Starting fintech Yapily announces that it plans to acquire finAPI – the transaction is subject to regulatory approval before it is completed. Both companies offer open banking solutions in Europe.

With this move, Yapily consolidates its position in Europe and develops its business in Germany, in particular. The terms of the deal are undisclosed, but the company says it is a “multimillion-dollar” deal.

Based in the United Kingdom, Yapily offers a single, unified open banking API for interacting with bank accounts. Unlike Tink or TrueLayer, Yapily offers a low-level solution without a front interface. Developers need to encode their own banking connection flow. The result is more control and a lack of the Yapily logo.

Due to European regulation of PSD2, banks need to offer programming interfaces (APIs) in order to work better with third-party services. Yapily focuses specifically on official API integrations and covers thousands of banks. It does not rely on screen scraping and private APIs.

Companies can use open banking to check their bank account balances, retrieve the latest transactions, but also initiate payments directly from a bank account.

FinAPI is also an open source banking provider. Originally from Munich, Germany, the company has existed since 2008. Schufa acquired a majority stake in finAPI in 2019. Offers API with coverage in Germany, Austria, Czech Republic, Hungary and Slovakia. Like Yapily, finAPI customers can obtain account information and initiate payments using the API.

In addition to these clean open banking products, finAPI also offers the ability to verify the age and identity of the customer. This can be useful for complying with the KYC (“Know Your Customer”) Regulation.

Yapily currently covers 16 European markets and the company says it is a leader in the UK, but the startup is currently not active in the Czech Republic, Slovakia and Hungary. With today’s acquisition, the company is expanding into these three new markets and becoming a leader in Germany.

As you can see, there is some overlap in product features between Yapily and finAPI. And the acquisition makes sense, as the two companies have not started in the same market.

Yapily works with companies such as American Express, Intuit QuickBooks, Moneyfarm, Volt, Vivid and BUX. FinAPI’s clients include ING, Datev, Swiss Life, ImmobilienScout24 and Finanzguru.

“This is an extremely exciting stage for Yapily in our journey from a devastating start to an ambitious expansion. Within three years of launch, we have commercialized our platform, expanded our customer base and now have the largest volumes of open bank payments in Europe. By working with finAPI, we can gain more speed, flexibility and depth to accelerate innovation and shape the future of open finance in Europe and beyond, “said Yapily founder and CEO Stefano Vacino in a statement.

When it comes to payments in particular, Yapily and finAPI have processed a total of $ 39.5 billion in payments over the past 12 months. In essence, Yapily will double its customer base with this acquisition.

Yapily to acquire finAPI in open banking consolidation move

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