TORONTO, Oct. 01, 2021 (GLOBE NEWSWIRE) — Kvanto Payment Services Ltd. and its wholly owned subsidiary Kvanto Payment Services A/S (“collectively Kvanto”) is pleased to announce the finalization of the acquisition agreement with Mobileware Technology Pvt. Ltd. (“MWT”) which resulted from the completion of the Due Diligence and Valuation process previously announced on December 22, 2020. 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. License Revenue is expected to commence in this quarter from three banks under contract with MWT, who will represent and move Kvanto forward through the exponentially growing digital payment processing market in India.
Under the terms of the agreement, Kvanto will own 51% of MWT in India after full payment of the USD $4,750,000 acquisition price which is to be paid in installments over the next 15 months. An initial USD $250,000 was paid to MWT on signing.
The advantage MWT provides lies within its flagship product – TransXT – This is 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. 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.
When fully implemented the total amount of annual transactions in this cooperation is initially expected to yield approximately USD $14 million in licensing revenue directly to Kvanto, as their share of the annual transaction fees attributed to the Kvanto gateway. In addition, Kvanto’s consolidated financial results are expected to benefit materially when the acquisition of MWT is included.
This venture’s combined technology is expected to become operational throughout multiple banks in India.
Covid 19 caused delays in finalizing this acquisition in India and the overall advancement of the Kvanto business plan.
The importance and timing of concluding this transaction also caused a delay in filing the Prospectus in Canada in order to apply to have the Kvanto shares listed on the Canadian Securities Exchange. This acquisition transaction and its timing has resulted in further disclosure which needed to be included in the Prospectus and in the Year end Audited Consolidated Financial Statements.
“We believe the delays we have experienced in our business plan caused by this transaction outweigh the timing of the listing and we expect that having this agreement in place prelisting will add value to the Company and its shareholders”, said Jesper Skorstengaard, CEO of Kvanto. “Albeit the listing process has been delayed, the timing for entering the Indian market is perfect”, he added.
“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,” says Mobileware Technologies CEO Satyajit Kanekar. He further adds, “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.”
About Kvanto Payment Services:
Kvanto competes in the rapidly changing digital payment solutions market. Client adoption has proven Kvanto’s competence in the industry.
As a premium European multi-connectivity payment service provider (holding a PSP-ISO), Kvanto has a world-recognized payment gateway that integrates leading acquirers, who handle different payment methods and payment cards, linking online and offline businesses efficiently, affordably, and reliably.
Kvanto has built an extensive network of partners and collaborators from across the world. They are well-equipped and experienced designers of payment solutions for customers no matter their location and presence.
Kvanto Payment Services AS, based in Denmark, is a 100% operating subsidiary owned by Kvanto Payments Services Ltd in Canada.
About Mobileware Technology:
MWT is in the business of creating and developing scalable payment solutions that simplify business and life for any organization that requires digital payment transactions. Their cutting-edge platform – TransXT – is a plug-and-play open banking API technology that is changing the way digital payments are made. Also called ‘bank in a box’ TransXT platform allows businesses to go live instantly.
The vertical agnostic and borderless platform create a payment marketplace for customers who require easy and instant access to digital payment methods, using banks as a channel of service. The technology enables banks, merchants, and startups to create monetization streams. It also fits perfectly with the existing systems, ensuring interoperability. Backed by innovation, Mobileware Technology solutions are for the rapidly changing digital payments requirements of banks, NBFCs, fintech companies, merchants, and consumers.
Furthermore, the platform also seamlessly integrates with international regulatory frameworks, enabling TransXT to be rolled out to various countries instantly.
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Kvanto Payment Services A/S
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