Global Processing Services adds $100M to its coffers to grow its embedded finance and API payments platform

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Embedded finance remains the engine driving the growth of fintech, with a group of companies building core banking, payments and other financial technology, and a much larger group building customer-oriented businesses using that technology through APIs. is building. Today, one of the big players in the core technology side— global processing services — is announcing $100 million in funding, a sign of not only how popular embedded finance remains as a business, but also the traction of GPS in space.

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Singapore investors Temasek and american firm missionogee The two sole investors in this tranche of funding are coming as an extension of the $300 million investment GPS announced back in October 2021, closing the entire round for $400 million. Arrival International And Viking Global Investors Co-led that previous round, which gave him a controlling stake in GPS. As in the first part of the round, GPS – which is based on the Isle of Man in England – is not disclosing its valuation today.

The funds will be used to continue growing GPS’s business – including a range of fintech services such as payments, direct debit and standing orders; virtual card; mobile wallet; fraud prevention; expense management; cryptocurrency management; BNPL and more (Sold under) GPS Apex brand).

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Specifically, the company seeks to expand into more emerging markets in Europe and the Asia Pacific region, as well as in the Middle East and Africa; And it wants to bring in new products. (Notably, there are no loan products in the mix right now, so this may be one area it explores; insurance may be another, and therefore solutions tailored to specific verticals.)

The reason for investment and investor attention is that GPS, and the location in which it is active, have both seen a huge jump in activity. On one hand, neobanking services are growing in popularity (and credibility) among consumers and businesses; On the other hand, we have seen a wide range of non-fintech businesses (such as telcos and retailers) tapping the concept of embedded finance to add new features and revenue streams to their own platforms.

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More generally, consumers and businesses have made a big shift to moving all their financial activities online as the COVID-19 pandemic took over the world, and even/if it ends. , so it looks like they won’t completely go back to their consistent ways. This has had an impact on venture funding for the entire fintech industry. Just yesterday, another big fintech player, payments startup Checkout, raised a whopping $1 billion at a valuation of $40 billion.

GPS itself focuses primarily on those working more directly in fintech, with clients including Revolut, Starling, Curve, Zilch and Paidy. It said its services are being used in 48 countries today and last year it processed more than 1.3 billion transactions, with 190 million cards issued so far.

“GPS is an innovative technology company, and we believe their unique position at the center of the global payments ecosystem would ideally enable them to power the next generation of financial services,” MissionOG General Partner Gene Lockhart said in a statement. suitable for.” “With the deep network and experience MissionOG brings to the table, we look forward to being a trusted and valued partner of Joan and the entire team.” Notably, Lockhart is taking on the role of president at GPS with this investment.

“The size of this latest round of investment is a significant step forward for the company and a strong endorsement of our strategy,” said GPS CEO Joan Dewar. “We are a company that has grown rapidly in recent years, driven by our commitment to innovation and the delivery of a single scalable technology platform. The expertise our new partners bring to GPS will be invaluable as we move across geographies. are entering their next phase of expansion and technology innovation.

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