Why PayPal’s iZettle purchase is likely to be followed by a lot more fintech M&A

Despite high valuations for both private and public financial-technology companies, expect to see more deal activity in the payments sector.

PayPal Holdings Inc.’s PYPL, +0.57%recently announced acquisition of Swedish fintech company iZettle “marks a pivot point for increased deal activity, deal sizes, and valuations,” Mitch Siegel, KMPG’s financial services strategy leader, told MarketWatch.

The iZettle deal hits on a number of key themes that should remain of interest for legacy payments giants as they seek to adapt to disruptive forces in the industry, he said. These include a convergence of off- and online retail as well as the increased importance of global commerce and solutions for small businesses.

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