Tokyo-headquartered NTT Data, a leading IT services provider, has acquired 55.35 per cent stake in Atom Technologies, a subsidiary of 63moons technologies, for an aggregate consideration of $9.24 million (Rs 650 million).
Incorporated in 2005, Atom Technologies is a leading payments service provider focused on creating an end-to-end payments ecosystem over the internet, IVR, mobile and point-of-sale (PoS) through online and offline platforms. At present, the company processes more than 150 million transactions worth $10 billion across a merchant population of over 150,000.
This signals NTT's foray into the Indian payments market. NTT is one of the largest IT companies globally with revenues of $19 billion.
"We believe the Indian payments market has huge potential, pillared by consistent economic growth and the government's strong initiative towards digital payments. Our payments business in Japan, as well as South East Asia, will help Atom in providing cross-border payments services to their merchants. Moreover, our customer base and development capability will allow Atom to upward its growth-trajectory. We commit to contributing to the Indian society with better payments services by partnering with Atom," said Isao Arima, senior vice-president, NTT Data.
The foray into the payments market in India is a key strategic decision for the $19-billion company, which has a pan–Asian focus on payments and has acquired companies in Malaysia, Vietnam, Hong Kong, and Thailand, and is expected to play a pivotal role in its expansion strategy.
"Atom is one of the first companies in India to offer online digital payments services. The company has grown exponentially over the years and has great potential to grow further. In line with the strategy of 63moons to exit from the market ecosystem, we were looking for a reliable partner that would elevate our institution to greater heights," said S Rajendran, managing director and chief executive officer, 63moons technologies.
Atom is India's first company to have created a multi-channel payments platform covering PoS, online and IVR, as well as mobile. This partnership is a strong endorsement of the rapid strides made by the two countries in the digital sector and will help Atom to leverage NTT's presence across the globe and emerge as a large global payments entity. Utilising NTT's relationship across the spectrum, Atom aims to further broaden its universe of customers, both in India and globally.
Dewang Neralla, chief executive officer, Atom Technologies, said, "This acquisition endorses the immense value created by Atom. We look forward to greater synergies and to implement NTT's global learning into the Indian markets and thereby further enhance the payments ecosystem in the country."