Key European PayTech investment stats in 2023:
• European PayTech companies raised a combined $1.5bn in 2023, a 81% drop from 2022
• European PayTech deal activity totalled at 189 transactions in 2023, a 45% decline from 2022
• The UK dominated European PayTech deal activity with a 40% share of total deals
In 2023, European PayTech companies faced a significant decline as companies raised a collective $1.5bn, representing a 81% drop from the previous year’s figures. The overall deal activity in the European PayTech sector also witnessed a substantial downturn, with only 189 deals completed in 2023, marking a 45% decrease from the levels seen in 2022.
Sumup, a point of sale technology provider, had the largest European PayTech deal during 2023, after raising $307m in their latest Venture round, led by Sixth Street. The funding will be used to broaden its global presence and enhance its array of financial products and services for its four million small business customers. The recent infusion of growth funding comes on the heels of SumUp securing a $100m credit facility from Victory Park Capital in August. This initial funding injection was intended to support the launch of a cash advance product aimed at merchants in the UK and Europe. The latest funding round comprises a blend of equity and debt, although SumUp has not disclosed the specific breakdown. Notably, the company’s valuation remains at €8bn, as it was in June 2022. This financing round arrives following a year marked by significant progress for SumUp. The company has achieved positive EBITDA since the fourth quarter of 2022 and reported impressive year-over-year revenue growth exceeding 30%.
The UK was the most active PayTech country in Europe during 2023 with 75 funding rounds, a 40% share of all deals. Germany was second with 19 transactions, a 10% share of total deals and France was third with 17 deals, a 9% share.
By 2024, the total transaction value in European digital payments is expected to reach $2,194bn, with an anticipated annual growth rate (CAGR 2024-2028) of 8.81%. By 2028, the market is projected to have a total transaction value of $3,076 bn, reflecting the evolving landscape of digital payment adoption within Europe.
Cross-border payments have come under the spotlight recently due to their critical role in global commerce. In the European Union, regulators have been driving the push for instant euro payments, aiming to streamline transactions and stimulate cross-border economic growth. This initiative aligns with the G20 Roadmap’s global efforts to enhance cross-border payment systems and promote greater interoperability. The COVID-19 pandemic has accelerated the digitalization of payments, with over half of organizations worldwide reporting increased use of Automated Clearing Houses (ACH), digital wallets, Real-Time Payments (RTP), and virtual cards, displacing traditional methods like checks and cash. Both public and private payment systems and regulators are recognizing the efficiency and security benefits of these digital platforms, further fueling this transformative trend.
![Temenos (SIX: TEMN) today announced that National Bank of Iraq (NBI), part of the Capital Bank Group, has successfully gone live with Temenos core banking and payments. NBI, which has 27 branches across Iraq, offers a comprehensive range of services to individuals and businesses in the country. Since 2005, NBI has been majority owned by Capital Bank, one of the top financial institutions operating in the Jordanian and regional markets, with assets of approximately JOD 7.6 billion[1]. With this implementation, NBI moved from its legacy systems onto the same core banking platform as other entities in the Capital Bank Group. This will enable NBI to operate more efficiently and integrate seamlessly with other systems to develop new products faster and deliver an improved customer experience. Capital Bank Group is a long-standing Temenos customer with other entities in the Group including Capital Bank of Jordan, Bank Audi, Société Générale Bank Jordan and NBI Saudi Arabia, already on the Temenos platform. NBI also becomes the first part of the group to adopt Temenos Payments, which enabled the bank to process more than 100,000 transactions of incoming and outgoing domestic and international payments in the first 15 days of operation, with a 99% straight-through processing rate. The migration to the Temenos platform for core banking and payments at NBI was completed in under 12 months thanks to Temenos’ pre-configured banking and payments capabilities and APIs which reduced the need for complex customizations, as well as close collaboration between Temenos, NBI, Capital Bank and delivery partner ITSS. This success was recently recognized in the IBS Intelligence Innovation Awards, with Capital Bank winning ‘Best Implementation of Core Banking Services'. The implementation at NBI follows several other successful transformation projects with Temenos for Capital Bank in the last few years, including the launch of NBI’s branch operations in Saudi Arabia in just 45 days, as well as the integration of Bank Audi and the former Jordanian operations of Société Générale, each of which was achieved in under four months. Collectively, these projects helped Capital Bank to increase operational efficiency by more than 50% within three years, bringing significant cost savings and an improved customer experience. With faster, more accurate processing and immediate service requests, the bank has maintained high customer retention rates and a reputation for service excellence. Izzidin Abusalameh, Chief Operations Officer, Capital Bank Group, commented: “This achievement marks a significant milestone in our digital transformation journey and positions us as a leading player in the banking industry. We have seamlessly transitioned the National Bank of Iraq to a cutting-edge core banking system which will not only enhance operational efficiency but also support providing our customers with a superior digital banking experience. Our continued partnership with Temenos has not only provided us with an advanced technological platform but has also facilitated a culture of flexibility and adaptability, enabling us to execute our ambitious growth plans.” Lee Allcorn, Managing Director, Middle East & Africa, Temenos, said: “Congratulations to National Bank of Iraq and the Capital Bank team on this successful implementation that gives NBI business agility and the same modern technology platform and ability to deploy fast with pre-configured banking capabilities as the rest of the group. With Temenos, Capital Bank Group is future-ready, and we are proud to support them as they continue to innovate and leverage our platform to grow sustainably and enhance the banking experience for customers.”](https://fintech.global/wp-content/uploads/2024/04/rupixen-Q59HmzK38eQ-unsplash-2-218x150.jpg "Flutterwave teams up with Acquired.com to streamline outward remittances in EU and UK")
