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PayU buys payment security firm Wibmo for $70 million

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Updated: April 13, 2019 2:42:03 AM

Wibmo is known for its hosted risk-based authentication and payment security services.

The investment takes PayU’s fintech investment total past the $ 500-million mark.

Naspers’ fintech arm PayU, which provides online payment services, has acquired Wibmo, a digital payment security firm based in Cupertino, California, for $70 million. Talks between the parties for the deal is believed to have commenced late last year, according to person close to the deal.

Wibmo is known for its hosted risk-based authentication and payment security services. It also provides solutions ranging from mobile payments, fraud and risk management, prepaid solutions and a host of merchant services. The firm integrates with banks in over 20 countries to offer payment authentication and risk-based decision making across billions of online and mobile payment transactions.

According to a release issued by Avendus Capital – the strategic and financial advisor to Wibmo on the transaction – the acquisition will help PayU accelerate its credit business by leveraging big data to power credit to various online and offline merchants in partnership with leading lending players.

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In a phone conversation with FE, Karan Sharma, co-head, digital and technology investment banking at Avendus Capital, said Wibmo’s capabilities are complimentary with PayU’s vision and business while further enhancing the core offerings that PayU has with the market.

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 unique business solutions from the two tech platforms.

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“Govind Setlur, the founder and CEO at Wibmo and the rest of the team will continue to build it further,” Sharma added.

The investment takes PayU’s fintech investment total past the $500-million mark.

Aakash Moondhra, CFO at PayU Global, said India is a priority market for the firm. “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,” he said.

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