News

By Evita Lune - Equity Partner, Global Head of the FinTech Practice Group

February 2026

We have interviewed close to 40 COOs within Europen BaaS space during the last month. Many companies are excelling in specific segments: clearing, card issuing, acquiring, payment processing, embedded lending. However, only a few providers truly offer a broader range of services combined with the relevant licenses to operate across the value chain.

Paynetics and Swan stand out as promising and stable full-range providers, with top-class clients under their belt. 

The successful exit of Vodeno to UniCredit has inspired entrepreneurs to continue building BaaS-like services and accelerate the shift toward embedded and white-label solutions. 

However, the industry has not taken off as smoothly or as fast as many expected.

Solaris SE is an example of the challenges the sector faces — navigating regulatory crises, continued lack of profitability, and the search for a proven, scalable business model.

Railsr experienced a rather distressed sale. Other relevant European players to watch include Modulr, Banking Circle and ClearBank.

Very few organizations have successfully built AI-centered operational processes — a key requirement of our client. It appears that many organizations still hesitate to fully trust AI when it comes to handling payments and making sensitive decisions concerning clients’ money. 

Yet, AI-driven efficiency and intelligent automation may become a decisive competitive advantage in BaaS operations.

Another challenge we observe: the work-life balance expectations of many executives in Western Europe and the Nordics do not always align with the intensity required in a demanding challenger scale-up environment.

Key COO competencies in this space include:

• Advanced technological understanding and digital infrastructure knowledge
• Ability to tailor onboarding processes to clients ranging from FinTechs to large corporates
• Impeccable organizational and analytical skills to lead and structure large operations teams
• Deep experience with card schemes and regulatory frameworks
• Proven success in scaling efficiently within high-growth environments 

This is a rare combination.

Strategic Crossroads: Infrastructure or Pure BaaS?

Should FinTechs with advanced technology focus on selling infrastructure to banks? Or should they continue pushing the BaaS model — enabling merchants, SMEs, and retailers to offer bank-like services directly to their clients?

As featured in Evita Lune's original LinkedIn post and shared by Paynetics.