PayU acquired mobile payment solutions company Wibmo for $70
Value of India’s current credit market is $600
PayU is going to use Wibmo platform to enhance its credit business.
PayU a fintech arm of South African media and e-commerce group Naspers has acquired a California based payment security and mobile payment solutions company Wibmo for $70 Million. This partnership is meant to concentrate on accelerating PayU’s credit business in India and offline digital payment space. Under this deal, PayU and Wibmo will work separately and Wibmo, digital payment security, and mobile payment technologies firm, will continue to operate and serve all of its clients as a wholly-owned subsidiary of PayU.
With the acquisition, PayU, which provides all forms of digital payment for online merchant transactions and offers financial solutions for local and cross-border merchants in emerging markets as well as point-of-sale credit and alternative payment methods will now own complete gamut of payment offerings, from payment gateway solutions to security solutions in which Wibmo is master. By this deal, PayU has invested $500 Million in India.
The deal will also influence Wibmo’s power in financial services and PayU’s merchant network. Wibmo currently operates with 60 banks in India on digital payment security for card transaction and offers an annual transaction of close to 1.5 billion. India’s current credit market is $600 Billion but after exclusion home and auto credits, this number is still reached to only $300Billions. Therefore PayU can use a network of Wibmo to enhance its credit business.
Wibmo came into action in 1999 from Veena Mistry and Govind Setlur. The company provides digital payment solutions catering to banks, consumers and merchants. Apart from this it also provides a hosted payment gateway that lets merchants accept payments through debit/credit card, the point of sale l, net banking and local payment methods. Wibmo has a huge list of investors including Footprint Ventures, Accel, Western Technology Investment and Intel Capital. The previous year in March Wibmo bought Delhi-based payments technology startup Mypoolin in a cash-and-stock deal.
According to Aakash Moondhra, finance chief, PayU Global, “India is the main market for PayU. We are partnering with leading banks to enable digital banking. Merchants will gain with higher conversions rates and enhanced sales, and consumers will have a frictionless experience in completing digital payments transactions.”
Prior to recent acquisition, PayU has also acquired mobile-based payments firm Cobboc Pvt. Ltd in 2014 to strengthen payment solution PayUMoney, which it shut in 2018.
PayU is going to harness the data flowing through the Wibmo platform to assist it to assess merchants better so that they can offer credit to these entities in partnership with financial institutions.
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