PayU, a Hoofddorp, The Netherlands-based online payment service provider and Naspers’ fintech arm, acquired Wibmo, a Cupertino, CA-based provider of digital payment security and mobile payment technologies, for $70m.
The amount of the deal was not disclosed.
This strategic acquisition merchant network and Wibmo’s leadership in digital transaction security solutions to offer payments solutions to merchants and financial institutions in India and other high growth markets.
Led by Govind Setlur, founder and CEO, Wibmo is an innovative digital payment company that partners and integrates with banks in over twenty countries to offer payment authentication and risk-based decisioning across billions of online and mobile payment transactions.
The acquisition will enable PayU to build a digital payment ecosystem capable of harmonizing transaction processing on both issuing and acquiring side, to deliver an improved payment experience and success rates in online and mobile payments.
Additionally, PayU and Wibmo together will be able to work with merchants and financial institutions to offer targeted payment solutions leveraging data from hundreds of millions of Indian consumers annually.
This acquisition will also allow PayU to accelerate its credit business by leveraging big data to power credit on various online and offline merchants in partnership with leading lending players.
Given different capabilities and positioning in the value chain, Wibmo and PayU businesses will continue to run separately. However, both teams will work together to extract synergies and build business solutions from the two technology platforms. Setlur will become part of PayU’s leadership team, reporting into the PayU India CEO.
Wibmo will continue to operate and serve all of its clients as a wholly-owned subsidiary of Naspers’ PayU under the leadership of Govind.