Payments Dive
When Mastercard agreed to acquire cybersecurity firm Recorded Future in September for $2.65 billion, the credit card company made its intentions clear: It said it’s seeking to defend the “global digital economy.”
As the payments industry players become increasingly digital and tech savvy, they’re building up their software arsenal and technology capabilities to compete in an increasingly digital marketplace.
Less than a month later, Mastercard made another acquisition, this time a tech company called Minna Technologies, which manages subscriptions through bank apps.
Purchasing technology and software firms has become a trend among payments companies, as they look to expand their technology stacks while simultaneously securing digital systems.
“They’re looking to find more ways to be a one-stop shop,” said Sam Wares, director of client success at The Strawhecker Group.
The firm, known as TSG, tracks payments mergers and acquisitions. This year is shaping up to be a busy one in terms of M&A volume, with about 62 deals announced through mid-October, according to TSG.
Deal-making this year will likely result in a slightly higher annual tally than for 2023, when there were 72 deals done, Wares said. The Fed’s recent interest rate cut could spur even more activity in the remaining months of 2024 and into 2025.
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