On 11th June 2019 PayU announced its acquisition of Iyzico, a digital payment provider and one of the most efficient fintech start-ups in Turkey for 165 million dollars. This attainment which contributes to the $500 million PayU deployed across M&A and fintech investments, is an additional efficient step in the company’s aim to develop in the field of leading payments provider in the competitive marketplace and develop as the world’s leading fintech investor.
PayU makes use of its payments heritage and proficiency to deliver financial services in developing markets. The markets in which PayU undertakes its operations represent a budding client base of almost 2.3 billion people and a vast growth potential for dealers.
Iyzico delivers a secure payment key to online companies of diverse sizes functioning in various industries. Its technology empowers online businesses and enterprises to maximize conversion rates and admit payments in their local currency.
This acquisition will enable PayU to unite its place as a leader in the payments department and accelerate scale and efficiency in Turkey, where there is a vast growth opportunity for online payments and e-commerce. Nevertheless, e-commerce in Turkey has been rising firmly of over 10% each year, it is still in its beginning with a share in the total sale of less than 5%. The SMB chance alone is important with the potential for 10x growth over the next few years. Currently, only 5% of SMBs in Turkey have an online sale existence but, also due to the efforts of the government programs favoring digitalization, the percentage is anticipated to grow, representing a great opportunity for enablers such as payment processors and e-commerce marketplaces.
“PayU has attained iyzico in a landmark step to deliver on our assignment of local consolidation and growing to be the number one payments provider in every high growth market we undertake operations in. We are pleased to welcome originators Barbaros, Tahsin and the extensive iyzico team to PayU as we integrate this high growth business in a key step on our trip to developing to become the world’s number one fintech investor.” This was mentioned by Laurent le Moal, CEO of PayU.
In addition, Barbaros Özbuğutu, Co-Founder and CEO of iyzico, said, “In 2013 we created iyzico with the aim to empower SMBs all over Turkey to admit online payments, an endeavour that turned into a squad of 150 and billion Turkish liras of transaction volume. And today we link forces with PayU, a chief global fintech operator and investor with a durable heritage and track record in payments in high growth markets. We are optimistic about this linking of the PayU team and functioning alongside highly accomplished experts in payments, firming the company’s leading position in Turkey and beyond in the competitive marketplace”.
The contract has been made against a set of a positive viewpoint for the Turkish market in terms of online payments, e-commerce, a sizeable SMB opportunity, and bank-led digital payments. The transaction is subject to regulatory approval, the deal is anticipated to close in the upcoming few months.