As small businesses (SMBs) rapidly digitize, they are creating a critical window for financial institutions to capture market share: SMBs represent 90% of businesses worldwide and are demanding faster, more flexible financial tools.
But among incumbent financial services companies, payments leaders — Visa, Mastercard, American Express, PayPal, and Block — are proving better positioned than traditional banks to win this market.
Compared to the 5 largest retail banks by market cap, our analysis of CB Insights data shows that the 5 largest payments companies by market cap have been far more active in SMB-focused partnerships, acquisitions, and investments over the past 3 years.
