Mswipe Technology acquires the offline merchant business of PayU

Mswipe Technology, the mobile point of sale (PoS) solution provider, has acquired the offline merchant business of PayU payment gateway. As part of the deal, Mswipe will merge PayU’s existing offline PoS division team (which counts more than 9,000 merchants under its purview) into its existing operations so that all PayU’s offline merchants along with its PoS business will get transferred to Mswipe. The shift in business strategy of PayU is probably because it wants to focus only on digital side and collaborate with a partner for offshore business.

Amrish Rau, CEO PayU India, said that “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”. He further added that “We have over 3 lakh merchants using our platform and we do come across merchants who have a need for offline payment acceptance. Having a strategic partner like Mswipe allows us to complete our portfolio and provide comprehensive payment options to all our merchants”.

The collaboration will help both the firms gain from each other. With ~80% of Mswipe’s merchant base being small and medium enterprises (SMEs), many of them could move to online payments through PayU’s payment gateway. This association may also help both businesses acquire new merchants and gain wider acceptance across categories as a payment option.