Fntech startups have targets on their backs. Big banks and payment processing companies, propelled by the jump in online commerce during the pandemic, are snapping up software firms that help consumers pay, trade, and borrow online.
Just this week, on the heels of Square’s $29 billion deal to buy Australian installment lender Afterpay, PayPal said it would buy Japan’s Paidy, which also offers “buy now, pay later” services to shoppers. Corporate card startup Brex in August bought Weav, an Israeli ecommerce software developer. And Visa and JPMorgan in June both announced plans to buy fintech startups. These institutions or their competitors, including highly valued startups like Stripe and Klarna and the newly public Affirm, could be in the market for more add-on deals. Below, we identify the holes in their businesses and, based on our reporting, the startups that could fit the bill.