Adyen, a 12-year-old payment company, is now worth more than €20 billion ($23.3 billion) on the stock market, edging out Deutsche Bank’s €19.9 billion market capitalization. The Dutch fintech’s stock has soared since its public debut less than three months ago, as investor enthusiasm for tech-savvy payment companies surges.
Deutsche Bank, meanwhile, hasn’t been able to regain the footing (paywall) it had before the global financial crisis in 2008, when it was a world-leading investment bank. The Frankfurt-based lender’s stock market value has fallen by around two-thirds from its peak around €60 billion in 2007.
Adyen, which processes payments for companies like Netflix and Facebook, has nearly tripled its market value since its June IPO. Investors are betting it will prosper as more payments take place digitally and online—some 85% of transactions around the world still take place in cash. Last month, Adyen said net first-half profit jumped by 75%, to €48 million.
The listing was a big day for the company and other “fintech startups reinventing the centuries-old financial services industry,” said Jan Hammer, a partner at Index Ventures, an Adyen investor. The payment company’s growing profit and soaring stock price could spark a virtuous cycle of more investment, as well as expertise and talent, flowing into the sector.
TransferWise is another fintech firm that recently reported buoyant financial figures. The company, which was founded in 2011, says revenue and income has increased even as it cut prices for money-transfer services. The London-based firm’s revenue nearly doubled, to £117 million ($152 million), for the year ending March. The results are proof “that we can continue to drive down the cost of financial services,” said TransferWise CFO Matt Briers. Bank valuations may also be driven down, as fintechs muscle in on the businesses they used to take for granted.