It is confirmed that payment gateway company PayU India is going independent of the Ibibo Group (MIH India). According to Business Standard the eCommerce company Ibibo Group, that owns online travel platforms such as Goibibo.com, redBus.in, TravelBoutique Online (51 percent stake) and mobile marketplace Tradus.com, has exchanged its payments business PayU India for a minority stake in Naspers’ global payments business, PayU Global.
The move is part of a consolidation process under which all the local payments of Naspers will be consolidated into a global payment group, PayU Global.
Providing more information on the development, Ashish Kashyap, CEO of Ibibo Group shared that with this global consolidation the group has obtained a substantial minority stake in PayU Global along with 30-40 key eCommerce players from Latin America, Africa and other Central and Eastern European countries.
Though the valuation terms of PayUIndia haven’t been divulged, it is being said that the association with a global brand will help consolidate and expand Ibibo’s travel and online payment solutions globally. This would also mean that Kashyap along with Romero Rodrigues (CEO of Buscape Group from Latin America) will join the management board of PayU Global. Local country heads of payments’ businesses will now roll up to the global PayU entity.
The latest development comes close on the heels of the rebranding exercise PayU India did for PayUPaisa. With an intention to reposition PayUPaisa as a global brand, PayU India opted to alter the name of its flagship product to PayUMoney which was launched in 2011. What seemed to be a rebranding exercise was actually the plan to set up PayUPaisa for the international market, hive off to Naspers and take a stake in PayU Global.
In recent times we have seen rampant competition in the payment space whereby eCommerce companies have themselves started to develop and deploy their own iterations to handle the payment. Quite recently online shopping portal SnapDeal launched Safeship, prior to which eBay had already introduced eBay Guarantee. Even Flipkart, another popular virtual shopping destination, has PayZippy. Hence the move of consolidating all local payments under one global payment group makes perfect sense.
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