PayU, a Netherlands-based payment service provider for online merchants, has received the approval of regulatory authorities in Colombia to complete its acquisition of Ding, an electronic deposit and payment platform.
The Superintendency of Industry and Commerce (SIC) and the Financial Superintendence of Colombia (SFC) deliberated in favour of the transaction, PayU said in a statement.
The approval comes months after PayU entered into an acquisition agreement with Credibanco, a Colombian company and the owner of Ding.
Last year, PayU bought Wimbo, a payment technology firm that specializes in processing online payments, for $70 million.
Francisco León, the CEO of PayU Latin America, noted that the new acquisition of Ding will help the company to respond to the permanent challenges arising from the market.
“PayU has accompanied the evolution of online payments in Colombia and the company now seeks to expand its scope of services to boost the financial inclusion of small and medium-sized companies in the country,” León said.
Also speaking, Mario Shiliashki, the CEO of the PayU Global Payments Division, noted that Colombia is the company's most important hub in Latin America.
“This is undoubtedly one of the most relevant moves in the Colombian financial market, reflecting PayU's desire to build substantial online businesses for merchants and consumers who offer useful products and services to millions of people in their everyday life,” Shiliashki explained.
Also contributing, Juan Vargas, the Country Manager of PayU in Colombia, explained that PayU’s strategic vision is to leverage small and medium-sized businesses in the country.
The acquisition, therefore, “will be a cornerstone in this important purpose,” Vargas said.
“PayU is a brand that is present in the hearts of Colombians, not only because of its credibility, solidity and experience, but also because it was born from a venture in the country,” the Country Manager added.
Online Payment in Colombia
According to PayU, Colombia, over the past few years, has seen a unique transformation of its financial systems.
This transformation has made the country's market more dynamic, especially with the injection of new players into the industry.
PayU believes that its acquisition will boost innovation and competition in Colombia’s digital payments industry while also driving inclusion.
“This operation [acquisition] is fully aligned with the general vision of the fintech ecosystem in Colombia, and it is a key objective for PayU in all communities that it partakes in,” the company explained.
