With the acquisition, Mastercard plans to accelerate the expansion of Mastercard Bill Pay into Latin America. Here are the top-line bullets you need to know.
Mastercard, a multinational financial services company, has acquired Arcus, a payments-as-a-service (PaaS) startup, for an undisclosed amount.
WHO ARE THE PARTIES TO THE DEAL?
- Arcus: New York-based Arcus is a fintech firm that provides bill pay and cash-in, cash-out services to billers, retailers, fintech companies, and financial institutions in the US and Mexico. Arcus has over 100 clients, including Santander, 7-Eleven, Walmart, BBVA, and Rappi. The startup is supported by a team of more than 100 employees.
- Mastercard: New York-based Mastercard is a financial services provider that maintains operations across more than 210 countries. Its products include debit, credit, and prepaid cards that are offered under the company’s Mastercard, Maestro, and Cirrus brands. The company reported generating $15.3B in revenue in FY’20 and a net income of $6.4B. Mastercard is supported by a team of 21,000 employees globally.
Source: Arcus
WHY DOES THE MARKET MATTER?
- The global payment-as-a-service (PaaS) market is expected to reach a value of $25.7B by 2027, growing at a CAGR of 16.9%, according to Grand View Research.
- The increasing adoption of digital wallets and the widespread shift to cloud-based models to cut costs are also driving significant growth in the PaaS market.
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