- Mitgo Group ventures into fintech, aiming for a $15.7 billion market opportunity in 2024, targeting affiliate publishers globally.
- Mitgo acquires Embedded, enhancing its fintech capabilities and aiming to serve underserved publishers in MENA, APAC, and LATAM regions.
- Mitgo promises instant withdrawals, financial services, and reduced costs, revolutionizing affiliate marketing and unlocking new revenue streams for publishers.
MarTech giant Mitgo Group is taking a bold step forward by launching a groundbreaking new business division focusing on fintech services for affiliate publishers. With affiliate marketing spending reaching an estimated $14.4 billion in 2023 and projected to exceed $15.7 billion this year, the company sees a significant opportunity in this rapidly growing sector. Over the next three years, Mitgo aims to capture over 7% of this transaction volume, potentially equating to more than $1.5 billion in value.
To kickstart this initiative, Mitgo has acquired UAE-based embedded finance platform Embedded, leveraging their team’s extensive fintech expertise. This strategic move will enhance Mitgo’s technology capabilities, paving the way for its entry into this new market segment.
The newly established division will offer a comprehensive suite of solutions in the field of embedded finance. These solutions are designed to empower millions of publishers worldwide, with a particular emphasis on currently underserved audiences in the MENA, APAC, and LATAM regions. One of the primary benefits is the ability for publishers to withdraw their earnings instantly, eliminating the standard waiting period of 60-120 days which is typical in affiliate marketing.
Additionally, publishers will gain access to various financial services, including loans, along with opportunities to reduce transaction costs and exchange commissions. Moreover, these solutions promise to enhance transaction speed and provide numerous other advantages to affiliate publishers. Mitgo Group has already conducted successful tests of similar financial solutions within its existing businesses, laying the groundwork for this ambitious endeavour.
Accessing loans and other forms of financing will emerge as a key advantage for publishers, as they currently face significant challenges in securing credit lines from traditional financial institutions. Standard financial solutions often fail to recognize the unique characteristics of publishers’ businesses, resulting in a lack of available financial products, particularly for small and medium-sized businesses (SMBs).
Mitgo Group leverages its 15 years of experience in the affiliate marketing market, collaborating with over 100,000 active partners. By utilizing unique algorithms powered by AI and machine learning, the company can accurately evaluate potential borrowers and construct a low-risk yet highly profitable loan portfolio.
Embedded finance solutions enable leaders in the financial industry, including major banks, payment systems, and e-wallet providers, to broaden their customer base and offer specialized products in previously inaccessible markets. This expansion extends to both geographical areas and niche segments that were previously deemed too costly and risky to enter.
Mitgo Group’s new business direction will serve as a guiding light in the expansive realm of affiliate marketing for select partners within the largest fintech organizations. Over the coming years, the company aims to forge partnerships with key players in the market, including global payment networks and major financial institutions. Leveraging the expertise of Mitgo’s professionals, these partners will gain access to untapped potential, encompassing millions of users and tens of billions of dollars in transactions that previously eluded the radar of financial institutions.
In addition to other promising opportunities, future partners in the financial industry will benefit from both a robust testing ground within a new market and an extensive distribution network for financial products among publishers’ audiences. These products range from cashback services and media buyers to loyalty programs and Buy Now, Pay Later (BNPL) services. With Mitgo’s assistance, partners will be equipped to offer tailored solutions to hundreds of millions of users worldwide.
Alexander Bachmann, the founder and CEO of Mitgo Group, affirms, “Our future partners from the financial industry will not only gain access to an excellent testing ground in a new market but also to a vast distribution network for financial products among publishers’ audiences. With our assistance, they will be empowered to offer a diverse range of solutions to hundreds of millions of users across the globe.”
Oleg Chanchikov, CEO and founder of Embedded, will spearhead the new business direction following its acquisition by Mitgo. With over 20 years of experience in both the IT and financial sectors, Oleg has held senior management roles at Visa and other prominent financial and IT organizations.
In his own words, Oleg emphasizes the global effort to empower small and medium-sized businesses (SMBs) and enhance accessibility to financial services, a sentiment echoed by major international entities such as the UN and the World Bank. He believes that embedded finance solutions play a pivotal role in fostering market growth, not only through traditional top-down approaches offered by banks but also through bottom-up initiatives where industries leverage financial products to address their core business needs and challenges.
Oleg expresses confidence that, in collaboration with Mitgo Group, they will not only revolutionize the way the MarTech industry utilizes financial products but also introduce groundbreaking solutions that will reshape the entire market.
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Last Updated on March 12, 2024 by Safiya K
