Embedded finance continues to be the driver of fintech growth, with one group of companies building core banking, payments, and other financial technologies, and a larger group leveraging that technology through APIs to build customer-facing businesses. Today, one of the biggest players on the core technology side – Global Processing Services – announced $100 million in funding, a sign not only of the popularity of embedded financing as a business, but also the impact of GPS in space.
Singaporean investor Temasek and US company MissionOG are the only investors in this funding tranche, which comes in the form of an extension of the $300 million investment GPS announced in October 2021, closing the full round at $400 million. Advent International and Viking Global Investors co-led the previous round, giving them a controlling stake in GPS. As with the previous part of the tour, the GPS – which is based on the Isle of Man in England – does not reveal its value today.
The funding will be used to further grow the GPS business – which includes a range of fintech services such as payments, direct debits and standing orders; Virtual cards, portable wallets, fraud prevention; account management; BNPL cryptocurrency management and more (these are sold under the GPS Apex brand).
Specifically, the company would like to expand further into Europe and Asia Pacific, as well as into more emerging markets across the Middle East and Africa; And you want to bring in new products. (In particular, there are no loan products in the mix at the moment, so this could be one area he’s exploring; insurance could be another, as well as solutions tailored to specific sectors.)
The reason for investment and investor interest is that the GPS, and the area in which it is active, has seen a significant increase in activity. On the other hand, new banking services have been growing in popularity (and credibility) among consumers and businesses; On the other hand, we’ve seen an ever-increasing range of non-fintech companies (such as telcos and retailers) exploiting the concept of embedded finance to add new features and revenue streams to their own platforms.
Overall, consumers and businesses have achieved a major shift in carrying out all of their financial activities online as the Covid-19 pandemic takes hold of the world, and even if it abates, it looks like they will never fully return to their business. analog methods. This has had an indirect impact on project financing for the entire fintech sector. Just yesterday another big fintech player, payments startup Checkout, raised $1 billion with a valuation of $40 billion.
GPS itself focuses primarily on those who work directly in the fintech space, with its clients including Revolut, Starling, Curve, Zilch and Paidy. It said its services are used today in 48 countries and that last year it processed more than 1.3 billion transactions, with 190 million cards issued so far.
“GPS is an innovative technology company, and we believe its unique location at the heart of the global payments system ideally positions it to power the next generation of financial services,” Jane Lockhart, General Partner at MissionOG, said in a statement. “With the deep network and experience MissionOG brings to the table, we look forward to being a trusted and valuable partner for Joan and the entire team.” Notably, Lockhart is taking on a role as Head of GPS with this investment.
“The scaling up of this latest round of investment is an important step forward for the company and a strong endorsement of our strategy,” added Joanne Dewar, CEO of GPS. “We are a company that has grown rapidly in recent years, driven by our commitment to innovation and offering a single scalable technology platform. The expertise that our new partners bring to GPS will be invaluable as we enter the next phase of geographic expansion and technological innovation.”