US payments giant Mastercard invests in Indian firm Pine Labs

Topics Mastercard

MasterCard credit cards are seen in this illustrative photograph. Photo: Reuters
Pine Labs, a digital retail payments company, on Friday announced an undisclosed investment by US-based payments technology company Mastercard. The investment is part of a partnership to continue the rapid growth of convenient electronic payment options for consumers across the region. The collaboration will deliver an extensive range of card and real-time payments-based installment financing at checkout – in-store and online.

Together, the companies will offer a suite of value-added services, including Pine Labs’ end-to-end stored value solutions which will replace the paper ones now widely used by companies, retailers and people in South Asia and many other markets. Terms of the deal were not disclosed.

“This relationship is a great validation of the top-quality products that Pine Labs delivers to merchants,” said Lokvir Kapoor, founder and chairman of Pine Labs. “Together, we have a unique opportunity to use Mastercard’s global presence and technology infrastructure to enhance our growth and enable us to meet the growing needs of customers in India and beyond.”

From its beginnings as an offline retail payment provider a decade ago, Pine Labs has evolved into offering payment acceptance technology, stored value products, in-store consumer credit and other merchant solutions in India, Southeast Asia and the Middle East. Today, it processes payments of $30 billion per year and serves some 140,000 merchants across about 450,000 network points.

“Smart devices are transforming how people shop. With this partnership, we’re continuing to build innovative solutions and provide people with new ways to pay right at their fingertips,” said Ari Sarker, co-president for Asia Pacific at Mastercard. “By joining forces with Pine Labs, we are reinforcing our strategy to deliver choice to consumers and to be the partner of choice for our customers in South Asia and around the world.”

The market opportunity in India for installment-based payments on consumer goods will hit $16.9 billion in 2021 and is expected to jump to $52.5 billion in 2025, according to a study published in May 2019 by PwC and the Associated Chambers of Commerce of India.



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