Corpay and TPG to Acquire AvidXchange for $2.2B
Hey Payments Fanatic!
Corpay and TPG have agreed to acquire AvidXchange for $2.2 billion, valuing shares at $10 and taking the company private. AvidXchange, known for its accounts payable automation software, serves over 8,500 middle-market businesses and has supported corporate payment processing for 25 years.
In FinTech, this deal highlights a growing trend of payment firms and private equity partnering to streamline services that support middle-market business operations.
Launched in 2000, Corpay offers business payment and expense management solutions, including AP automation, commercial cards, and cross-border payments. Last month, Mastercard invested $300 million for a 3% stake in Corpay’s cross-border unit.
TPG, a global alternative asset manager with $246 billion in assets, invests across sectors like technology and healthcare, with a focus on long-term value creation.
“Over the last 25 years, AvidXchange has established itself as a leader in AP automation and payment software by building a differentiated platform primed for growth,” said CEO Michael Praeger.
TPG will take the majority stake, with Corpay holding a minority interest. Together, they aim to scale AvidXchange’s payment solutions and enhance corporate workflows—a shift for the businesses that depend on it daily.
Read more global payment industry updates below 👇 and I'll be back with more tomorrow!
Cheers,
INSIGHTS
📊 UPI QR codes have recorded the fastest growth in digital payments infrastructure in the financial year 2024-25, with a 91.5 per cent jump over the previous financial year to 𝟲𝟱𝟳.𝟵 𝗺𝗶𝗹𝗹𝗶𝗼𝗻
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GOLDEN NUGGET
𝐓𝐡𝐞 𝐈𝐧𝐭𝐫𝐨𝐝𝐮𝐜𝐭𝐢𝐨𝐧 𝐭𝐨 𝐂𝐚𝐫𝐝𝐬 𝐢𝐧 𝐏𝐚𝐲𝐦𝐞𝐧𝐭𝐬 by Travel & Payments 👇 Created by Arthur Bedel
𝐀𝐮𝐭𝐡𝐞𝐧𝐭𝐢𝐜𝐚𝐭𝐢𝐨𝐧 & 𝐀𝐮𝐭𝐡𝐨𝐫𝐢𝐳𝐚𝐭𝐢𝐨𝐧 in 𝐂𝐚𝐫𝐝 𝐏𝐚𝐲𝐦𝐞𝐧𝐭𝐬
𝐖𝐡𝐚𝐭 𝐢𝐬 𝐀𝐮𝐭𝐡𝐞𝐧𝐭𝐢𝐜𝐚𝐭𝐢𝐨𝐧 𝐢𝐧 𝐏𝐚𝐲𝐦𝐞𝐧𝐭𝐬?
► Authentication is the process of verifying the identity of the cardholder before a payment is processed. It's a core pillar of card security and fraud prevention.
► It is typically handled through 3DS (3D Secure) protocols, connecting issuers, card networks, merchants, and specialized service providers.
𝐇𝐨𝐰 𝐝𝐨𝐞𝐬 𝐀𝐮𝐭𝐡𝐞𝐧𝐭𝐢𝐜𝐚𝐭𝐢𝐨𝐧 𝐖𝐨𝐫𝐤?
1️⃣ A customer visits a merchant’s site (e.g., using VGS, DEUNA, Payplug, CellPoint Digital) and enters their card details.
2️⃣ The merchant or acquiring bank (Adyen, Checkout.com, Worldpay) sends an authentication request to an MPI provider (Merchant Plug-In).
3️⃣ Providers like Forter, G+D Netcetera, and Ravelin Technology process and forward the request to the card networks (Visa, Mastercard, Discover Financial Services, etc.).
4️⃣ The networks route the request to an ACS provider (Access Control Server), such as IDEMIA, which completes the authentication on behalf of the issuing bank (Citi, Revolut, Nubank, Chase).
𝐖𝐡𝐚𝐭 𝐢𝐬 𝐀𝐮𝐭𝐡𝐨𝐫𝐢𝐳𝐚𝐭𝐢𝐨𝐧 𝐢𝐧 𝐏𝐚𝐲𝐦𝐞𝐧𝐭𝐬?
► Authorization is the approval of the transaction by the issuer after authentication. It verifies whether the cardholder has sufficient funds and is not flagged for fraud.
► It happens in milliseconds—but is crucial to ensure the payment is legitimate and cleared to proceed.
𝐇𝐨𝐰 𝐝𝐨𝐞𝐬 𝐀𝐮𝐭𝐡𝐨𝐫𝐢𝐳𝐚𝐭𝐢𝐨𝐧 𝐖𝐨𝐫𝐤?
1️⃣ After authentication, the merchant (via Adyen, Stripe, or Worldpay) sends the transaction request with all data to the Acquiring Bank.
2️⃣ The Acquiring Bank (e.g., Fiserv) routes the request to the appropriate Card Network (Visa, Mastercard, GIE Cartes Bancaires, etc.).
3️⃣ The card network contacts the Issuing Bank (Citi, Nubank, Revolut) for final approval.
4️⃣ The Issuer checks the validity and funds, responds back via the network, and the transaction is either approved or declined.
𝐍𝐞𝐱𝐭 𝐔𝐩: 𝐂𝐥𝐞𝐚𝐫𝐚𝐧𝐜𝐞 & 𝐒𝐞𝐭𝐭𝐥𝐞𝐦𝐞𝐧𝐭 + 𝐑𝐞𝐜𝐨𝐧𝐜𝐢𝐥𝐢𝐚𝐭𝐢𝐨𝐧 𝐢𝐧 𝐂𝐚𝐫𝐝 𝐏𝐚𝐲𝐦𝐞𝐧𝐭𝐬
Source: Travel & Payments
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