Raisin Bank enters the payment business in Germany

Raisin Bank, the bank owned by Raisin in Germany, has announced the acquisition of the payment services division of Bankhaus August Lenz & Co. This strategic step allows it to integrate a payment offering and finally enter this market to complement its Banking-as-a-Service offering. This acquisition will also enable it to find new sources of revenue and consolidate its position in Europe.

FACTS

• Raisin Bank is the result of the 2019 acquisition of MHB Bank. This operation enabled Raisin to obtain a banking licence, opening the doors to Europe to offer its Banking-as-a-Service platform to numerous fintechs.

• This acquisition in the field of payments will strengthen its network in Germany and expand its offer, both in electronic payments and in cash management.

• This new offer will be aimed at retail players: restaurants, petrol stations, distributors and ATM network managers.

• On the latter point, this acquisition will enable it to manage a network of more than 4,500 ATMs in Germany, with MHB Bank working with Euronet, NoteMachine and Prosegur for example.

CHALLENGES

• Diversify and strengthen its position in Germany by acquiring an existing customer base: Raisin Bank is already present in a number of business sectors, such as factoring and fractional payments, and of course savings, its parent company's traditional business. Raisin Bank recently announced a partnership with fintech Mondu, enabling the latter to offer its Buy Now Pay Later service in Europe. The diversification into payments makes Raisin Bank a key player in Banking-as-a-Service and further strengthens Raisin's position in Europe.

• Enriching its sources of revenue: as payment is a volume market, Raisin Bank finds here a new source of revenue, which consolidates its model.

MARKET PERSPECTIVE

• Raisin is now at the head of a powerful group, the result of a strategy of acquisitions (Deposit Solutions and ) and partnerships. It covers both :

  • savings, by acting as an intermediary between European savers and the savings offers of European and American banks,

  • investment, offered in Germany in the form of a robo-advisor, Raisin Invest, and a retirement tool, Raisin Pension,

  • and Banking-as-a-Service in the cloud, via its Raisin Bank offering.