How fintechs are responding to their falling valuations

From American Banker:

Michael Nagle/Bloomberg

Payment companies have not been immune from the correction that has hit the stock market and privately held companies across almost all industries.

The run-up in investments, high valuations and initial public offerings that followed the increase in digital payments in the pandemic’s early stage is now correcting. That decline is being exacerbated by economic pressures such as a potential recession and geopolitical tensions.

Lingering inflation could also cause a broader reduction in spending, hurting payment revenue and placing added downward pressure on fintech investments. The economic slowdown is already impacting card incentives, adding pressure to fintechs in sectors such as buy now/pay later, where there’s already a concern over run rates, a lack of profitability for many firms and potential delinquencies among borrowers if there were to be a recession.

Here’s a look at some of the publicly listed and privately held payment companies, how their valuations have changed during the market volatility downturn, and their recent  moves to deploy new payment technology. Unless otherwise noted, these firms did not offer comment.

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