Funding Description (USDm) (USDm) 114 Gem (US) Seed 2.00 KEC Ventures, Metamorphic Ventures, Amplify.LA, 2.10 Gem provides developers with a Bitcoin platform, eliminating the pain of building James Joaquin, Crypto Currency Partners, BitcoinShop, Bitcoin security infrastructure into their apps. WaveMaker Labs, Baroda Ventures, Idealab, Birchmere Labs, RRE Ventures, Tekton Ventures, First Round 115 Traxpay (GER) B 15.00 Castik Capital Partners, , Earlybird Venture 19.00 Traxpay deleoped a 24/7 dynamic B2B payment solution to accelerate transactions. Capital, Software AG, Commerzbank

116 Robinhood (US) A 13.00 Nasir "Nas" Jones, Ribbit Capital, Jared Leto, Snoop Dogg, 16.00 Robinhood develops a mobile stock trading application with 0% fees for Aaron Levie, Dave Morin transactions by leveraging technology and reducing overhead.

117 Wealthsimple (CAN) Seed 1.90 Christian Lassonde, Impression Ventures, Dan Debow, 1.90 Wealthsimple is an intuitive online investment platform with the mission David Ossip, Roger Martin, Joe Canavan to make investing accessible to everyone.

118 Netero (US) Seed 0.15 N/D 0.15 Netero is a phone based international money transfer service, transmitting cell phone airtime or prepaid store credit.

119 (US) Dept 0.13 N/D 1.50 Patch of Land brings together institutional investors and private borrowers to exchange funds for asset backed loans on their online platform.

120 DipJar (US) Seed 0.42 Bob Mason, Mike Dornbrook, Joe Caruso, Warren Katz, Will 0.42 DipJar is is a mobile acceptance solution with the aim to facilitate tip-giving in Herman, Project 11 stores accross North America.

121 Credit Karma (US) C 75.00 Susquehanna Growth Equity, Tiger Global Management, 193.00 Credit Karma allows users to access their credit filing fore free as well as debt Google Capital management and tools for tracking and optimization of ones personal credit score.

122 Taulia (US) D 13.00 BBVA Ventures, EDBI 75.70 Taulia offers cloud based invoicing, supplier payment and automated discounting for large purchasing companies.

123 Coinify (US) Seed N/D Seed Capital N/D Coinify is a mobile application that compensates it users for receiving adertizements in form of push notifications.

124 InstaMed (US) N/D 15.00 N/D 77.20 InstaMed is an online and mobile payment provider for hospitals and practices that allows patients to easyly pay for treatment or insurance bills and keep track on their expenses. 125 SolidXPartners (US) Seed 3.00 Red Sea Ventures, Liberty City Ventures, Red Swan Ventures 3.00 SolidXPartners enables finacial institutions to invest in and trade Bitcoin and other virtual assets by providing technical access, swaps and advisory services.

126 Prestiamoci (US) Seed 0.57 Digital Magics 1.26 Prestiamoci is a P2P lending platform that crowdfunds loans and allows for diversification by braking down the loan into small tickets/shares among various Investors. 127 Coinplus (LUX) Seed 0.22 N/D 0.41 Coinplus is a provider of secure Bitcoin storage and payment processing.

128 Bionym (CAN) A 14.00 Salesforce Ventures, MasterCard, Export Development 15.40 Bionym develops biometric and authentication technologies and Canada, Relay Ventures, Ignition Partners applications for consumer electronics.

129 BillGuard (US) Conver- 3.50 OurCrowd 16.50 Billguard allows its users to aggregate various credit card accounts and tible monitor their activity and spending behaviour, the spending behaviour then Note is used to generate personalized coupons. 130 Invoice2go (AUT) A 35.00 Ribbit Capital, Accel Partners 35.00 Invoice2go is a service that allows easy issuing and tracking of invoices f or small merchants.

131 Nubank(BRA) A 14.30 Kaszek Ventures, Sequoia Capital 14.30 Nubank is a Brazil based provider of smart credit card that is connected to a mobile app and lets ist users track their expenses.

132 iMoney Group (MYS) B 4.00 N/D 4.00 iMoney Group operates a financial comparison site for consumers that are looking for loans or credit cards, working together with the major banks in Malaysia.

133 The Credit Junction (US) Seed 2.00 GLI Finance 2.00 The Credit Junction is a working capital financing platform for SMEs.

134 OmnyPay (US) Seed 1.50 GIV Management 1.50 OmnyPay is FirstData's online payment provider and a white label solution that mainly addresse acquiring banks.

135 CrowdStreet (US) Seed 0.80 Seven Peaks Ventures, Green Visor Capital 0.80 CrowdStreet allows accredited investors to analyse and jointly invest in real estate across the US via ist platform.

136 Moka (IDO) Seed N/D East Ventures N/D Moka is an Asian mobile acceptance provider that has yet to launch it service.

137 (US) D 9.70 Village Ventures, Union Square Ventures, Andreessen 32.50 Dwolla is establishing a separate payment network for online payments Horowitz, CME Group offering peer-2-peer money transfers as well as B2C payments.

138 Fundrise (US) A 7.00 Haniel Lynn, Debbie Harmon, Michael Gerwiz, Jon Schulz, 41.00 Fundrise is a platform for crowd investments in real estate at Terrence Rohan, Debbie Ratner Salzberg competitive costs in the US.

139 Baremetrics (US) Seed 0.50 General Catalyst Partners 0.50 Baremetrics is an analytics provider that crunches merchants Stripe (PSP) data to help them draw conclusions for their businesses.

140 Duo Security (US) B 12.00 Benchmark 19.00 Duo Security offer easy to integrate 2-factor authentification via smartphone.

Source Innovalue Research, based on publicly available information

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DEAL Activity M&A

Date Target Company (Country) TC Industry Buyer(s) (Country) Transaction Announced value (USDm) 1 3/7/2014 Global Collect Services (NL) Provides electronic payment services Ingenico (FR) 1119.7

2 3/7/2014 TK Global Partners (USA) Provides online payment processing and money Optimal Payments (UK) 210

3 3/7/2014 Global Merchant Advisors (USA) Provides offer payment processing solutions Optimal Payments (UK) 15

4 9/7/2014 Diebold Eras (USA) Provides payment processing solutions for regional banks, CheckAlt Payment Solutions (USA) N/D community banks and credit unions

5 12/7/2014 Caviar (USA) Provides online food ordering and tracking services Square (USA) 100

6 18/7/2014 CardSpring (USA) Provides payment network services Twitter (USA) N/D

7 18/7/2014 Venda (UK) Develops e-commerce business solutions NetSuite (USA) N/D

8 16/7/2014 eGistics (USA) Provides a scalable data archival solution for the Top Image Systems (IL) 18 financial services and healthcare industries

9 21/7/2014 Retail Decisions (UK) Provides card fraud prevention and payment ACI Worldwide (USA) 204.7 processing services

10 30/7/2014 TouchNet Information Systems (USA) Provides commerce management software solutions Heartland Payment Systems (USA) 375

11 23/7/2014 WSILC (USA) Provides banking services Cardtronics (USA) 160

12 31/7/2014 Gyft (USA) Develops a gift card digital platform for consumers First Data (USA) N/D and retailers

13 31/7/2014 MeinProspekt (GER) Provides brochure advertising services Axel Springer (GER) N/D

14 4/8/2014 K.D.K. Softwares (IND) Provides professional tax filings and e-filing solutions Intuit (USA) N/D

15 7/8/2014 Intelligent Capture (UK) Provides document scanning and optical character Proactis (UK) 2.6 recognition services

16 8/8/2014 SafeNet (USA) Develops hardware and software information Gemalto (NL) 890 security products

17 12/8/2014 Nordic (SE) Provides consumer payment acceptance network services Nets (DK) N/D

18 14/8/2014 Comdata (USA) Provides electronic payment services FleetCor Technologies (USA) 3360

19 14/8/2014 Global Bay Mobile Technologies (USA) Provides mobile data collection software solutions Manhattan Associates (USA) N/D

20 14/8/2014 Slice Technologies (USA) Retrieves information from electronic receipts of Rakuten (USA) N/D customer's inbox to create applications

21 15/8/2014 Leaf (USA) Provides mobile point of sale solutions Heartland Payment Systems (USA) N/D

22 18/8/2014 Blockr.io (SLO) Provides block explorer services for online transaction Coinbase (USA) N/D

23 19/8/2014 NagraID Security (CH) Manufactures and markets powered display cards Oberthur Technologies (USA) N/D for the security and identification industry

24 20/8/2014 Maxie Mobile (USA) Provides mobile payment solutions Global Payout (USA) N/D

25 26/8/2014 EFT Source (USA) Manufactures ATM and debit cards for the financial CPI Card Group (CA) N/D payments industry

26 2/9/2014 MTI Money Transfer (UK) Provides money transfer services MoneyGram (USA) N/D

27 3/9/2014 Innovate Payments (UAE) Provides online payment services Telr (SGP) N/D

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Date Target Company (Country) TC Industry Buyer(s) (Country) Transaction Announced value (USDm) 28 3/9/2014 3pay (TR) Offers mobile payment services Wirecard (GER) 34.4

29 3/9/2014 Clear2pay (BEL) Provides electronic payments solutions FIS (USA) 492.7

30 5/9/2014 iSignthis (AUS) Provides online identity authentication and payment Otis (AUS) 0.3 verification services

31 8/9/2014 The Logic Group (UK) Specializes in the secure management of information BarclayCard (UK) N/D and transactions

32 9/9/2014 Nexxo (USA) Provides money transfer solutions for consumers MoneyGram (USA)

33 11/9/2014 GFX Partners (CA) Provides foreign exchange and global payment services AFEX (USA) N/D

34 15/9/2014 Cardlab (USA) Provides customizable prepaid incentive and Blackhawk (USA) N/D rewards cards

35 16/9/2014 Ezidebit (AUS) Provides recurring payment solutions Global Payments (USA) 275.4

36 17/9/2014 Paystation (NZ) Provides online credit card payments service Trade Me (NZ) N/D

37 17/9/2014 Welcome Real-time (FR) Provides solutions for smart payment devices The Collinson Group (UK) N/D

38 17/9/2014 BuyCode (IL) Develops image recognition shopping application SLYCE (CA) N/D

39 18/9/2014 Santa Barbara Tax Products (USA) Provides financial products and processing services Green Dot (USA) 320 to the tax preparation industry

40 18/9/2014 EzeATM (AUS) Specializes in the installation and maintenance of DirectCash Payments (CA) 9.3 automatic teller machines

41 22/9/2014 Brink Software (USA) Provides cloud based point of sale software solutions PAR Technology (USA) 17 for restaurants and cafes

42 22/9/2014 Maxipago (BRA) Provides payment collection services Redecard (BRA) N/D

43 22/9/2014 TechXpress (USA) Provides e-commerce solutions Spendsmart (USA) N/D

44 22/9/2014 Ingram Micro (SE) Provides mobile prepaid airtime services Seamless (SE) 0.6

45 25/9/2014 Parago (USA) Provides promotional marketing services Blackhawk Network Holdings (USA) 291

46 25/9/2014 Samport (SE) Provides payment solutions Nordic Capital (SE) N/D

47 29/9/2014 Shopkick (USA) Develops mobile applications SK Telecom (KR) 200

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About Innovalue Management Advisors

INNOVALUE is a leading strategic management advisory firm dedicated to the financial services industry. INNOVALUE’s clients are global ornational market leaders, regional specialists, innovators and entrepreneurs that have trusted INNOVALUE for over a decade as their preferred advisors. In the three practices - Payments, Banking and Insurance - INNOVALUE has a distinctive industry know-how based on years of experience, deep and tested insights and established methodologies. The industry practices are complemented by two cross-functional service lines: Corporate Finance and INNOVALUE Solutions.

In the payments practice our clients range from high-growth mobile payment startups to established financial institutions or telecom companies and from cutting-edge strategic players to high-profile private equity and venture capital investors. We develop and implement tailored solutions on topics of strategic importance – including Growth, Efficiency and M&A – on engagements across Europe and beyond. Our clients uniquely benefit from the passion of our consultants in the payments industry, through extensive international project experience, methodologies and the use of very current and pertinent data and benchmarks.

Andreas Habersetzer Partner

INNOVALUE Management Advisors Ltd. 3 More London Riverside London, SE1 2RE United Kingdom

E-Mail [email protected] Images: Shutterstock Images:

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