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MGI 360 Ratings - BlueSnap in E-Commerce Platforms July 24 2018

INITIAL RATING: We are initiating coverage of BlueSnap in the e-Commerce Platforms Merchant of Record and PayFac segments with an MGI 360 Rating of 58 and a Positive outlook.
OPINION: BlueSnap is predominantly a Payment Facilitator (PayFac) and occasionally a merchant of record (MoR). The company has crafted a leadership position in the PayFac segment and has grown steadily under new management. BlueSnap is fully licensed for PayFac operations in Israel, Latin America, and Australia in addition to the US and Europe. It also provides merchants with a Payment Gateway only option. The solution supports a broad array of integrations with other commerce platforms, billing, subscription engines as well as fraud and chargeback management solutions. BlueSnap was an early adaptor of a mobile payment experience including Apple Pay and several APIs thus providing customers with a frictionless commerce experience. The company relies primarily on an online self-service channel and has been expanding its partner network. 
USE CASE: Small and mid-size companies with $5M to $500M in revenue looking for a consistent payment platform across payment methods and currencies
COMPANY DESCRIPTION: BlueSnap was originally founded in Israel in 2002 as Plimus. In 2011 private equity firm Great Hill Partners acquired the company for $ 115M, renamed it BlueSnap and moved the HQ to Boston. In 2014 Parthenon Capital joined on a $50Mil round of additional funding. The company employs around 150 people with offices in Waltham (HQ), London (EMEA HQ) and Tel Aviv (Development).

COMPETITORS: Stripe, PayPal, cleverbridge, 2Checkout, PayPro Global, FastSpring
MGI 360 Ratings is a comprehensive system for evaluating technology companies. IT organizations use MGI 360 to track suppliers, assess purchasing risks and identify promising new vendors. Vendors utilize MGI 360 to track their markets and evaluate partners. Institutional investors use MGI 360 for independent assessment of tech companies. MGI 360 ratings help lower costs, save time, reduce risks, and identify new opportunities. 
The MGI 360 ratings are on a scale from 0 to 100 and reflect company opinions of MGI analysts in five key areas on a scale of 0 to 20:
  • PRODUCT: How strong is the product competitive position
  • MANAGEMENT: How competent and experienced is the management team
  • CHANNELS: Does the company have a sales capability and channels needed to bring products to market?
  • STRATEGY: Does the company have a realistic view of the opportunity and a compelling strategy for success?
  • FINANCE: Is the company growing and profitable
Each of these key criteria is subdivided into numerous sub-categories. In total, over 149 criteria are combined to generate an MGI 360 rating in each specific market space. Companies can have one or more MGI 360 rating - one for each market. MGI 360 ratings are revised as important developments occur. While the MGI 360 rating process is comprehensive, this scoring system is not meant to be a predictor of company solvency, liquidity, absence of accounting fraud or stock performance. Access to MGI 360 Ratings is by subscription.
MGI Research is an independent industry research and advisory firm focused on disruptive trends in the technology industry. Through ratings, industry benchmarks, best practices groups, subscription research, market forecasts, advisory engagements, industry studies and conferences, MGI Research helps clients identify opportunities for reducing IT costs and minimize technology risks. MGI Research analysts work closely with business and technology organizations to help make timely go/no-go IT investment decisions, optimize vendor relationships, and create practical strategies for new initiatives in agile billing, payments management, order management, CPQ, contract lifecycle management and other elements of agile monetization platform (AMP).
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