Qiwi has reached an agreement with Otkritie Financial Group to buy the Contact money transfer system and the Rapida payment processing system.

Moscow-based Qiwi will pay for the acquisition in stock, issuing roughly 5.6 million shares to Otkritie in exchange for the payment systems. The acquisition is expected to occur in two phases by mid-September 2015.

The deal, announced May 14, expands Qiwi's reach in the remittance market.

"Money remittance is one of the key market verticals for Qiwi and, with this transaction, we believe that there will be an opportunity to grow our market share and leverage the ecosystem that we have built to date," said Sergey Solonin, chief executive of Qiwi, in a press release.

As part of the agreement, Qiwi and Otkritie will also cooperate on developing and implementing new electronic products and services for the financial services market.

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