MOBILE point of sale (PoS) provider Mswipe has taken over the offline business of online payments leader PayU India in a partnership that lets both businesses focus on their strengths.
PayU processes nearly a billion dollars of online transactions a month, but it also has an active PoS team that had signed up more than 9,000 offline merchants. These will now be transferred over to Mswipe and the merchant acquisition team will be merged with Mswipe’s existing operations.
“It is difficult to be leaders in both offline and online businesses, as they have two different processing capabilities. The partnership with PayU is mutually beneficial to both companies as it helps us consolidate our leadership positions in our respective focus areas,” Mswipe CEO Manish Patel told The Times of India.
The benefits cut both ways. As much as 80 percent of Mswipe’s merchant base is small and medium enterprises (SMEs), who are now likely to be pushed towards PayU as they begin to adopt online payments.
Mswipe will not only receive an injection of new merchants, but PayU is also likely to refer its online only customers looking to acquire PoS capabilities to them.
PayU India CEO Amrish Rau told Inc42: “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.”
— Haresh Panjavani (@linkharesh) May 17, 2017
A recent report from Google and Boston Consulting Group found the digital payments industry in India is projected to reach US$500 billion by 2020, contributing to 15 percent of GDP.