Venture-backed payments companies are gaining on incumbents.
As online shopping continues to boom and more businesses are using online payments, some payments startups are becoming well established.
For example, Alipay’s parent company, Ant Financial, has raised upwards of $19B since 2015. Alipay processed more payments in a single month than PayPal processed in all of 2017 ($451B), according to reports.
Others are seeing big late-stage venture investments as they scale up. Stripe raised $245M in September at a $20B valuation, up from a $9.2B valuation two years earlier.
Publicly traded players like Square and PayPal are acquiring companies at a fast clip to branch into new distribution channels. Another payments player, Adyen, has seen its stock jump 70% since its June IPO.
While some payments startups are already mature, the space is seeing new companies cropping up to take advantage of niche opportunities.
Private payments tech companies have raised $30B+ since the start of 2014, with a whopping ~$17B raised in 2018 alone, according to CB Insights data.
We used CB Insights data to identify 125+ private tech companies disrupting and enabling payments.
We define payments companies as those which directly enable the transfer, acceptance, and processing of money B2B, B2C, P2P, and across borders.