On Friday, 5 July 2019, PayU announced the acquisition of a majority stake in Red Dot Payment (RDP) — an online payment solutions provider in Southeast Asia. With this, PayU expands into the Southeast Asia region, bringing the total amount deployed in fintech investments and M&A to just over $700 million in the last three years.
This move is in accordance with PayU’s aim becoming the leading payments solution provider in high-growth markets and one of the largest fintech investors in the world.
According to the company, RDP has grown into Singapore’s largest home-grown and trusted online payment solution for fintech companies. It aims to deliver innovative, secure and customised payment solutions for all enterprises, such as online retail, hospitality, charity, food delivery and more.
A study by Google-Temasek shows that Southeast Asia is one of the fastest growing digital payments markets in the world, and is expected to triple in size to US$240 billion in total payments volume by 2025.
The region is already home to 350 million internet users across its six largest countries, exceeding that of the population of the United States. This presents an immense business potential for global merchants.
With this deal, PayU hopes to successfully create a winning proposition for global merchants by integrating RDP platforms into the PayU Hub. PayU can now build a best-in-class cross-border product by offering more local alternative payment methods and connectivity.
Laurent Le Moal, CEO of PayU, says, “this investment is PayU’s first step towards expansion in the SEA region. We will now provide our existing global merchants access to Southeast Asia, thus strengthening our global PayU Hub platform”.
“Owing to the immense potential that the SEA market presents, PayU sees a vast opportunity in this region to grow and innovate further. We will continue to look for prospects to reinforce our footprints in this market.”
“As part of our business strategy, PayU will collaborate with the promising founders who are driven by an entrepreneurial passion. We’re excited to welcome Randy and the team to PayU as we continue to pursue our vision of creating a world without financial borders”, adds Le Moal.
Randy Tan, CEO and Founder of Red Dot Payment, says, “we are proud of how far we have come and that PayU, a leading global fintech operator and investor, recognises the strength, depth, and breadth of the company that we have built with unwavering dedication over the past eight years”.
“We are pleased that RDP will be part of the Naspers’ fintech portfolio as we look forward to the continued extension of our business and market position in Southeast Asia. [It is our goal] to be the fintech payment solutions champion in this region.”
Under the terms of the agreement, PayU has acquired a majority stake in RDP in a transaction valuing the company at $65 million.
Edited by Jenna Cook
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