Nium, a global payments platform, reveals that it has entered a definitive agreement to acquire Wirecard Forex India Pte. Ltd, which serves as a foreign currency exchange, pre-paid card, and remittance service provider for Indian markets.
Wirecard Forex has been licensed by the Reserve Bank of India (RBI) to operate as an Authorized Category II Money Exchange Dealer (AD II). The acquisition will reportedly include Wirecard’s AD II license. With this permit, Nium will be able to directly engage in various payment services businesses across India. This may include supporting currency conversion, fund transfers, and pre-paid card issuance.
Nium maintains one of the widest licensing portfolios of any independent payments service provider (PSP). The Fintech firm has issued around 30 million physical and virtual cards. It has operational licenses in 11 different jurisdictions, which includes direct card issuing capabilities in 24 countries and in around 40 major currencies.
Prajit Nanu, Co-founder and CEO at Nium, stated:
“We’re seeing an accelerated move to digital payments as companies modernise their infrastructure to capitalize on the post-COVID economic recovery. More companies are turning to our global payments stack to embed financial services quickly. This acquisition broadens our licensing portfolio, extends the suite of digital payments services we can offer in India, and provides us with a physical footprint to provide more support in metro areas.”
Nium’s acquisition of Wirecard Forex has come at a time when the prepaid card market in India is on track to experience a CAGR of 40.5% from 2021 – 2026. Fueling this considerable growth is an increase in the adoption by businesses seeking quick and convenient payment processing, payment flexibility, and faster reimbursements.
As consumer spending begins to recover, gift cards, meal cards, travel cards, and payday cards will be used frequently by Indian businesses and individual consumers.
Pratik Gandhi, Chief Operating Officer at Nium, remarked:
“Nium continues to expand its global operations through strategic acquisitions. Wirecard Forex has extensive reach throughout India and will enable us to deliver next-generation payment services across all major metropolitan cities.”
Wirecard Forex maintains 23 branch offices across India, which includes the New Delhi, Mumbai, Kolkata, Chennai, Gurgaon, Hyderabad, Pune, and Bengaluru locations.
Following the acquisition, all of the firm’s 190 workers will be joining Nium. This acquisition, which is Nium’s second in just a month, has come after the company acquired Ixaris. This latest acquisition should be finalized by Q3 2021, and it is currently subject to customary closing conditions, such as approval by the local banking control authority.
The financial terms of the deal have not been shared publicly.