EDGE
Book a demo

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 16 - 24 billion by 2025

Conservative case

USD 15.9 Bn

Base case

USD 19.4 Bn

Expansion case

USD 23.5 Bn

USD billion0510152025202020212022202320242025
View details

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.

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
?
Currencycloud
Currencycloud
Currencycloud
Currencycloud
Currencycloud
BBVA
Visa
SoFi
Goldman Sachs
Calyx
Envestnet
Fiserv
Green Dot
The Bancorp
Mastercard
Block
Plaid
Marqeta
Global Processing Services
MX
Mambu
Solarisbank
Thought Machine
Tink
Deserve
Cross River Bank
TrueLayer
Amount
Pollinate
Nymbus
Railsbank
Modulr
Enfuce
Prime Trust
Meniga
Omnio
Synapse
Moven
Bankable
Finastra
Q2
i2c
Raisin DS
10x Future Technologies
GoCardless
Pismo
Lithic
Clear Bank
Ohpen
FintechOS
Alviere
Unit
Yapily
Mantl
Extend
Token
Bond
Treasury Prime
Volt
ClickSwitch
Solid
Salt Edge
Dapi
Transcard
Cleareye.ai
Ecospend
Orenda
Highnote
Imprint
Synctera
Productfy
Weavr
Kevin.
Rize
Victor
BankiFi
Hydrogen
Toqio
Visa
Goldman Sachs
Fiserv
Green Dot
The Bancorp
American Express
PayPal
Mastercard
Block
Stripe
Checkout.com
Mollie
Airwallex
Rapyd
Global Processing Services
PPRO
Flywire
Adyen
Zuora
Flutterwave
Chargebee
Form3
BlueSnap
Currencycloud
Thunes
Modulr
Dwolla
ECOMMPAY
i2c
Nium
GoCardless
Finix Payments
Alviere
Lemonway
Balance
Gr4vy
Imburse
Routefusion
Tilled
Verituity
Weav
CellPoint Digital
Imprint
Sila
Qolo
Park Place Payments
Six Clovers
WhenThen
BBVA
Stripe
Socure
Alloy
Veriff
Verituity
Sila
The Bancorp
Plaid
Blend
Modulr
RooStify
Pinwheel
Rightfoot
DigiFi
Alchemy
Faire
Floify
Pngme
Canopy Servicing
Artis
SoFi
The Bancorp
Plaid
DriveWealth
Modulr
Moven
Alpaca
Sensibill
Railz
WealthKernel
Spinwheel
Banyan
Weav
Apex Clearing
Atomic

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 7.4 bn
Plaid
734
Global Processing Services
458
MX
450
Mambu
448
Solarisbank
403
Thought Machine
349
Tink
308
Deserve
294
Cross River Bank
288
TrueLayer
271
10x Future Technologies
253
Amount
243
Pollinate
218
GoCardless
217
Nymbus
121
Railsbank
121
Pismo
118
Lithic
115
Clear Bank
111
Ohpen
84
Modulr
79
FintechOS
76
Enfuce
70
Alviere
70
Unit
70
Yapily
69
Prime Trust
69
Mantl
62
Meniga
56
Highnote
54
Extend
54
Omnio
52
Imprint
52
Synapse
51
Token
50
Moven
47
Synctera
45
Treasury Prime
32
Volt
28
ClickSwitch
19
Productfy
18
Solid
18
Kevin.
14
Rize
13
Bankable
Unknown
Finastra
Unknown
Transcard
Unknown
Q2
Unknown
i2c
Unknown
Raisin DS
Unknown
Watchlist
?
Bond
Weavr
Victor
BankiFi
Salt Edge
Dapi
Hydrogen
Cleareye.ai
Ecospend
Orenda
Toqio

Payment and subscription management

?

Disruptors

?
Funding in USD Millions
Flywire
Public - Market cap USD 3.3 bn
Zuora
Public - Market cap USD 2.0 bn
Stripe
2235
Checkout.com
1830
Mollie
928
Airwallex
802
Rapyd
770
Global Processing Services
458
PPRO
370
Nium
280
Adyen
266
Flutterwave
235
Chargebee
218
Form3
217
GoCardless
217
BlueSnap
165
Currencycloud
160
Thunes
130
Finix Payments
96
Modulr
79
Dwolla
72
Alviere
70
Imprint
52
Lemonway
40
Balance
31
Gr4vy
27
Qolo
19
Imburse
17
Routefusion
14
Tilled
13
Verituity
10
i2c
Unknown
CellPoint Digital
Unknown
ECOMMPAY
Unknown
Watchlist
?
Sila
Weav
Park Place Payments
Six Clovers
WhenThen

Fraud prevention

?

Disruptors

?
Funding in USD Millions
Stripe
2235
Socure
647
Alloy
156
Veriff
92
Verituity
10
Watchlist
?
Sila

Lending-as-a-service (LaaS)

?

Disruptors

?
Funding in USD Millions
Plaid
734
Blend
665
Modulr
79
Pinwheel
77
RooStify
65
Canopy Servicing
15
Floify
Unknown
Watchlist
?
Pngme
Artis
Rightfoot
DigiFi
Alchemy
Faire

Investment and financial management services

?

Disruptors

?
Funding in USD Millions
Plaid
734
DriveWealth
551
Modulr
79
Alpaca
72
Sensibill
57
Moven
47
Atomic
25
Railz
15
WealthKernel
14
Spinwheel
11
Banyan
10
Watchlist
?
Weav
Apex Clearing

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 had issued around 320 million cards as of March 2021, and processed transactions worth more than USD 60 billion through its platform, in 2020. Accordingly, the company’s revenue more than doubled year-over-year (YoY) to USD 290.3 million in 2020; however, it was yet to turn profitable (operating loss of USD 47.1 million). The company expects its year-to-date revenue by September 2021 to reach USD 344-349 million.

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 company was also chosen by Google in July 2021, to power the virtual “Google Play” balance card.

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. This investment came on the heels of a USD 150 million funding round in May 2020 at a valuation of USD 4.3 billion. 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, Railsbank, Deserve
Disruptor Funding History

Banking services:

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

Payment and subscription management:

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

Fraud prevention:

The 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.

In-house development

Acquisition

Investment

Partnerships

company-logo-0BBVA
check
check
company-logo-1Visa
check
check
check
company-logo-2SoFi
check
company-logo-3Goldman Sachs
check
check
check
company-logo-4Calyx
check
check
check
company-logo-5Envestnet
check
check
company-logo-6Fiserv
check
check
company-logo-7Green Dot
check
check
company-logo-8The Bancorp
check
check
company-logo-9American Express
check
check
check
company-logo-10PayPal
check
check
check
check
company-logo-11Mastercard
check
check
check
check
company-logo-12Block
check
check
BBVA

BBVA is a global bank based in Spain that offers diversified financial services in over 30 countries. The company first gained exposure to the FinTech infrastructure industry by participating in the Series B funding round of the German banking-as-a-service (BaaS) platform, Solarisbank, in March 2018, as part of a broader goal of enabling digital transformation. 

In August 2019, its in-house BaaS platform, “BBVA Open Platform”, was launched out of beta, and included APIs to integrate banking services such as moving money, account origination, identity verification, and card issuances. The company claims it was the first bank in the US to offer a full suite of BaaS products. Although the platform lets users circumvent the process of obtaining a banking license, internal compliance and security checks are still required before using the infrastructure. 

Open Platform had a six-month beta period with dozens of businesses registering their interest to work with BBVA. The platform also offers a testing environment for enterprises to work through their proposal before signing up for the launch. The BBVA Open Platform is part of BBVA’s overall global movement to encourage open API platform banking usage. Other related offerings include the “BBVA API Market” in Spain, and a number of APIs rolled out in Mexico. 

Notable Investors

No investor data is available

Funding data are powered by Crunchbase
arrow
menuarrow
Unlock company details, featured industry reports, and news updates.
Book a demo

By using this site, you agree to allow SPEEDA Edge and our partners to use cookies for analytics and personalization. Visit our privacy policy for more information about our data collection practices.