Mobile point of sale (PoS) solution provider Mswipe Technologies Pvt. Ltd. has partnered offline merchant PoS division of PayU India. This partnership will allow the merchants of both businesses to access online and offline payments.
It is reported that the PayU’s offline merchant acquisition team had acquired over 9,000 offline merchants in the country. All of the company’s offline merchants along with its PoS business will also get transferred to Mswipe as part of the deal.
Launched in 2011 by Manish Patel, Mswipe is a PoS service provider for a large merchant base. It also allows merchants to undertake plastic card payments through smartphones or ordinary feature phones. Headquartered in Mumbai, the company claims to have a team of about 2000 employees.
PayU India is the flagship company of Naspers Group. It was established in 2011 and has over 250 payment methods and PCI (Payment Card Industry)-certified platforms. It claims to have more than 1,800 payment specialists based in local markets supporting PayU’s 200,000+ merchants and consumers making online payments.
On the acquisition, PayU India CEO, Amrish Rau, said.
We want to remain focused on driving disruptive payments product in the online payments space and decided to work with a partner for the offline side. This partnership allows us to work closely with Mswipe, which has been making a great stride in the offline space
Commenting on the partnership, Manish Patel, founder, and CEO, 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 consolidate its leadership positions in their areas of focus
Mswipe claims that 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. This association will also help both businesses acquire new merchants and gain wider acceptance across categories as a payment option.
In the last one year, transaction value on the Mswipe network has grown 4 times while the number of installations has grown 3 times. The thriving customer base of Mswipe also reveals a growing need to accept digital payments across retail categories, including grocery stores, eateries, pharmacies, and apparel vendors, mobile and electronic shops.
On joining hands with Mswipe, PayU chief executive, Amrish Rau said:
We are laser focused on the online space and continue to increase our market share through new fintech products and innovation. This partnership allows us to focus on our core of enabling digital payments across more brands and merchants across the country
In September 2016, PayU India acquired their rival online payment gateway CitrusPayfor $130 Mn, making it by far the biggest M&A cash deal in Indian fintech. Earlier this month, Kreditech secured $119 Mn from PayU.
As the part of the bilateral partnership, PayU’s wide assortment of merchants across sectors will have an access to Mswipe for all their POS services related requirement. The company will continue to expand its direct presence in the online fintech and payments space.