There are too many fintechs out there, but many can’t survive on their own.

A Barron’s analysis of likely deal-making in the fintech sector after the landmark Visa-Plaid deal shows a mixed picture.

According to a banker, too many fintechs had sprouted and were jostling for market share. As of November 11, there were 58 unicorns in the space with an aggregate valuation of $213.5 billion. So there could be a consolidation leading to more deal-making. But this is unlikely to be “an avalanche,” was another view.

Visa-Plaid as catalyst

According to Kathleen Utecht, a managing partner of Core Innovation Capital, the Visa-Plaid deal could work as a catalyst for sales of fintechs to entities across the spectrum, including banks, other fintechs, even non-fintechs.

Fintechs have proved their models and technological premises, but are yet to acquire scale and profitability, says Barron’s. Increasingly, chances are these startups will start to partner the very banks they set out to disrupt or will be acquired by them. Alternatively, other financial companies (as in the Visa-Plaid deal) will take them over.

Plausible candidates

Marqeta provides API technology that helps companies like Square, Instacart and DoorDash issue cards and process payments for their customers. The last funding round of $260 million in May 2019 valued the company at approximately $2 billion. In October, Visa and Marqeta partnered to offer fintechs in Australia, Hong Kong, Japan, Malaysia, New Zealand, Philippines, Singapore, Taiwan, Thailand, and Vietnam a new way to themselves internationally accepted. Fintechs in these countries can now turn their user account balances into digital cards.

Credit Karma is another startup that may be in play. The firm provides financial education and free credit scores. In aggregate, this startup has raised $868 million to date.

Barron’s thinks Deck Capital is also a likely player in the M&A stakes. The listed company is a lender to small businesses. Its IPO price was $20, but Deck Capital currently trades at $4.15. Its options are to sell itself or make a strategic purchase. Alternatively, it may also buy a small bank.

Related Story: Fintechs Across The Asia Pacific Can Go Global Using The Visa-Marqeta Alliance