Behind the Headlines: How smart fintech deals are getting done in 2025

In the world of Fintech M&A, few understand the market’s undercurrents, such as Simon Stokes. With over two decades of experience guiding high-stakes transactions across payments, banking, and fintech, Simon has developed a reputation for identifying and bringing clarity to innovative growth opportunities. His role as Head of Fintech M&A at PaymentGenes Capital puts him at the crossroads of transformative deals, where strategy trumps speculation, and value is found in the overlooked corners of the market.

"We entered 2025 with a cautious sense of optimism and some exciting opportunities. The funding freeze seemed to be thawing, and fintech valuations started looking rational again. But like many in the ecosystem, we’re now watching the market demonstrate an increasing level of caution. That being said, we are experiencing an increase in activity within the lower EV, scale-up sector, where inorganic activity is accelerating growth."

This reflective pragmatism defines his approach. While others chase market hype, Simon and his team at PaymentGenes Capital focus on the subtle, strategic plays that fly under the radar, acqui-hires, license acquisitions, and capability-driven transactions.

1. Q1 Reality Check: A Mixed Bag of Signals

What does the slowdown in IPOs and rise in fintech deals tell us about where the industry is headed?

After the buzz of Q4 2024, which hinted at a resurgence in IPO activity and stronger valuations, the first quarter of 2025 tells a different story:

• IPO Pipeline Sluggishness: High-profile IPOs that seemed imminent have hit the brakes, hindered by renewed global market volatility. As Simon noted, "The current global market volatility is a significant headwind, putting some high-profile IPOs on hold."
• Pressure on Public Fintech Stocks: Even established players are feeling the squeeze as share prices dip once again, reflecting broader investor caution.
• M&A Momentum Holds Steady: Despite broader market hesitation, $56 billion in M&A volume was recorded across 437 transactions in Q1 2025, a 47% year-over-year increase. This growth contradicts the mainstream narrative of a complete M&A freeze, signalling that smart, strategic acquisitions are still thriving.
  Strategic M&A Deals Still Happening: While big-ticket M&A is scarce, notable strategic acquisitions are quietly shaping the fintech landscape. Recent examples include:
  
  • WorldPay's dual moves, first with the acquisition of Ravelin to bolster fraud prevention capabilities, followed by Global Payments’ takeover of WorldPay, a move aimed at consolidating processing power.
    
  • Shift4's acquisition of Global Blue signals a play for international expansion and enhanced payment capabilities.
  • Capital One and Discover are partnering up for cross-border payment innovations, showcasing strategic synergies rather than pure market expansion.
  • Advent’s acquisition of Nuvei focuses on scalability and deeper integration in B2B payment services.
    

These deals reflect a tactical approach: less about market dominance and more about filling strategic gaps—whether that’s acquiring licenses, tech capabilities, or regional footholds.

2. Not Dead—Just Different: The Nature of 2025 Fintech M&A

How is fintech M&A changing in 2025, and what do these new types of deals tell us about where the industry is focusing its efforts?

The M&A landscape in 2025 is evolving. Strategic moves are replacing the once-common megadeals, with acqui-hires and license acquisitions becoming dominant strategies. This shift is not about sweeping market control but precise, targeted capability expansion.

• License Acquisitions and Acqui-Hires: These deals are less about market domination and more about expanding capabilities or meeting regulatory demands. Global Payments’ acquisition of WorldPay was as much about acquiring regulatory footholds as it was about increasing transaction volume.
• Strategic Investment as a multiple step to full acquisition: Test the synergy assumptions, cross sell and distribution realities, pragmatic focus on Tech integration.
• Strategic Cross-Border Plays: Companies are cautiously entering new markets through smaller, targeted acquisitions rather than committing to large-scale mergers. For example, Shift4's acquisition of Global Blue provided immediate access to European markets without the friction of organic expansion.
  
• Sector Shifts: Payments, Wealth & Capital Markets, and Financial Management Solutions have been the hottest sectors for M&A activity. WealthTech alone captured 30% of Q1 M&A volume, illustrating a strong appetite for market consolidation and technological integration.

3. From Decks to Decisions: The Changing Role of M&A Advisory

How is the role of M&A advisors changing in 2025, and what kind of support are fintech companies really looking for today?

Clients today are seeking practical guidance over polished presentations. Gone are the days when M&A advisory meant endless pitch decks. Now, it’s about connecting the dots between strategic needs and realistic opportunities.

• From Pitch to Strategy: At PaymentGenes Capital, Simon and his team see how funding discussions often evolve into exit scenarios. What once started as a speculative inquiry can quickly turn into actionable acquisition roadmaps.
• Navigating the Licensing Maze: With regulatory landscapes evolving, acquiring a license has become a key strategic move, not just a compliance necessity. WorldPay's acquisition spree is a clear indicator of this strategy, focusing on expanding regulatory clearance alongside tech capabilities.
• Deep Industry Insight Matters: More than ever, clients value advisors who understand niche markets and can map synergies effectively. License acquisitions represented 18% of M&A deals in Q1 2025, with many focused on international market entry.

4. Quiet Strategy: Why a Red Market Isn’t a Dead Market

In a cautious market, why are smaller, strategic deals becoming the smart move, and what can we learn from the companies making them?

A volatile market doesn’t mean opportunity has dried up—it just requires a more nuanced approach. As Simon puts it, "What we view as opportunity is a high volume of smaller transactions that enable growth through strategic capability expansion."

Strategic players are actively preparing for the next phase by consolidating resources and expanding capabilities in quieter, more thoughtful ways. The best time to make strategic moves is when others are overly cautious. Advent’s acquisition of Nuvei is a prime example—focusing on scalable growth in payments infrastructure while the broader market hesitates.

Sub-$100 million deals made up 72% of all Q1 2025 M&A transactions, emphasizing the growing importance of smaller, strategic buys over headline megadeals.

5. We Want to Hear from the Quiet Strategists

At PaymentGenes Capital, Simon and his team believe that 2025 will belong not to the loud, headline-grabbing deals, but to the quiet strategists—the ones who move deliberately, identify real synergies, and unlock value in unexpected places.

While the market’s attention is often pulled toward high-profile IPO delays and billion-dollar acquisitions, the true momentum in fintech M&A is found in the subtle, calculated moves:

• License acquisitions that open doors to new markets without the friction of regulatory bottlenecks.
  
• Acqui-hires that strengthen in-house capabilities with minimal disruption.
  
• Cross-border transactions that build global presence one strategic foothold at a time.‍

This approach requires a different kind of M&A advisory. It’s not just about finding deals; it’s about curating strategic pathways that align with business goals and market shifts. At PaymentGenes Capital, the team prides itself on this surgical precision—matching opportunities with ambitions, and ensuring that every acquisition is part of a broader, sustainable strategy.

Your Next Move

Whether you're looking to scale through smart acquisitions, streamline operations with license acquisitions, or expand internationally with minimal friction, PaymentGenes Capital is here to navigate the complexity with you.

Reach out to us for a conversation. Let’s map out your next strategic step together.