Payments Consolidation Drives Tech Innovation (And Vice Versa)

In Her Latest Column, Chargebacks911® COO Says There’s Value in Consolidation

There’s been a trend toward consolidation in the payments space over the last two years. While seeing one acquisition after another could give some industry figures pause, Chargebacks911® COO Monica Eaton-Cardone says this trend is actually a positive move.

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Mastercard and Visa have been acquiring multiple players in the payments industry. Their moves may seem strange at first, but as Monica explains, there’s definitely a strategy to these moves. “The slew of acquisitions among these smaller, more specified brands speaks to the need to remain relevant in the payments space, even as that space transforms,” she explains.

The payments space is growing more decentralized. We have what Monica describes as “an a la carte payments environment.” Major brands acquiring smaller service providers may provide some stability to an otherwise chaotic situation, with the end result being benefits for everyone involved.

“These fintech acquisitions offer benefits for both parties. The established organizations gain the benefit of agile and innovative technologies to add value to their existing services. In exchange, fintech firms gain the benefit of global reach and can fend off competition and enter new markets more easily. Acquisitions won’t drive innovation directly on their own; they can, however, make the transition to new technologies easier to scale, market and normalize.”