Green Dot and Flywire poised for potential sale amid industry consolidation

Embedded payments and software payments companies, such as Green Dot and Flywire, have announced strategic reviews, indicating they may be up for sale amidst increasing merger and acquisition activities in the payments sector. These reviews reflect a possible consolidation strategy as market volatility and decreased valuations have pressured these firms. According to reports, vending payments software firm Cantaloupe is also considering a sale. In contrast, major players like Shift4 Payments and American Express are actively acquiring businesses, boosting their geographical footprint and service offerings. The market’s shift is rooted in declining public valuations and a growing need for companies to demonstrate profitable growth. Several executives, including those from Mastercard and Payoneer, have expressed intentions to pursue acquisitions, emphasizing a strategic approach toward expanding capabilities and market presence. Despite challenges, the sector shows a slight uptick in global deals, with an expected continued increase through the year.