Adyen moves from payment to Banking As A Service

The Dutch payment platform Adyen has established itself as an absolute reference in its market in Europe. It even recently decided to expand geographically, setting out to conquer the United States. But this international expansion has not satisfied Adyen's growing appetite, and it has also strengthened its diversification plan, moving beyond the payment sector to offer integrated financial products.

FACTS

• Adyen has just announced the expansion of its activities towards the Banking-as-a-Service market. The payment platform wishes to offer integrated financial services in addition to its historical product range.

• Adyen will support this new activity via its new "Adyen for Platforms" service and the "Adyen Issuing" solution for marketplaces and businesses (especially SMEs). The aim will be to help them create financial experiences tailored to their sector, in line with their users' needs.

• Among the products that will be created

• multi-currency accounts that allow users to receive, initiate or store payments securely from a single location

• financing solutions.

CHALLENGES

• Combining expertise: Adyen underlines its FinTech identity and highlights this nature to promote "Adyen for Platforms" as an intrinsically innovative solution offering disruptive financial and banking products. "Adyen for Platforms" emphasises its flexibility and reactivity, to differentiate itself from traditional players.

• Supporting a fast-growing demand: Beyond the players who specialised in BaaS, more and more players are converting to it, which is a way for them to add new revenues, but also to support a fast-growing offer from companies (small and medium-sized), who want to integrate payment paths and expand their payment and financing options.

MARKET PERSPECTIVE

• Adyen was born in 2006 and has established itself as a leading payment service provider (PSP) in Europe. It was even shaking up the stock market and banking industry in 2020, when BBVA and Société Générale banks were dropped from the Euro Stoxx 50 index of major European stock markets and replaced by Adyen.

• The FinTech is also not at the first stage of its diversification, as it started issuing cards in 2019, and offering a SoftPOS solution just recently.