Payment processor Flywire Corp. tapped investment banks to prepare for an initial public offering (IPO) in 2021 that could provide the company with a valuation of around $ 3 billion, Reuters reported, citing anonymous sources.
Flywire is working with JP Morgan Chase & Co. and Goldman Sachs Group Inc. on the public offering, which could take place as early as summer 2021. The company had a valuation of $ 1 billion in a February funding round. last year, Reuters noted, citing PitchBook.
Flywire, which launched in 2011, has processed over $ 16 billion in transactions and has more than 550 people working in locations in the United States, Asia and Europe. It aims to facilitate payments in the travel, health and education sectors.
In a conversation with PYMNTS, CEO of Flywire Mike Massaro covered the particular challenges of cash flow management and forecasting for the higher education system in the midst of the pandemic. And companies in other verticals, such as travel and healthcare, have had to embrace payment flexibility to meet the needs of their customers.
“COVID-19 poses problems both for the cost structure of running an education system and for families looking to send their children to study,” Massaro said, noting that educational institutions must prepare for a series of scenarios based on potential declines in enrollment or the increase in the number of students unable to pay tuition fees.
Colin Smyth, boss of to travel at Flywire, said in a precedent PYMNTS interview that many travel operators have used downtime during the pandemic to “rip off their legacy systems” and revamp their digital offerings.
“We believe people will pay for health, safety and the flexibility to easily modify and customize their trip,” he said. “And I think addressing those needs and how it’s digitized might be one of the most interesting parts of that.”
In healthcare, the demand for digital offers and payments has made digitization a requirement for healthcare systems. More attention is being given to creating a virtual gateway for patients to access their healthcare plans to simplify the overall consumer experience.
“[The pandemic is] draw attention to a problem that hospitals had anyway: unplanned medical bills that patients, even in normal times, struggled to pay. But with all the pressures created by the pandemic, it really highlighted the fact that we need to focus on helping patients to pay over time, ”said Flywire, executive vice president and general manager of care. health. Jean Talaga Recount PYMNTS.