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FinTech Infrastructure

Democratizing financial technology with a suite of API-based solutions

Overview

Leveraging APIs to develop a wave of new FinTech solutions

Financial Technology (FinTech) is rapidly replacing in-person financial services with software and apps that provide banking, lending, payments, and investment management. The global financial crisis of 2008 led to distrust in legacy banks and opened the door to new consumer-facing FinTechs. This shift in consumer behavior has led to industry demand for FinTech infrastructure, a group of key integrations and application programming interfaces (APIs) that allow companies to build FinTech products and services.

Building infrastructure in-house can be challenging as it may require integrations across multiple organizations that each offer a range of products and services that must be handled separately and on a case-by-case basis. For example, a single bank may offer savings accounts, lending services, mortgages, and credit cards with each product requiring its own technical infrastructure. Therefore, a growing number of FinTech companies are turning to FinTech infrastructure-as-a-service (IaaS) providers. IaaS providers build common infrastructure platforms for a dedicated purpose (such as banking, lending, payments, etc.) which can be used by multiple enterprises to build their respective FinTechs.

What's driving this industry?
Market Sizing

The US FinTech open banking API and payment infrastructure market could reach USD 25 - 36 billion by 2026

Conservative case

USD 25.5 Bn

Base case

USD 30.9 Bn

Expansion case

USD 35.9 Bn

USD billion0510152025303540202120222023202420252026
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COVID-19 IMPACT

FinTech infrastructure has benefited from a growing number of corporations developing their own FinTechs to meet the Covid-19 led digitization across industries. 

  • TrueLayer’s payment initiation services enabled by Payments API grew 600x in 2020. 

  • Roostify saw 250% YoY growth in the number of applications submitted through its platform in 2020.

  • Stripe fast-tracked support for telemedicine providers in the US to help combat the pandemic. 

  • Flutterwave’s revenue rose over 100% YoY in 2020.

View detail

Market Mapping


The financial technology (FinTech) infrastructure industry primarily consists of organizations offering banking and/or payment-related infrastructure services. Large incumbents commonly offer a mix of banking and payments infrastructure while disruptors typically specialize in a dedicated market segment of infrastructure, with only around one-in-ten startups providing services across multiple segments such as Plaid, Amount, and Modulr. The investment and financial management services segment has the smallest number of pure-play startups with a roughly 1:1 ratio compared to more diversified FinTech infrastructure providers.

Most of these disruptors in the growth and early stages with less than one-tenth in seed or pre-seed stages, indicating a somewhat mature industry.

Incumbents
Growth
Early
Seed
Pre-Seed
Banking services
?
Payment and subscription management
?
Fraud prevention
?
Lending-as-a-service (LaaS)
?
Investment and financial management services
?
Lemon.markets
Lemon.markets
Lemon.markets
Lemon.markets
Lemon.markets
Visa
Mastercard
Goldman Sachs
Envestnet
Fiserv
BBVA
SoFi
Calyx
The Bancorp
Green Dot
Block
Klarna
Cross River Bank
Plaid
Thought Machine
Deserve
Marqeta
Global Processing Services
MX
Mambu
Solarisbank
Amount
TrueLayer
10x Future Technologies
Pollinate
Modulr
Prime Trust
Unit
Railsr
Nymbus
Enfuce
Meniga
Omnio
Synapse
Moven
Bankable
Finastra
Q2
i2c
Raisin DS
Clear Bank
GoCardless
Pismo
Lithic
FintechOS
Token
Ohpen
Kevin.
Alviere
Yapily
Mantl
Narmi
Extend
Savana
Bond
Treasury Prime
Central Payments
Volt
Griffin
Banked
ClickSwitch
Solid
Vyne
Rize
Dapi
Salt Edge
NovoPayment
Transcard
Cleareye.ai
Ecospend
Orenda
Weavr
Highnote
Imprint
Synctera
Productfy
Victor
BankiFi
Hydrogen
Toqio
Visa
Mastercard
PayPal
American Express
Goldman Sachs
Fiserv
The Bancorp
Green Dot
Block
Fidelity Information Services
Stripe
Checkout.com
Mollie
Airwallex
Rapyd
Zuora
Flutterwave
Chargebee
Global Processing Services
PPRO
Flywire
Paddle
Nium
Adyen
Stax
Form3
Modulr
BlueSnap
Currencycloud
Thunes
Dwolla
ECOMMPAY
i2c
GoCardless
Finix Payments
Balance
Alviere
Lemonway
DEUNA
Gr4vy
CellPoint Digital
Tilled
Imburse
Routefusion
Verituity
Weav
Imprint
Sila
Qolo
Park Place Payments
Six Clovers
WhenThen
BBVA
Stripe
Socure
Alloy
Veriff
Sardine
Verituity
Sila
The Bancorp
Plaid
Blend
Parafin
Modulr
RooStify
Pinwheel
EarnUp
Rightfoot
DigiFi
Faire
Floify
Pngme
Canopy Servicing
Artis
SoFi
The Bancorp
Plaid
DriveWealth
Modulr
Moven
Apex Clearing
Clear Street
Sharegain
Alpaca
Upvest
Sensibill
Atomic
Railz
WealthKernel
Delio
Spinwheel
Banyan
Weav
Lemon.markets
Savvy

The Disruptors


Payment and card issuing infrastructure providers Stripe, Marqeta, Flywire and Zuora dominate the industry

As the highest valued venture-backed private company in the US (as of May 2021), Stripe is the largest financial technology (FinTech) infrastructure provider in terms of market value with a USD 95 billion valuation following a March 2021 USD 2 billion fundraise. Next comes publicly listed infrastructure providers, Marqeta (card issuing infrastructure provider) and payment infrastructure providers, Flywire and Zuora (payment infrastructure provider), valued at around USD 14 billion, USD 3 billion, and USD 2 billion, respectively, as of August 2021. In addition to funding, these companies also boast strong geographic reach and large enterprise clientele, relative to peers.

Pureplay payment and banking infrastructure providers are the highest funded segments in the FinTech infrastructure industry, accounting for a significant share of the highest funded companies. Moreover, lending platform, Blend, as well as the more diversified Plaid and Solaris Bank, also featured among the highest funded.

These disruptors tend to compete with peers on integrations, geographic presence, and services offered within the segment. Notably, disruptors in the banking infrastructure segment tend to benefit over incumbent banks’ infrastructure-as-a-service (IaaS) offerings as disruptors typically do not have conflicts of interest with infrastructure users, which themselves are typically banks and financial service providers.

Banking services

?

Disruptors

?
Funding in USD Millions
Marqeta
Public - Market cap USD 4.7 bn
Cross River Bank
908
Plaid
734
Clear Bank
627
Thought Machine
563
Deserve
544
GoCardless
529
Global Processing Services
458
MX
450
Mambu
448
Solarisbank
445
Amount
283
TrueLayer
271
10x Future Technologies
253
Pollinate
218
Modulr
181
Prime Trust
176
Unit
170
Railsr
141
Nymbus
121
Pismo
118
Lithic
115
FintechOS
91
Token
90
Ohpen
84
Kevin.
79
Enfuce
70
Alviere
70
Yapily
69
Mantl
62
Meniga
56
Narmi
56
Weavr
54
Highnote
54
Extend
54
Savana
54
Omnio
52
Imprint
52
Synapse
51
Moven
47
Synctera
45
Treasury Prime
32
Central Payments
30
Volt
28
Griffin
28
Banked
25
ClickSwitch
19
Productfy
18
Solid
18
Vyne
16
Rize
13
NovoPayment
0
Bankable
Unknown
Finastra
Unknown
Transcard
Unknown
Q2
Unknown
i2c
Unknown
Raisin DS
Unknown
Watchlist
?
Bond
Victor
Dapi
BankiFi
Salt Edge
Hydrogen
Cleareye.ai
Ecospend
Orenda
Toqio

Payment and subscription management

?

Disruptors

?
Funding in USD Millions
Flywire
Public - Market cap USD 2.8 bn
Zuora
Public - Market cap USD 1.3 bn
Stripe
2335
Checkout.com
1830
Mollie
928
Airwallex
802
Rapyd
770
GoCardless
529
Flutterwave
475
Chargebee
468
Global Processing Services
458
PPRO
370
Paddle
293
Nium
285
Adyen
266
Stax
263
Form3
217
Modulr
181
BlueSnap
165
Currencycloud
160
Thunes
130
Finix Payments
126
Balance
87
Dwolla
72
Alviere
70
Imprint
52
Lemonway
40
DEUNA
37
Gr4vy
27
CellPoint Digital
25
Tilled
24
Qolo
19
Imburse
17
Routefusion
14
Verituity
10
i2c
Unknown
ECOMMPAY
Unknown
Watchlist
?
Sila
Weav
Park Place Payments
Six Clovers
WhenThen

Fraud prevention

?

Disruptors

?
Funding in USD Millions
Stripe
2335
Socure
647
Veriff
192
Alloy
156
Sardine
24
Verituity
10
Watchlist
?
Sila

Lending-as-a-service (LaaS)

?

Disruptors

?
Funding in USD Millions
Plaid
734
Blend
665
Parafin
244
Modulr
181
Pinwheel
77
RooStify
65
EarnUp
59
Canopy Servicing
15
Floify
Unknown
Watchlist
?
Pngme
Artis
Rightfoot
DigiFi
Faire

Investment and financial management services

?

Disruptors

?
Funding in USD Millions
Plaid
734
DriveWealth
551
Clear Street
335
Modulr
181
Sharegain
82
Alpaca
72
Upvest
63
Sensibill
57
Moven
47
Atomic
25
Lemon.markets
16
Railz
15
WealthKernel
14
Delio
12
Spinwheel
11
Banyan
10
Apex Clearing
Unknown
Watchlist
?
Savvy
Weav

Marqeta

Marqeta is a card issuing platform that provides the infrastructure for enterprises to offer physical and digital payment cards through its open application programming interface (API). It entered the card-issuing market in 2010 and was the first startup to do so in around two decades in the US. In addition to its API and infrastructure, Marqeta also enables its enterprise customers to issue cards, authorize transactions, and manage payment operations. 

Marqeta noted that its platform is a scalable platform with built-in redundancy, failover, and 99.99% uptime. Moreover, the company has a global presence, with more than 400 employees spread across 12 countries. Marqeta also introduced a “RiskControl” solution in April 2022, to help its card issuing customers with risk, compliance, and fraud management.  

Key customers and partnerships

In March 2020, upon earning the certification to process payments in 10 Asia-Pacific nations, Marqeta expanded its operations to Australia in partnership with Klarna (a buy now and pay later platform) as the first step of its Asia-Pacific expansion. The two companies expanded on this partnership to provide their joint offering to 13 European countries in December 2021. Moreover, in July 2022, Marqeta partnered with Canopy Servicing to offer buy-now-pay-later (BNPL) and lending solutions to banks, credit unions, and enterprise fintechs. 

Marqeta was chosen by Google in July 2021, to power the virtual “Google Play” balance card. Moreover, in June 2022, cross-border money movement giant, Western Union adopted Marqeta’s infrastructure to launch physical and virtual cards (for fund disbursements). 

Funding and financials

Marqeta had issued around 320 million cards as of March 2021, and processed transactions worth more than USD 111 billion through its platform, in 2021. Accordingly, the company’s revenue rose sharply (up 78.2% YoY) to USD 517.2 million in 2021 ; however, it was yet to turn profitable (adjusted EBITDA was a negative USD 12.8 million). 

Marqeta raised an undisclosed sum as an investment from MasterCard in October 2020. Along with the investment, MasterCard intended to extend its partnership with Marqeta, which commenced in 2014, to expedite Marqeta’s international expansion, launch additional card programs, and launch new products. Moreover, in February 2022, Marqeta expanded its platform further by partnering with Plaid to simplify ACH transfers. 

In June 2021, the company was listed on the Nasdaq and raised USD 1.2 billion through its IPO, at a valuation of USD 15.2 billion.

Segment:
Banking services
Total funding:
USD 530.1 million
Competitors:
TransCard, Lithic, Railsr, Deserve
Disruptor Funding History

Banking services:

Marqeta
Cross River Bank
Plaid
Clear Bank
Thought Machine
Deserve
GoCardless
Global Processing Services
MX
Mambu
Solarisbank
Amount
TrueLayer
10x Future Technologies
Pollinate
Modulr
Prime Trust
Unit
Railsr
Nymbus
Pismo
Lithic
FintechOS
Token
Ohpen
Kevin.
Enfuce
Alviere
Yapily
Mantl
Meniga
Narmi
Weavr
Highnote
Extend
Savana
Omnio
Imprint
Synapse
Moven
Synctera
Treasury Prime
Central Payments
Volt
Griffin
Banked
ClickSwitch
Productfy
Solid
Vyne
Rize
NovoPayment
Bond
Victor
Dapi
BankiFi
Salt Edge

Payment and subscription management:

Flywire
Zuora
Stripe
Checkout.com
Mollie
Airwallex
Rapyd
GoCardless
Flutterwave
Chargebee
Global Processing Services
PPRO
Paddle
Nium
Adyen
Stax
Form3
Modulr
BlueSnap
Currencycloud
Thunes
Finix Payments
Balance
Dwolla
Alviere
Imprint
Lemonway
DEUNA
Gr4vy
CellPoint Digital
Tilled
Qolo
Imburse
Routefusion
Verituity
Sila
Weav
Park Place Payments

Fraud prevention:

Stripe
Socure
Veriff
Alloy
Sardine
Verituity
Sila

Incumbents


In-house development of banking and payment infrastructure

Incumbents in the financial technology (FinTech) infrastructure space are typically legacy banks, FinTechs, and payment service providers.

Large incumbent banks usually develop FinTech infrastructure in-house for their own use and as a product offering to third parties while also investing in FinTech infrastructure disruptors. Through these investments, banks gain access to modern technologies including cloud-based computing and the latest insights and analytics tools for customer banking data.

Leading global payment and card service solution providers, Visa, American Express (Amex), Mastercard, and PayPal offer payment gateways and integrations to provide full-stack and/or white-label infrastructure for enterprises. They also commonly partner with, or acquire, banking service FinTech infrastructure providers to enhance their own payment offerings as banking capabilities play a central role in enabling online payments. Through these partnerships and acquisitions, payment infrastructure users can gain financial insights on transactions and increase the speed of fund transfers and payments through banking verification tools.

Legacy FinTechs offering solutions directly to end-users typically enter the market through acquisitions and investments. However, FinTech incumbents acquiring infrastructure providers in a segment that they already operate in may lead to a conflict of interest as clients of the subsidiary may end up competing with the infrastructure provider’s parent company. For example, SoFi’s acquisition of the infrastructure provider Galileo was seen as a potential conflict as Galileo’s customers (which included SoFi) were also directly competing with SoFi in the digital lending space.

Banking services
Payment and subscription management
Fraud prevention
Lending-as-a-service (LaaS)
Investment and financial management services
In House Development
M&A
Partnership
Investment
Visa
Mastercard
PayPal
American Express
Goldman Sachs
Envestnet
Fiserv
BBVA
SoFi
Calyx
The Bancorp
Green Dot
Block
Fidelity Information Services
Klarna

Notable Investors


No investor data is available

Funding data are powered by Crunchbase
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