SeekingAlpha reports on the valuation of Square, Inc. citing several factors that have led to an overvalued stock price of $17.37; the author reports that assumptions on the growth of its customers is overestimated; says it will have difficulty when expanding to higher value customers and internationally also reporting that the business model is at risk to lower cost market competitors; also says that its reliance on Square Capital lending to retain customers and balance attrition of gross payment volume is unlikely primarily due to market competition. Source
In this analysis, we explore an overarching framework for the M&A activity in the fintech, big tech, and crypto ecosystems. We discuss acquihiring, horizontal and vertical consolidation, as well as the differences between growth and value oriented acquisition rationales. The core insight, however, is about the arbitrage between the fintech and financial services capital markets, as evidenced by the recent transactions for Starling and Figure.
American Express is looking to use the same style data that has made PayPal and Square so successful in small business lending; Gina Taylor Cotter, senior vice president and general manager of global commercial financing at American Express. tells American Banker,“We have done some research on this and we are trusted providers, so this puts us neatly between banks that may have a longer application process and the online lenders who are fast, but maybe a bit more expensive." Source.
New CFPB chief’s memo to staff: Enforce law, but don’t presume guilt 2019 could be the year CRA deadlock ends...
An article in Forbes earlier this month about the traction of digital banks caught my attention. A survey of U.S....
In the last 18 months there has been a wave of consolidation in the payments sector and that trend looks...
It has been an interesting to say the least as we have watched everything play out with the Paycheck Protection...
As non bank lenders continue to gain market share across different loan segments, we wanted to give a complete overview...
Lendio’s Top 10 States for Small Business Square Funded $339M to SMBs in Q1 Neon Raises $22M in Series A...
Some payment providers like Square have been in the news recently for the increases in withholdings during the crisis; Square...