Open banking fintech Yapily has agreed a deal to acquire finAPI.
FinAPI is a leading provider of open banking solutions in Germany and the deal will make Yapily a major open banking payments platform in Europe.
Together, they have enabled customers to process a combined total of $39.5 billion in payment volumes and connect to more than one million monthly active data users over the past year.
The acquisition will double Yapily’s customer base, bringing more than 50 large enterprise firms in the financial, insurance, and IT industries to its platform.
Yapily said the acquisition will give it a clear leadership position in the UK and Germany, while providing it with entry into new markets such as Czech Republic, Slovakia, and Hungary.
The open banking fintech’s customers will also benefit from a number of finAPI solutions, including identity and age verification and legally compliant KYC checks, and digital account checks that can be used for automated credit scoring.
Commenting on the acquisition, Stefano Vaccino, founder and chief executive officer at Yapily, said: “This is a hugely exciting milestone for Yapily on our journey from disruptive start-up to ambitious scale-up.”
“Within three years from launch, we have commercialised our platform, grown our customer base, and now have the largest open banking payments volumes in Europe. Working with finAPI, we can gain more speed, agility, and depth to accelerate innovation and shape the future of open finance in Europe and beyond.”
German credit bureau SCHUFA will sell its 75% stake in finAPI to Yapily as part of the deal, which is subject to regulatory approval and expected to complete in H2 2022.
The credit bureau will continue to use finAPI’s products and services, as well as cooperate on further product development, in the run up to completion of the acquisition and beyond.
Dr Florian Haagen, founder and chief executive officer at finAPI, commented: “Yapily’s core DNA as a fintech and open banking enabler is equally aligned with our belief in an infrastructure-first approach.”
“From the products we’ve built to the industries our customers operate in, our complimentary offerings mean that together, we are perfectly placed to spearhead Europe’s open finance agenda and make the financial lives of millions of people more resilient, simple, and secure.”
Tanja Birkholz, chief executive officer at SCHUFA, added: “Our strategic focus is to further strengthen client centricity. Open banking is one of the technological levers advancing Europe’s digital economy.”
“How transparently and appropriately the benefits of these technologies can be utilised will be very important for our customers and stakeholders. We know the customers’ needs, and together Yapily and finAPI will accelerate innovation to meet them.”