Takeover bids from payment technology company Paya Courts

Payments technology company Paya Holdings will consider selling as there has been interest in a takeover, according to a Bloomberg report.

Paya has worked with an adviser to meet the interest, and unnamed sources say there are “large, publicly traded payment companies” looking to become brokers.

However, there have been no deals yet and the talks may not come to fruition – Paya may end up staying independent.

Paya’s services help insurers, utilities, nonprofits, and other customers collect payments, process checks, and other services.

The payments industry has seen a lot of consolidation recently, with big companies like Global Payments and Fiserv buying out smaller rivals to help with their scale and diversity.

The payments industry has also seen tremendous growth during the pandemic, with cashless payments becoming more popular.

Paya has merged with a special purpose acquisition company (SPAC) backed by serial trader Betsy Cohen, though its shares have fallen more than 50% since that deal closed – one of many downfalls of stocks following a SPAC merger in recent months.

Read more: Companies cite outdated AP systems as hampering vendor communications

PYMNTS wrote that payment service needs are wide ranging, with companies of different sizes experiencing inefficiencies as they work with high levels of debt or “bulk payments”.

The report states that organizations without the solutions and infrastructure to work with these types of operations will struggle and run into barriers that impede growth, according to a report by PYMNTS and Routable.

The report surveyed numerous businesses, with most saying their growth would be hurt by the inability to manage the increase in payment volumes they are seeing.

There are other constraints as well, including the inability to communicate properly with suppliers and service providers, and 15% of executives surveyed said this was their biggest problem.

There are also other challenges, including insufficient payment options and no way to make payments in the currencies used by suppliers.

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NEW PYMNTS DATA: THE CUSTOM PURCHASING EXPERIENCE STUDY – MAY 2022

About: PYMNTS’ survey of 2,094 consumers for The Tailored Shopping Experience report, a collaboration with Elastic Path, shows where merchants are succeeding and where they need to up their game to deliver a personalized shopping experience.

About Valerie Wilson

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