Rev, Searchlight Capital and Netspend | August 08, 2022
Rêv Worldwide, Inc., an international fintech company, and Global Payments, a leading worldwide provider of payment technology and software solutions, announced that Rêv, in partnership with funds advised by Searchlight Capital Partners, L.P., has entered into a definitive agreement to acquire the Netspend consumer business from Global Payments in an all cash transaction valued at $1 billion. The acquisition brings back Netspend’s founders, Roy and Bertrand Sosa, who also founded Rêv. The Sosa brothers look to leverage the strategic assets of the two entities to build a global, high growth company that delivers on a mission of financial empowerment and product innovation.
For Searchlight, this transaction represents another exciting partnership with dynamic fintech entrepreneurs while also being able to support growth and innovation for consumer financial services to underserved markets. With this sale, Global Payments delivers on its commitment to divest itself from Netspend’s consumer business, allowing the company to focus on its core B2B operations and growth opportunities with Rêv as a partner.
Since the Sosas founded Netspend in 1999, the company’s consumer business has developed into a clear industry leader in the prepaid and debit card space serving millions of customers nationwide, processing hundreds of billions of dollars of cardholder purchases, and established the largest retail partner network with over 130,000 locations nationwide where consumers can load their prepaid and debit card products. Netspend’s consumer products are also available online via direct-to-consumer mobile and web channels.
“We’ve gone full circle, launching programs with partners around the globe in our journey to provide innovative financial services to underserved mass markets. We are very excited by the opportunity to partner with the Netspend consumer team and Searchlight as we deliver new products, expand into new markets and add more value to customers across the world,”
- Roy Sosa, Chairman and Chief Executive Officer, Rêv
Christopher Cruz, Partner, Searchlight, added “The characteristics of this investment are rare to find. Combining an industry leading operation in Netspend’s consumer business with modern platform technology and digitally native solutions from Rêv unlocks great growth potential by meeting the needs of a significant and sizable market. We look forward to partnering with Roy, Bertrand, and the Rêv team as they continue their mission to financially empower underserved consumers through fintech innovation.”
According to a recent industry report, the global market for Prepaid Cards, estimated at US$1.6 Trillion in the year 2020, is projected to reach US$2.7 Trillion by 2026, growing at a CAGR of 9.6% over the analysis period.
Leveraging its proprietary multi-currency payments and loyalty product platform, Rêv provides mobile-first payment solutions and offers banking-as-a-service capabilities for partners around the world, such as Etihad Airways, Itaú Private Bank, LATAM Airlines; as well as direct-to-consumer branded products owned and managed by Rêv, such as the recently launched X World Wallet currently available in the U.S.
For Bertrand Sosa, President of Rêv, “The market opportunity for Netspend’s consumer business has always been massive, as evidenced by the history of growth the company has experienced. Now we have a chance to expand upon it globally by leveraging unique synergies we bring along with our entrepreneurial spirit.”
The transaction is expected to close in the first quarter of 2023 subject to relevant regulatory approvals, and customary closing conditions.
Jefferies LLC is serving as lead financial advisor, and Nomura Securities International, Inc. is serving as financial advisor to Rêv. Paul, Weiss, Rifkind, Wharton & Garrison LLP is representing Searchlight, Gunderson Dettmer is advising Rêv.
Evercore is serving as financial advisor to Global Payments, and Wachtell, Lipton, Rosen & Katz is representing Global Payments in the transaction.
Rêv is a fintech company, founded by prepaid debit industry pioneers Roy and Bertrand Sosa, dedicated to delivering innovative payment experiences to consumers worldwide. Its solutions are powered by the company’s proprietary multi-currency and multi-language payments processing platform. With vast experience pioneering a number of payment industry firsts, Rêv is focused on the international banking & travel sectors. Rêv has partnered with companies across the globe to launch products in North America, Latin America, Europe, the Middle East, and Asia-Pacific.
Searchlight is a global private investment firm with over $10 billion in assets under management and offices in New York, London and Toronto. Searchlight seeks to invest in businesses where its long-term capital and strategic support accelerate value creation for all stakeholders.
Netspend is a leading provider of payments and financial solutions for consumers and businesses. From prepaid and debit card solutions to digital account and money movement services, Netspend has a broad suite of products and technologies that deliver exceptional experiences for its customers and business partners.
About Global Payments
Global Payments Inc. is a leading payments technology company delivering innovative software and services to customers globally. Our technologies, services and team member expertise allow us to provide a broad range of solutions that enable our customers to operate their businesses more efficiently across a variety of channels around the world.
Headquartered in Georgia with approximately 25,000 team members worldwide, Global Payments is a Fortune 500® company and a member of the S&P 500 with worldwide reach spanning over 170 countries throughout North America, Europe, Asia Pacific and Latin America.
CORE BANKING,FINANCIAL MANAGEMENT
FinTech Automation and Mastercard | August 08, 2022
FinTech Automation announces it has been selected as one of the technology partners for open banking within Mastercard’s Engage partner network. The Engage program has developed a network to provide businesses easy access to technology partners that can quickly build and deploy open banking solutions for payments and lending decisioning at scale.
With the rapid adoption of open banking (i.e., consumer-permissioned data access) and digital tools across financial services experiences, FTA has been selected by Mastercard as one of the premier technology partners to spur innovation through access to its open banking platform, from lending to payments to financial management.
“As we move from the information to the digital age, how we move information is as important as the data itself, Mastercard and FinTech Automation are key to that movement.”
-David Park, CEO at Fintech Automation
FTA allows firms to build a fully digital financial hub with little to no code and, through open banking, allows businesses to establish direct consumer-permissioned connections with their customers’ bank accounts. Through these consumer-permissioned connections, businesses can verify accounts for payments and payouts, check balances to reduce payment failures and cut fraud by confirming bank account ownership. This has vastly improved the payment experience for both the businesses and their customers.
Mastercard is excited to be partnering with FinTech Automation on deployment of open banking solutions that are designed with security at the center and will help to meet consumers’ financial needs and enable choice, Together, we can enable innovation that will increase financial inclusion and expand access to digital services across the globe,said Andy Sheehan, EVP, U.S. open banking at Mastercard.
FinTech Automation’s inclusion in the Engage partner network translates into fewer contracts, faster customer access, enhanced data security, and heightened overall flexibility to better leverage Mastercard’s robust open banking services.
About FinTech Automation
FinTech Automation is a Dallas, TX-based financial technology company dedicated to building a fully digital financial experience with little to no code. The FTA UniFi Platform is the foundational component - or building blocks - to help our clients drive innovation and business growth without worrying about the technology that supports it. The UniFi platform offers banking, payments, compliance, and wealth management Software as-a-Service applications, which are integrated with over 40 partners to offer analytics, databases, open banking, tools for application development, artificial intelligence, machine learning, and robotic process automation.
CORE BANKING,MOBILE BANKING
Monument Bank and Persistent | August 03, 2022
Monument Bank, UK's first neo bank focused on the needs of the ~4.8 million 'mass affluent', has partnered with Persistent Systems, a Global Digital Engineering provider to build a bespoke, cloud-native digital banking platform for lending and deposit services to support Monument's ongoing operations. Monument's target clients are usually pressed for time and often feel underserved and undervalued by other banking providers. Monument's mission is to help its clients prosper and optimise their time by offering smart, efficient and flexible solutions.
Persistent was engaged in the designing and planning of Monument's technology systems and subsequently helped construct the Bank's bespoke systems architecture using a flexible building block approach. This approach enables new components to be added and swapped over time to take advantage of the latest innovations, allowing Monument to choose and integrate multiple SaaS based core component technologies.
Monument is dedicated to providing exceptional, high-value customer service, enabled by a host of innovative, industry verticalised, cloud technology solutions. Persistent has been instrumental in advancing the Bank's strategic goals by helping to build the Bank's architecture that combines services with an adaptable, cloud-based platform, including components to provide core banking, CRM, payment services, AML/KYC, general ledger and regulatory reporting.
Monument is focused on the 'mass affluent' client market, which includes business professionals, entrepreneurs, and property investors. Having received its full banking license in November, Monument quickly launched its property investment lending and an initial range of savings products using advanced in-app capabilities for client interactions. It will continue to enhance its range of products and services to serve the evolving needs of its mass affluent clients.
"Monument's ambition has always been to create a significant financial institution for the mass affluent market in the UK, recognising the future opportunities to better serve the needs of the mass affluent in other jurisdictions."
-John Saunders, Chief Commercial Officer, Monument Bank.
Becoming a bank was a huge challenge but we were delighted to achieve this during a pandemic. It requires significant investment of both time and money to accomplish and it didn't make sense for us to take on the journey alone. We wanted a solutions partner to help us bring Monument to life and it was evident from our discussions with the Persistent team that they not only had a very strong understanding of the banking ecosystem, but were willing to build a strong partnership with us from the get-go. As a result, we have built an integrated ecosystem and platform that not only supports Monument, but also has the potential to power other banks in the future and with a partner like Persistent, we can rapidly enable that, saidSteve Britain, Chief Operating Officer, Monument Bank.
Customers today want simple and seamless experience. Modern, improved and automated process plays a crucial role in meeting these expectations. Neo banks such as Monument can provide a tailored, specialised offering, giving their customers the flexibility and services they need. However, the architecture required to deliver simple and seamless experiences is complex, which calls for a trusted partner to help engineer and integrate the technology that makes it possible. Our 'digital mosaic' approach enables technology solutions that simplify processes and offer flexibility to the customers. Thus, allowing Monument to accelerate its development and focus on building a substantial mass affluent business, saidJaideep Dhok, SVP & General Manager, Banking, Financial Services & Insurance, Persistent.
The company takes its name from the Monument, a globally recognised commemoration of the Great Fire of London and celebration of the rebuilding of the capital. It represents the end of the old era and a transition to modernity and the future as wooden buildings were replaced with the newer, stronger structures that are now synonymous with the City's longevity and security. And many people don't appreciate the Monument was also built to serve as a giant telescope to enable a level of vision that didn't exist previously.
With over 21,500 employees located in 18 countries, Persistent Systems is a global services and solutions company delivering Digital Engineering and Enterprise Modernization. Persistent was named to the Forbes Asia Best Under a Billion 2021 list, representing consistent top-and bottom-line performance as well as growth.