While alternative payment systems deals dominated, accounting for 42% of transactions, investors were also attracted to payment acceptance devices (18% of deals) and money transfers (15% of deals).
It was a payments service provider (PSP) – Mollie B.V – which attracted Q2’s biggest deal. The Netherlands-based company raised US$790.9m in Series C funding led by Blackstone Group and other investors. Mollie B.V says the investment will fund international expansion and investment in more innovative products and engineering.
Swedish-based payment and shopping solution provider Klarna was the target of the quarter’s second biggest deal. The US$639m investment round, led by Softbank Vision Fund and investors including Westcap and HoneyComb Ventures, will enable Klarna to continue to expand abroad and capture global retail growth.
The third biggest investment this quarter was the US$500m investment in UK-based payment processing service provider company, Salt Pay Co ltd. The round was led by Tiger Global Management.
North and Central America were the hub of VC deals in Q2, attracting 40% of investments in terms of both volume and value. Europe attracted 25% of deals and 30% of value, while Asia accounted for 19% of deals and 20% of value. The Middle East and Africa hosted 9% of deals. South America attracted 8% of deal value.