Mumbai-based Mobileware Technologies, an API banking and digital payments firm, today announced it has raised $4.75 million in funding from Kvanto Payments Services to fund the development of advanced product features for its hosted API banking platform as well as other banking-tech products.
With this, the Denmark-based firm will be acquiring a 51% stake of MWT in India after full payment, which is to be paid in installments over the next 15 months. An initial $250,000 was paid to MWT on a signing, the statement said.
The acquisition will allow Kvanto to license and pursue the implementation of its payment platform combined with MWT’s existing payment processing technology and customer base.
The advantage that MWT provides lies within its flagship product – TransXT – an API Banking platform that is considered as a proven state-of-the-art platform that extends a bank’s digital infrastructure/services to businesses as simple plugins.
According to the firm, It gives single-point API access to banking products/services like Account Opening, Bill Payments, QR-Based Payments, Aadhaar Enabled Payments, Lending, Insurance, and many more. Fintechs have easy access to MWT’s platform through integrated SDK access over mobile and other devices. In the banking-tech domain, MWT offers digital payment switches and payment orchestration systems to large banks like Yes Bank, Kotak Bank, Fincare Small Finance Bank, Suryoday Small Finance Bank, NSDL Payments Bank, among others.
The Kvanto gateway has now been designed into the MWT solution. The solution under license is expected to go live in this quarter and begin generating transactional revenue immediately as the gateway rollout commences with the first three banks under contract with MWT.
This venture’s combined technology is expected to become operational throughout multiple banks in India, it said.
“Our association with Kvanto happens at the right time when the digital payments industry in India is booming – it is expected to grow at a CAGR of 21.07% to reach US$71.561 trillion by 2025. In the pandemic, a lot more people opted for digital and touchless transactions, and the digitization of banking services under the Digital India campaign has further made it easier for people to access,” said Mobileware Technologies CEO Satyajit Kanekar.
He further said “With Kvanto’s knowledge and experience in the digital payments space, we are sure to develop advanced products that will add value to the digital economy in India and overseas.”
Kvanto has a global reach, with more than 400 banks using its payment gateway services. Its white-label solution can be embedded into existing customer applications, ensuring safe and reliable transactions. Through the combined technology, Mobileware will offer an enhanced service portfolio to banks and other partners.