PayU, the payments arm of South African internet conglomerate Naspers, has announced its foray into Southeast Asia by acquiring Singapore-based online payments solutions company Red Dot Payment (RDP).
Under the terms of the agreement, PayU has acquired a majority stake in RDP in a transaction valuing the company at US$65 million. The founder of RDP will continue to retain a stake in the company, while the majority of other shareholders will exit.
“We will now provide our existing global merchants access to Southeast Asia with single API integration, thus strengthening our global PayU Hub platform. PayU will continue to look for prospects to reinforce our footprints in this market,” said Laurent le Moal, CEO of PayU.
Randy Tan, CEO, and Founder of Red Dot Payment, added: “It has never been easy for global merchants to enter Southeast Asia as they benefit from RDP’s strong local connectivity combined with PayU’s global footprints and experience. We are pleased that RDP will be part of the Naspers’ fintech portfolio.”
RDP was founded in 2011 to provide payment solutions to enterprises of all sizes, such as online retail, hospitality, charity, and food delivery across Asia and beyond.
As per a Google-Temasek study, Southeast Asia is hailed as one of the fastest growing digital payments markets in the world, home to 350 million internet users across its six largest countries, exceeding that of the population of the US. PayU’s integration with RDP gives it a head-start to offer a cross-border product by offering more local alternative payment methods and connectivity.