11 April 2019Reading time: 2 minutes

In the last years the market for online payment service providers has strongly grown. A recent research from McKinsey shows that the annual revenue of this industry has increased with 11 percent to 1900 billion dollar throughout 2017. The research agency expects that the annual revenue might even increase to 3000 billion dollar by 2023.

It’s not the large banks that are leading this industry. Instead especially the fintech companies have been building up a strong position in this market during the past years. By now it seems that the payment service provider market has consolidated. For example, ING took over the Dutch payment company PayVision in 2018 and in that same year iZettle was incorporated by PayPal for 2,2 billion dollar. In March this year Fidelity National Information Services (FIS) took over industry companion Worldpay for 43 billion dollar. Also the Italian company Nexi is preparing for a IPO which according to rumours should yield approximately 8 billion euro. The American company Stripe claims to have no plans for a IPO at this moment.

The Dutch company Adyen is one of the largest players within the industry and had its IPO in June 2018, with an introduction price of 240 euro per share. Within the next months the stock price of the share rose to more than 758 euro in September, but by the end of 2018 only 411 euro was left. In recent months the stock price has recovered and is now (08-04-2019) at 707 euro. Partly due to the increased market value, Adyen has been promoted in March to the AEX-index after revaluation of the Amsterdam stock market.

Amongst some of Adyen’s users are eBay, Spotify, Facebook and Uber. The latter recently received a payment licence of De Nederlansche Bank. Therefore the American taxi service can now process its own payments within Europe. Analysts believe that other clients of Adyen might follow Uber’s example and could become competitors of the payment service provider. It remains to be seen how the clients of Adyen will use their payment licenses in the future and how this could affect Adyen.

The future price of the stock is subject to several political, industrial and sector specific as well as economic factors. Investors should consider these risks when making their investment decisions. Developments can be different at any time than investors anticipated on, which could result in capital losses.

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03/03/2021 03:45:03