Through this strategic investment, PayU, the payments and fintech business of Prosus, intends to utilise Mindgate’s capabilities to scale digital payment advancement worldwide. Additionally, the deal includes PayU acquiring a 43.5% stake in Mindgate. However, the majority of ownership is set to remain with Mindgate’s founders.
The announcement comes just a month after PayU teamed up with AdvantageClub.ai to unify and improve employee engagement, corporate rewards recognition, and sales incentive automation, benefits, surveys, and communities into a single platform. By integrating AdvantageClub.ai, PayU intended to enable users to redeem rewards, optimising their experience and scaling merchant engagement while also expanding its reach in India’s loyalty rewards sector.
Investing in Mindgate is set to support PayU in actively contributing to the current advancement of India’s digital payments sector, which is assisted by instant payment systems such as UPI, developed by the National Payments Corporation of India (NPCI). With NPCI further scaling UPI domestically and globally, Mindgate facilitates this expansion by offering the end-to-end payment infrastructure stack for a range of banks operating in India. Also, PayU centres its efforts on further augmenting real-time payments and accelerating the worldwide adoption of ‘Made in India’ systems.
Furthermore, commenting on the news, representatives from Mindgate mentioned that the collaboration with PayU allows their company to advance its footprint outside of India, enabling it to merge its knowledge in real-time digital payments with the latter’s market reach. Additionally, the alliance is set to deliver secure and scalable payment solutions for banks, businesses, and merchants, while also solidifying Mindgate’s position in the evolving global payments landscape. By making this strategic investment in Mindgate, PayU also highlights its commitment to assisting the Indian fintech ecosystem by offering the required resources to promising companies and supporting them in developing platforms that meet the needs, demands, and preferences of consumers, businesses, and financial institutions.
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