Public payments incumbents are increasingly investing directly in private markets, participating in a high of 45 deals totaling $2.2B in 2019.
Payments markets are some of the largest in the world. According to CB Insights market sizing data, the global digital payments market is expected to grow to $2.4T by 2027.
To capitalize on this growth, public payments incumbents are increasingly investing directly in private markets, participating in 45 deals totaling $2.2B in 2019. Incumbents invest in private markets for a number of reasons, including financial gain, an inside view into emerging trends, and deeper partnership opportunities.
However, with Covid-19 adding global uncertainty and negatively impacting public company valuations, investing may slow down as cash is reallocated to other parts of the business.