Emerging Trends and Challenges
FTPartnersResearch-GlobalMoneyTransferTrends
FTPartnersResearch-GlobalMoneyTransferTrends
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Global Money Transfer<br />
Industry <strong>Trends</strong> – Emergence of “International Payment Specialists”<br />
Key Points<br />
• A relatively new segment of International Payment<br />
Specialists has emerged, which provides businesses<br />
<strong>and</strong> affluent consumers with cross-border payment<br />
<strong>and</strong> foreign exchange services on a bank account-tobank<br />
account basis<br />
• International Payment Specialists are disrupting the<br />
offerings of traditional banks by leveraging<br />
technology to provide a more cost-effective <strong>and</strong><br />
enhanced customer experience; bank offerings lack<br />
transparency <strong>and</strong> online functionality while charging<br />
high fees<br />
• Technology is accelerating growth in this space by<br />
increasing the ability to not only service customers<br />
online, but also acquire customers directly at a fraction of<br />
the cost using sophisticated SEO / SMO techniques<br />
• In contrast to Traditional Consumer Remittance<br />
Providers, this segment is more fragmented <strong>and</strong> offers<br />
better growth <strong>and</strong> margin characteristics<br />
• The highly successful OFX / OzForex Sale / IPO by FT<br />
Partners in 2013 was a pivotal event in increasing<br />
strategic <strong>and</strong> investor awareness regarding the<br />
attractiveness of International Payment Specialists<br />
• Increasing number of PE-backed participants <strong>and</strong> large<br />
strategic players expected to accelerate transaction<br />
activity<br />
Selected Players<br />
Date Amount Company Investor/Acquirer<br />
08/11/15 $310 Currencies Direct Corsair, Palamon<br />
06/23/15 18<br />
01/13/15 22<br />
The Currency<br />
Cloud<br />
Flywire (fka<br />
peerTransfer)<br />
Anthemis, Atlas Venture,<br />
Notion Capital, Rakuten,<br />
Sapphire Ventures,<br />
XAnge Private Equity<br />
Accel, Bain, Devonshire,<br />
QED, Spark<br />
08/29/14 352 Moneycorp Bridgepoint<br />
04/15/14 10<br />
The Currency<br />
Cloud<br />
Anthemis, Atlas, Notion<br />
Capital, X’ange<br />
03/10/14 242 HiFX Euronet<br />
12/27/13 6<br />
Recent Notable Transactions<br />
Flywire (fka<br />
peerTransfer)<br />
Devonshire Investors &<br />
Others<br />
11/11/13 na World First FTV Capital<br />
09/23/13 480 OFX (fka OzForex) IPO<br />
7
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