FinTech Mergers

Posted: 16 Feb 2022 Last revised: 22 Feb 2022

See all articles by Joanna (Xiaoyu) Wang

Joanna (Xiaoyu) Wang

Georgia State University

Alan Zhang

Florida International University (FIU)

Date Written: February 12, 2022


FinTech companies and FinTech mergers are increasingly prevalent over the past decades. This paper explores the motives and consequences of FinTech mergers. FinTech firms have a greater likelihood of becoming targets in mergers and acquisitions (M&As). FinTech mergers increase the valuation of combined firms by 2.15%, and such value creation is significantly greater than non-FinTech mergers. Acquirers adopt cutting-edge technologies through M&Asand subsequently become FinTech firms. Moreover, FinTech mergers generate spillover effects to peer firms in the merging industries. We document positive market reactions to the industry peers in the short term and FinTech merger waves in the long term.

Keywords: FinTech, Mergers and acquisitions, Value creation, Industry peers, Merger waves

JEL Classification: G10, G14, G30, G34

Suggested Citation

Wang, Xiaoyu and Zhang, Alan L., FinTech Mergers (February 12, 2022). Available at SSRN: or

Xiaoyu Wang

Georgia State University ( email )

35 Broad Street
Atlanta, GA 30303-3083
United States

Alan L. Zhang (Contact Author)

Florida International University (FIU) ( email )

University Park
11200 SW 8th Street
Miami, FL 33199
United States


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