PayU, a Naspers owned online payment firm, announced on Monday it has acquired an Israel-based payments technology platform ZOOZ.
The deal supports PayU’s ongoing expansion into high growth markets and targets the $994 billion* opportunity in cross border payments, the company said.
The ZOOZ acquisition brings PayU’s total sum of investments and acquisitions in global fintech to more than $350 million since it began a series of strategic moves across the globe in 2016 to open access to financial services.
The ZOOZ and PayU teams will work together to create the leading, global standard payments infrastructure of the future.
The deal follows a successful partnership, which, for the first time, gave PayU merchants such as Gett and Kiwi.com access to 2.3 billion new customers across high growth markets via the ZOOZ-designed PayU Hub platform. It leverages PayU’s payments infrastructure and ZOOZ’s state-of-the-art technology to open up access to new markets for merchants with global aspirations and sets a new standard for payments across borders.
As part of the deal, ZOOZ’s co-founder and CEO Oren Levy and CTO Ronen Morecki will become part of PayU’s Global Leadership team, focusing on tech and business development. ZOOZ’s 70-strong team of experienced technical and payments experts will also become part of the PayU team, boosting the business’ technical capabilities.
Laurent le Moal, CEO of PayU, said: “PayU is one of the most active investors in the fintech space and we are always looking for opportunities to innovate and support our merchant clients to grow. Today’s announcement is a great illustration of this philosophy in action and we are pleased to be welcoming the ZOOZ team further into the PayU fold. By working together to create the first ‘Payment OS’ platform we will advance PayU’s mission to help build a world without financial borders”.
With the cross-border market expected to reach $994 billion in 2020, nearly two-thirds of cross-border business will come from high growth markets like Asia and Latin America, according to a report by Accenture. Alternative payment methods still represent as much as two-thirds of all payments in these markets.
ZOOZ was founded in 2010 by Oren Levy and Ronen Morecki. It has become one of the most well-known payments technology players in Israel.
PayU is part of Naspers, a global Internet and entertainment group and one of the largest technology investors in the world. Following completion of the deal, ZOOZ will be wholly owned by Naspers, strengthening its Payments division and supporting its strategy to grow its financial services footprint across emerging markets with long-term growth potential.