TORONTO, Oct 01, 2021 (GLOBE NEWSWIRE) – Kvanto Payment Services Ltd. and its wholly owned subsidiary Kvanto Payment Services A / S (âcollectively Kvantoâ) are pleased to announce the completion of the acquisition agreement with Mobileware Technology Pvt. Ltd. (âMWTâ) which results from the completion of the due diligence and evaluation process previously announced on December 22, 2020. The acquisition will allow Kvanto to license and continue to implement its platform payment system combined with existing payment processing technology from MWT and customers. Licensing revenue is expected to begin this quarter from three banks under contract with MWT, which will represent and advance Kvanto in India’s exponentially growing digital payment processing market.
Under the terms of the agreement, Kvanto will own 51% of MWT in India after full payment of the purchase price of $ 4,750,000 to be paid in installments over the next 15 months. An initial amount of USD 250,000 was paid to MWT upon signing.
The advantage provided by MWT is its flagship product – TransXT – It is a banking API platform which is considered to be a proven cutting edge platform that extends the digital infrastructure / services of a bank. to businesses in the form of simple plug-ins. It gives one-stop API access to banking products / services such as account opening, bill payments, QR based payments, Aadhaar enabled payments, loans, insurance and many more. FinTechs have easy access to the MWT platform through built-in SDK access on mobile and other devices. In the area of ââbanking technology, MWT offers digital payment switches and payment orchestration systems to major banks like Yes Bank, Kotak Bank, Fincare Small Finance Bank, Suryoday Small Finance Bank, NSDL Payments Bank, among others .
The Kvanto Gateway is now integrated into the MWT solution. The licensed solution is expected to go live during this quarter and start generating transactional revenue from the start of the gateway rollout with the first three banks under contract with MWT.
When fully implemented, the total annual transaction amount under this cooperation is expected to initially generate approximately $ 14 million in license revenue directly to Kvanto, as a share of the annual transaction fees attributed to the Kvanto Gateway. In addition, Kvanto’s consolidated financial results are expected to benefit significantly when the acquisition of MWT is included.
The combined technology of this company is expected to become operational in several banks in India.
Covid 19 delayed the finalization of this acquisition in India and the overall advancement of Kvanto’s business plan.
The size and timing of this transaction also caused a delay in filing the Prospectus in Canada in order to request the listing of Kvanto’s shares on the Canadian Stock Exchange. This acquisition transaction and its timetable gave rise to additional information which had to be included in the prospectus and in the audited consolidated financial statements at the end of the year.
“We believe that the delays that we have experienced in our business plan caused by this transaction outweigh the timing of the listing and we believe that the implementation of this pre-registration agreement will add value to the company. and its shareholders, âsaid Jesper Skorstengaard, CEO of Kvanto. . âAlthough the listing process has been delayed, the timing to enter the Indian market is perfect,â he added.
âOur association with Kvanto comes at the right time, as the digital payments industry in India is booming – it is expected to grow at a CAGR of 21.07% to reach $ 71.561 billion by 2025. During pandemic, many more people have gone digital. and contactless transactions, and the digitization of banking services as part of the Digital India campaign has made it even easier for people to access, âsaid Satyajit Kanekar, CEO of Mobileware Technologies. He adds, âWith Kvanto’s knowledge and experience in digital payments, we are sure to develop advanced products that will add value to the digital economy in India and abroad. “
About Kvanto Payment Services:
Kvanto competes in the rapidly evolving digital payment solutions market. Customer adoption has proven Kvanto’s competence in the industry.
As a high-end European multi-connectivity payment service provider (holder of a PSP-ISO), Kvanto has a globally recognized payment gateway that integrates the main acquirers, who manage different payment methods and credit cards. payment, connecting online and offline businesses efficiently, affordably and reliably.
Kvanto has built an extensive network of partners and collaborators around the world. They are well-equipped and experienced designers of payment solutions for customers, regardless of their location and presence.
Kvanto Payment Services AS, based in Denmark, is a wholly-owned operating subsidiary of Kvanto Payments Services Ltd in Canada.
About Mobileware technology:
MWT’s mission is to create and develop scalable payment solutions that simplify the business and life of any organization requiring digital payment transactions. Their industry-leading platform – TransXT – is a plug-and-play open banking API technology that is changing the way digital payments are made. Also called âbank in a boxâ, the TransXT platform allows businesses to go online instantly.
The agnostic, borderless vertical platform creates a payment marketplace for customers who need easy and instant access to digital payment methods, using banks as a service channel. Technology enables banks, merchants, and startups to create monetization streams. It also integrates seamlessly with existing systems, ensuring interoperability. Powered by innovation, Mobileware Technology’s solutions address the rapidly evolving digital payments needs of banks, NBFCs, fintech companies, merchants and consumers.
In addition, the platform also integrates seamlessly with international regulatory frameworks, allowing TransXT to be instantly deployed in various countries.
For more information, contact:
Kvanto A / S Payment Services
CEO, Jesper V. Skorstengaard
Telephone: +45 4033 3396
Mail: [email protected]
All statements regarding our expected future financial condition, results of operations, cash flows, financing plans, business strategy, products and services, competitive positions, growth opportunities, management plans and objectives for future operations, including words such as “anticipate” “if”, “believe”, “anticipate”, “estimate”, “expect”, “intend”, “might”, ” could “,” should “,” will “, and other similar expressions are forward-looking statements and involve risks, uncertainties and contingencies, many of which are beyond our control, which may cause the results, performance or actual accomplishments differ materially from anticipated results, performance or achievements. Kvanto Payment Services A / S has no obligation (and expressly disclaims any obligation to) update or modify our forward-looking statements, whatsoever either as a result of new information, future events or otherwise.