Wibmo's Payment Gateway Solution To Aid Digital Distribution Of Banks, Financial Firms

PayU-owned online payments processor Wibmo is developing a payment gateway solution to aid digital distribution capabilities of large banks and financial services firms, ET reported.

Wibmo was acquired by Naspers-backed fintech major PayU for $70 Mn in 2019

Suresh Rajagopalan, CEO of Wibmo, told ET that its payment gateway business is around routing ecommerce transactions to payment aggregators, card schemes and networks, adding that the company has bagged several large contracts in India and overseas.

As per the report, Wibmo has also created a tokenisation solution, which enables consumers to check out from ecommerce sites and ensures banks are in compliance with Reserve Bank of India’s tokenisation guidelines.

Inc42 has reached out to Wibmo for a comment. The story will be updated based on the response.

Additionally, Wibmo has also launched a prepaid issuance platform for both physical and virtual cards, using which consumer-facing platforms can bring forth their own payment solutions.

“We had a prepaid stack in the past but that had not taken up strongly then, but over the last three to four years, we have caught up with all the compliance requirements in prepaid and launched it with large brands,” Rajgopalan added.

This comes at a time when PayU is preparing to float its initial public offering (IPO) in India later this year.

In line with its plans to go public, PayU restructured its top leadership, appointing Arvind Agrawal as its chief financial officer. Prior to joining PayU, Agrawal served as the CFO of Nykaa and handled its IPO.

PayU’s listing ambitions got a major boost earlier this week after the financial services firm got RBI’s in-principle nod to operate as a payment aggregator, something it had been waiting for the past 15 months.

Meanwhile, PayU has also partnered with National Payments Corporation of India (NPCI) to offer merchants a credit line on UPI.

PayU’s revenue grew 21% year-on-year to $497 Mn in the first half of the fiscal year 2023-24 (H1 FY24), as against $412 Mn in H1 FY23.

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