PayU eyes Asian expansion with Red Dot Payment investment
E-commerce payments and fintech services provider PayU has acquired a majority stake in Southeast Asia online payment software company Red Dot Payment in order to expand into the Asian market.
Amsterdam-based PayU says it has invested more than $700 million in the last three years in fintech companies or as part of mergers to advance its technology into high-growth markets.
"This investment is PayU's first step towards expansion in the Southeast Asia region," PayU CEO Laurent le Moal said in a Friday press release. "We will now provide our existing global merchants access to that region with a single API integration, thus strengthening our global PayU Hub platform."
The acquisition will allow PayU to grow in the Asian market, while also looking for other "prospects to reinforce our footprints in this market," le Moal added.
Red Dot Payment was formed in 2011 by a group of payments experts focusing on the verticals of online retail, hospitality, charity and food delivery.
It has never been easy for global merchants to enter the Southeast Asia market, but that can change with the combination of PayU and Red Dot technology, said Randy Tan, CEO and founder of Red Dot Payment.
Those merchants will benefit from "RDP's strong local connectivity combined with PayU's global footprints and experience," Tan said in the release.
PayU operates as the payments unit of Naspers, a global consumer internet group and technology investor. Naspers operates and partners with internet businesses across Europe, Asia, Africa and the Americas.
PayU says it supports more than 300,000 merchants, allowing them to serve millions of consumers making payments online with more than 250 different payment methods. The company also says its market base has the potential to reach 2.3 billion consumers.
Three months ago, PayU acquired Wibmo, a California-based digital payments company, to support its growth strategy in India.