Mastercard Invests into Italian Embedded Finance Fintech Fabrickby Fintechnews Switzerland June 2, 2023
Mastercard and Open Finance sector pioneer Fabrick announced an expanded new partnership to develop Embedded Finance solutions that will improve the digitalization of businesses, financial institutions and fintechs across Europe.
As part of the agreement, Mastercard has made a minority investment in Fabrick – it has acquired a minority stake in Fabrick in a €40 million raise in which Mastercard and others joined the shareholding structure.
Part of the resources were raised through a capital increase, with which Mastercard and others joined the shareholding structure with minority stakes. The resources will be used to support the consolidation process in Italy, investments in products and services, infrastructure scale-up and expansion into other European markets. As an example of expansion Fabrick just acquired UK leading payments platform Judopay.
Today’s announcement builds on the ongoing relationship between the two companies who have been working together since 2019 to promote innovation on the development of digital financial services for the commercial ecosystem.
Embedded Finance enables companies from any sector to integrate financial services directly into their products via API implementation, giving every business the opportunity to provide payment, banking and insurance services without the need to build a proprietary financial infrastructure themselves.
To date, over 400 counterparties are connected to the Fabrick platform, generating over 330 mln API calls per month.
Paolo Zaccardi, CEO and Co-founder of Fabrick:
“Being able to count on the collaboration of a partner of the caliber of Mastercard with a new level of commitment will allow us to strengthen our international presence and open a new phase of growth and evolution. We have already made payments a core asset of our platform, but today with even greater intensity we will be able to define a new and even more complete offer deriving from the coming together of our respective strengths, to grow faster thanks to new resources and know-how, with the aim of establishing ourselves in other European countries as a benchmark in Open and Embedded Finance, which is already registering an extraordinary response from corporates, but which we are certain is only the tip of the iceberg of the infinite possibilities it enables”.
Michele Centemero, Country Manager Italy Mastercard:
“We are glad to reinforce our collaboration with Fabrick, and value their great vision and model to face, govern and design the evolution of embedded finance, we think will be a big driver for development of digitization in the next years. Our work with Fabrick and the digital financial services we will develop together, will support our collective goal to offer digital payment solutions to businesses and to deliver a seamless experience for their customers in a time of need.”
Featured image credit: Paolo Zaccardi, CEO and Co-founder of Fabrick & Michele Centemero, Country Manager Italy Mastercard. Background image edited from Freepik.