Fintech Consolidation Accelerates as Larger Companies Hunt for Growth

Payment platforms and neobanks are buying their way into new categories after two lean years.

Inside the companies involved, this has been building for months. What changed is that the economics finally became visible from the outside.

Margins are the pressure point. Compute, distribution and support costs all scale with usage, so growth that once looked like leverage now shows up as a line item somebody has to defend quarterly.

Talent is the quiet constraint. The teams able to execute on this are small, well known to each other, and increasingly able to name their price.

For customers, the practical effect is more choice and shorter contracts — a reversal after two years in which incumbents dictated terms.

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