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NTT Data Payments Services eyes top slot, scouting more acquisitions

NTT Data Payments Services eyes top slot, scouting more acquisitions


NTT Data Payments Services eyes top slot, scouting more acquisitions

Payments solutions provider NTT Data Payments Services India, which has grown through a clutch of acquisitions including that of Atom Technologies, is keen to do more such deals as it seeks to become a top-five player in the next few days.

The domestic arm of the Japanese tech major last September received in-principle approval from the Reserve Bank for a payment aggregator licence and is today among the top ten in this already cluttered space. It has an annual transaction value of Rs 150,000 crore and a volume of over 10 crore transactions and caters to more than 6 million merchants across the country in sectors such as education, government, retail, BFSI, healthcare, and share broking among others. It is an end-to-end payment services company offering a range of payment solutions through online and offline platforms via points of sale machines, payment gateway, interactive voice response (IVR), and mobile applications, wallets, BNPL, QR codes, and white-labeled solutions.

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“We’re among the top 10 payments services providers here now and are working on to be among the top five by 2025. To achieve this position we are ready to continue with our acquisitions strategy. This is also part of the group’s global strategy of becoming the largest in the APAC region by 2030,” Rahul Jain, the chief financial officer and the India spokesman, told PTI here. Jain said globally also the company has been into aggressive acquisitions (having completed more than 100 in the past 15 years) and more than 15 since 2010 here. Since its takeover of Atom, originally promoted by Dewang Neralla, in 2019, they’ve grown over 30 per cent here.

Recently, the company raised Rs 90 crore from the parent NTT Data Corporation, a USD 30 billion giant, to push its ambitious growth plan, amidst expanding digital payments landscape here. Rs 20 crore from that funding has already been invested to make QR codes more merchant friendly and will invest Rs 50 crore to build a more robust tech stack, he said. On the domestic revenue side, Jain said the company has been cash positive in the past two-three years, and closed 2021 with a topline of Rs 90 crore, and Rs 150 crore in 2022. The company expects Rs 200 crore this year and to be Rs 350 crore company by 2025 when it expects bottomline to be around Rs 10 crore, up from the present Rs 2-3 crore.

The company is also looking to make a foray into newer segments such as Bharat bill payment operating unit, apart from exploring potential acquisitions. Leveraging its parent company’s capabilities, the domestic unit is also initiating cross-border commerce, thereby connecting India and global customers, Jain said, adding but whatever it does it will be only in the fully regulated domains and thus it will be allowing its platform for payments in the online gaming, crypto and loan apps. Jain expects the number of merchants using digital payments to touch 30-40 million from the present 20 million in the country now. NTT Data Corporation is one of the top 10 IT service providers globally and the payments division has a significant presence across Japan, Hong Kong, Singapore, Vietnam, and Malaysia. NTT Data operates Cafis, which is the largest card payment processing network in Japan.

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  1. Pingback: Achieved 5G rollout obligations in all circles, ready for testing: Reliance Jio tells Govt

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