Digital Payments facilitator, PayU, has acquired California-based digital payment security firm, Wibmo, for $70m (53.6m), according to a press release that was published last Friday (April.12th).
With the acquisition, PayU, which offers all forms of digital payments for online merchant transactions, will now own the entire range of payment offerings previously owned by Wibmo.
PayU & Wibmo acquisition
Acquiring the company will enable it to build a robust digital payment system ecosystem, PayU said.
“Through the acquisition of Wibmo, our endeavuor is to positively impact and add value to the entire ecosystem including banks, consumers and merchants, with the combined service offerings of PayU and Wibmo,” said Aakash Moondhra, the chief financial officer of PayU Global.
“We will partner with leading banks to enable digital banking, merchants will gain with higher conversions rates and increased sales, and consumers will have a frictionless experience in completing digital payments transactions.”
Digital payments in India
The acquisition combines PayU’s strong merchant network and Wibmo’s leadership in digital transaction security to offer industry-leading payment solution merchants and financial institutions in India and other high-growth markets, PayU said.
“By combining our track record and expertise in payment security and mobile payments with PayU’s strong merchant network and heritage in payments, the combined entity will be focussed on delivering more secure and seamless payments experience to its customers,” said Govind Setlur, founder and CEO of Wibmo.
Under the deal, Wibmo and PayU businesses will continue to run separately. However, both teams will work together to build unique business solutions from the two technology platforms.
Govind will become part of PayU’s leadership team, reporting into the PayU CEO, according to the press release.
Wibmo will continue to operate and serve all of its clients as a wholly owned subsidiary of the Netherlands under the guidance and leadership of Govind.
The company said the acquisition takes the company’s financial investment total past the $500m (£383m) mark, putting the company within the top 5 leading global fintech investors over the last two years.