London-based Rapyd offers payment services to transfer electronic funds across borders via various payment modes such as digital wallets, bank transfers, and cash. Till date, the fintech company was missing out on the ability to process debit and credit card payments sans any third-party services.
To facilitate the same, the fintech firm has acquired Korta (Kortathjonustan hf), which is an Icelandic credit card payment processing company. As of now, the amount involved in the all-cash deal remains undisclosed.
Why Rapyd chose Korta?
Founded by Arik Shtilman back in 2015, Rapyd helps customers and businesses pay and be paid. Its fintech-as-a-service platform lets cross-border payments and is touted to operate the world’s largest local payments network that connects over 2 billion consumers across the world. There are convenient options for customers letting them access both payment options and cash transfers.
Korta processes $2.5 billion in payments for Mastercard and Visa every year and generates $40 million annual revenues. With the acquisition, Rapyd will get online acquiring and POS (point-of-sale) capabilities as it grows its worldwide footprint.
Acquisition amidst COVID-19 crisis
The acquisition has been made possible by the COVID-19 crisis. The deal was sealed via the video conferencing tool Zoom as there are travel restrictions across Europe. Furthermore, Rapyd added that they will be making more such acquisitions as soon as the crisis is over.
It believes that Korta’s omnichannel card and Rapyd Global Payments Network can provide merchants irrespective of their size with a much better experience than the current ability that serves over 900 local payment methods in more than 100 countries.
Notably, in October 2019, Rapyd secured $100 million (nearly €92 million) Series C funding, in a round led by Oak HC/FT along with participation from Tiger Global, Coatue, General Catalyst, Target Global, Stripe and Entrée Capital.
Main image picture credits: Rapyd
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