Payments Issuing Business Models; The UK Merchant Acquiring Market; Key Considerations for Open Finance;
Welcome to this week’s Fintech Wrap Up—where we explore card issuing business models and the shake-up in the UK merchant acquiring market.
Insights & Reports:
1️⃣ Payments Issuing Business Models
2️⃣ The UK Merchant Acquiring Market
3️⃣ Challenges in Accounts Payable (AP) and Accounts Receivable (AR) Processes
4️⃣ Key Considerations for Open Finance
5️⃣ 8 key imperatives for core banking modernization
6️⃣ Key Questions to Ask When Choosing a Payment Vendor
7️⃣ Fintech-Bank Partnerships - How Partner Banks Think
8️⃣ Mexico's Klar bags $190m in new funding at reported $800m valuation
9️⃣ French B2B neobank Qonto applies for banking licence in France
TL;DR:
First up: issuing cards isn’t just about technology anymore—it’s about business model strategy. Whether you’re launching a neobank or embedding finance into your platform, your choice of issuer (from processors like Marqeta to full-stack players like Adyen and Stripe) defines your control, flexibility, and risk. The more you own, the more responsibility you take on.
In the UK merchant acquiring space, legacy players still dominate, holding 71% of the market. But challengers are making waves—around 80% of new merchants are signing up with PayFacs and smaller acquirers offering speed, transparency, and vertical-focused services. The fight for SME and mid-market merchants is heating up.
Meanwhile, AR and AP teams are drowning in complexity, not just outdated tech. Over 70% of finance execs report major inefficiencies, with invoice errors, poor integration, and reliance on spreadsheets slowing everything from reconciliation to cash flow visibility. It’s a strong case for automating and modernizing financial operations.
On the regulatory front, BIS lays out a roadmap for Open Finance, urging clear policy goals, consumer data protection, and API standardization. Broad participation and trust will be essential to unlock its full potential.
Banks are also under pressure to modernize core systems. BCG highlights eight imperatives—from rising customer expectations to regulatory demands—pushing banks toward API-first, cloud-native platforms.
Lastly, picking the right payment vendor has become a strategic decision. Cost, compliance, scalability, and customer experience all matter. Choose a partner that grows with you, not one that holds you back.
That’s a wrap for now—see you in the next edition!
Reports
Insights
Stripe vs. Adyen – Comparing Product Stacks and Pricing
It’s clear Stripe and Adyen are each incredibly strong – but in slightly different arenas.
If you’re a product manager or founder choosing between Stripe and Adyen in 2025, the decision comes down to your business’s specifics:
Are you an early-stage or SMB, needing to get running quickly with minimal complexity? Stripe is probably the better fit, thanks to instant onboarding and out-of-the-box solutions.
Are you operating at scale, especially across many countries or channels, and obsess over cost per transaction? Adyen may offer an edge with lower fees and a unified system for everything.
Do you need a lot of software support like managing subscriptions, tax, or an ecosystem of integrations? Stripe shines there with its add-ons and partners.
Do you need a provider who can deeply integrate with your enterprise systems and perhaps offer bespoke arrangements (like direct bank connections or custom payment flows)? Adyen might be more flexible at that truly enterprise integration level.
Notably, the smartest players sometimes use both. There’s a reason many Fortune 500 merchants have multiple PSP relationships – it provides bargaining power and backup options. Stripe and Adyen themselves even seem to acknowledge a world of coopetition: for instance, Capital One’s fraud tool launch included both Stripe and Adyen as partners, and some merchants use Adyen in one geography and Stripe in another.
Payments Issuing Business Models
The card issuing stack isn’t just about issuing cards anymore—it’s about the business model you choose.
Fintechs, platforms, and corporates entering the card space face a critical question: Do you want control, speed, or flexibility?
Your answer determines who you partner with.
Let’s break down the payments issuing business models, as mapped by Flagship Advisory Partners:
🔹 Issuer Processors & Vendors (e.g. Marqeta, Thredd, Enfuce):
They power the plumbing—auth, card management, tokenization, 3DS, etc. Used by banks and BaaS providers. Low on customer ownership, high on infrastructure.
🔹 Group Service Providers (e.g. Elan, Nexi):
They bundle processing, BPO, and VAS—ideal for small banks that want a full-service package. Less flexible but simple to deploy.
🔹 White-label BaaS (e.g. Unit, Moov, ClearBank):
API-first platforms that offer modular banking/payment services. Great for fintechs building fast. Coverage varies—many rely on partner networks and integrations.
🔹 White-label Program Managers (e.g. Tillo, Imprint):
Offer card products and program management as a service. Can support both consumer and commercial use cases. Verticalized and usually take on some program P\&L risk.
🔹 SaaS Payment Facilitators (e.g. Stripe, Adyen, Nuvopay):
They embed payments into SaaS platforms. End-to-end experiences with easy onboarding and monetization. Best for platforms serving third-party merchants.
🔹 Specialized Direct Issuers (e.g. Ramp, Soldo, Edenred):
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