French payments company Ingenico Group has announced an agreement to acquire 100% in TechProcess, an Indian payments gateway provider, via its subsidiary EBS. TechProcess had been funded by Greylock Partners (in 2007)Nokia Growth Partners, W Capital Partners, Battery Ventures, among others. The deal is expected to close by the end of this quarter, and the value of the deal has not been disclosed.

The last major acquisition in this space was PayU’s acquisition of CitrusPay, for $130 million.

TechProcess, a company founded in 2000, has around 600 employees across 40 locations in India and offers an online payments gateway, the National Automated Clearing House (NACH), bill payments and mobile payments. Note that Techprocess, which runs billjunction, has received RBI approval to run Reserve Bank of India’s approval to operate as a Bharat Bill Payments Operating Unit (BBPOU), which will be able to connect with the central bill payments and settlement system called Bharat Bill Payment System (BBPS) of National Payments Corporation of India (NPCI).  Others who have received this approval include Oxigen, PayU, Itz Cash, Euronet, Paytm, Spice Digital, all banks, and the Indian government’s common service centers.

Ingenico’s revenue split

For the half year ended July 2016, payments accounted for 30% of Ingenico’s global business. Around 23% of the company’s revenues came from the Asia-Pacific region; it treats e-payments independently from a region, and e-payments were around 20.3% of its business, and its fastest growing segment at 20% YoY growth. The other business it is in is terminals.

MediaNama’s take

Ingenico says that through EBS, it has 50% market share in India; more importantly, it plans to ultimately be able to offer cross-border capabilities in India. Note that this acquisition comes at a time when doubts are being raised about the future of payments gateways in India, especially with the launch of the bank-owned payments system UPI. This perhaps explains the mention of cross-border payments, where a multi-national payments company like Ingenico will have a distinct advantage.

It looks like international payment companies want to break PayPal’s grip on cross-border payments. No other payments company has a hold on cross-border transactions like PayPal with a presence in 202 countries and the ability to process 25 currencies. Meanwhile, PayU said that they would be looking at cross-border payments in the UK, China, and the United States following the merger with Citrus Pay. It will be interesting to see which countries TechProcess and Ingenico will be starting their services in.