Mobile point-of-sale (PoS) services provider Mswipe Technologies Pvt. Ltd has acquired the offline merchant PoS division of digital payments firm PayU India. According to the deal terms, Mswipe has taken over the offline merchant acquiring the business of PayU India.
As a part of the deal, Mswipe will merge PayU’s existing offline POS division team into its existing operations and workforce expanding its network to 2,20,000 terminals, across 550+ cities with a combined team strength of 2,000+ employees.
Manish Patel, founder and chief executive officer, Mswipe, said: “POS terminals are the preferred medium of payments by customers to transact digitally at merchant locations. The partnership with PayU is mutually beneficial to both companies as it helps each consolidates its leadership positions in their areas of focus.”
He also added, “The fastest way to increase cashless transactions is by rapidly growing the number of POS terminals across the country. While traditional merchant acquirers have focused on large businesses, the needs of small and mid-sized merchants have largely been ignored. With affordable mPOS devices and acceptance infrastructure, we are trying to enable digital payments acceptance for the ubiquitous merchant.”
Mswipe claims 80% of its merchant base comprises small and medium enterprises (SMEs) and many of them can move to online payments through PayU’s payment gateway. The association will also help both businesses acquire new merchants and gain wider acceptance across categories as a payment option.
PayU India was acquired Citrus Pay last year. It is among the leading online payment businesses in the country processing online transactions worth Rs 6,000 crore per month. PayU had an offline merchant acquisition team and has so far acquired over 9,000 offline merchants in the country.
B. Amrish Rau, CEO, PayU India said, “We are laser-focused on the online space and continue to increase our market share through new fintech products and innovation. We are glad to witness the fruition of our partnership with Mswipe, crystallized by this transaction. This partnership allows us to focus on our core of enabling digital payments across more brands and merchants across the country. As the leader in internet payment services, we remain committed to realizing the Government’s Digital India vision by bringing access to digital payments to all. We will continue to focus on providing most comprehensive payment options to all our merchants.”
The total equity funding of Mswipe is about $ 25 Million from investors like Falcon Capital, Axis Bank, DSG Consumer, Matrix Partner, Meru Capital and others. Read more about Indian Startup Ecosystem
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