Payments

The growth in online payments make payments businesses attractive assets to hold and develop

Marbanc International places importance of well-run payments companies due to their attractive earnings multiples, ongoing revenue and ability to scale internationally.

Payments companies can facilitate not just the provision of transaction settlement services, but also the provision of credit. Credit can often be extended to clients of payment companies using detailed analytics, minimising (and sometime altogether eliminating) the risk of default. This results in the potential for substantial value to be derived from investing in payments business.

What we look for

When evaluating opportunities to invest in payments businesses we tend to place value on:

• Dependencies of cash flows

• Adherence to regulatory standards

• Opportunities to increase margin by increasing regulatory deposit capital

• Credit opportunities arising from customer analytics and profiling

• Strength of management

• Availability and timing of potential exit opportunities

Expertise

Marbanc International’s team has experience in evaluating and investing in businesses that provide payments services. We are able to critically analyse risks, opportunities and whether these assets make sound investments.

Transaction size

Generally speaking, Marbanc International will consider investments in payments-related assets in the range of $1 million to $25 million. Larger transactions may be syndicated with third-party funding sources.