US-based BaaS provider Rêv Worldwide has joined Searchlight Capital Partners to acquire the Netspend consumer business from Global Payments for USD 1 billion. US-based Netspend was founded by Roy and Bertrand Sosa, who also happen to be the founders of Rêv Worldwide.

The acquisition will bring the Sosa brothers back into the business, as they are now looking to leverage the strategic assets of both entities. Since it was founded in 1999, Netspend has processed hundreds of billions of dollars of cardholder purchases and opened more than 130,000 locations nationwide. In 2013, Netspend was acquired by global payment services company TSYS.

In turn, TSYS was acquired by Global Payments in 2019 for USD 21. 5 bln. This acquisition also included Netspend.

As for fintech Rêv Worldwide, its global partners benefit from mobile-first payment and banking-as-a-service solutions. These partners include Itaú Private Bank, Etihad Airways and LATAM Airlines. The company also has its own direct-to-consumer branded products such as the X World Wallet, which is available in the US.

According to company representatives cited by businesswire. com, Rêv and Netspend have come full circle and will now focus on offering financial services to underserved mass markets. Moving forward, the two companies aim to deliver new products and expand into new markets.

Searchlight involvement in Rêv acquisition Rêv tapped global private investment firm Searchlight for the acquisition. According to businesswire. com, the company has more than USD 10 billion in assets under management, and it has established a presence in cities such as New York, London and Toronto.

According to the same source, Searchlight invests in businesses that show a promise to accelerate value creation for all stakeholders through long-term capital and strategic support. Rêv’s acquisition of Netspend is expected to close in the first quarter of 2023. The deal is subject to relevant regulatory approvals and customary closing conditions.

Fintech in a fragmented financial system According to Forbes. com, the US financial system is highly fragmented, as it comprises more than 10,000 depository institutions, many of them community banks. This fragmentation makes it difficult to create a streamlined digital experience for all depositors.

Fintech can help with that by leveraging new and efficient technologies. Rêv’s Netspend deal comes at a time when consumers are more comfortable than ever with their mobile banking solutions. Moreover, investors are keeping a close eye on fintech startups and, if needed, they have the funding to back them up.

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