The acquisition of Ding will allow PayU to strengthen it’s presence in Colombia as it begins to directly participate in the financial services market.
Bogota, March 30, 2022 – PayU, part of the global internet giant Prosus and one of the world’s largest technology investors, announced today that it has reached an agreement with CredibanCo to acquire Tecnipagos S.A., which operates under the Ding brand, a company specialized in electronic deposits and payments.
During recent years, Colombia has stood out for the transformation of its financial system, allowing new players to enter and dynamize the market. With it’s latest acquisition, PayU, who is present in over 50 markets globally and has a broad trajectoy in the Colombian online payments market, strengthens its portfolio of solutions to meet the changing payment and financial services needs of digital consumers, merchants and entrepreneurs, offering cutting-edge technology even in unbanked sectors of society.
The closing of the transaction is subject to the respective approval of the relevant Colombian financial supervision, among other customary conditions.
According to spokespersons for both companies, this transaction reflects the growth of on-line commerce and the commitment of PayU and CredibanCo to the Colombian economic reactivation, permanently supporting MSMEs and SMEs.
To Francisco León, PayU’s CEO for Latin America, “PayU is a company that has accompanied the evolution of online payments in Colombia and now seeks to extend it’s service offering to increase the financial inclusion of small and medium-sized businesses in the country. This acquisition is part of our growth plan, aiming to respond to the permanent challenges that a dynamic market with enormous possibilities demands from us”.
According to Mario Shiliashki, Global CEO of PayU’s payments division, “Our announcement today reflects PayU’s desire to build valuable internet businesses for merchants and consumers that provide useful products and services to millions of people in their daily lives. Payments and financial technology is a core segment for PayU, and Colombia is our most important hub in Latin America.”
“At CredibanCo, as a large payments ecosystem that is constantly evolving to respond not only to the financial needs of colombians and merchants but also to the challenges brought by a changing and competitive environment, as well as a new regulation (Decree 2555 of 2010, modified by Decree 1692 of 2020) we came to this decision. I am sure that PayU has all the potential to make the most of this acquisition and to make Ding grow in both colombian and international markets” said Gustavo Leaño Concha, president of CredibanCo.
Additionally, CredibanCo was financially adviced by the investment bank GBS Finance, who conducted an exhaustive research to determine the most suitable actor that could acquire it’s 100% digital SEDPE, becoming the ally of MSMEs, entrepreneurs and colombians in general; resulting in the choice of PayU.
Finally, this transaction will stimulate both innovation and competition within the digital payments industry in Colombia and will not only help strengthen the country’s digital economy, but also provide financial services to those businesses and individuals that may have been historically excluded. This acquisition is fully aligned with the overall vision of the FinTech ecosystem in Colombia and is a key objective for PayU in all the communities it is a part of.
About Prosus
Prosus is a global consumer Internet group and one of the world’s largest technology investors. Operating and investing globally in markets with long-term growth potential, Prosus builds leading consumer Internet businesses that empowers people and enriches communities.
The group focuses on building meaningful businesses in the online classifieds, food delivery, payments, fintech, and education technology sectors in markets including India and Brazil. Through its companies, Prosus invests in areas including healthcare, logistics, blockchain and social commerce. Prosus actively seeks out new opportunities to partner with exceptional entrepreneurs who are using technology to improve people’s everyday lives. Every day, billions of customers use the products and services of companies that Prosus has invested in, acquired or built.
For more information, visit www.prosus.com.
About DING
The incorporation of Tecnipagos S.A., which operates under the Ding brand, was authorized by Resolution 1029 of August 3, 2017 issued by the Financial Superintendency of Colombia. Subsequently, through Resolution 1174 of September 3, 2019, after carrying out the entire implementation and certification process, the Financial Superintendency granted operating approval, with the purpose of transforming the lives of businesses.
Ding is a SEDPE that seeks to promote financial inclusion and reduce the use of cash, from the perspective of accepting means of payment other than cash, to businesses excluded from the financial system, either because they exclude themselves by not being considered as establishments at the base of the pyramid, being unattractive to traditional banking, and to individuals who have not had access to financial products.
About CredibanCo
CredibanCo is a Colombian company supervised by the Superintendencia Financiera with more than 50 years of experience in the administration and development of low value payment systems. It promotes electronic payments in the country through a business structure that replaces the use of cash, favoring formalization, financial inclusion and increased sales through agile, innovative and secure means of payment.
CredibanCo has managed to bring Colombians closer to the world of business and online transactions, consolidating itself as the safest payment network in the country, obtaining in 2006 the PCI DSS certification and in 2018 the updated rectification PCI DSS 3.2.1 and PCI Security PIN Version 2.0 with validity to 2021, this distinction is granted to organizations that comply with rigorous security standards aimed at protecting data and avoiding fraud.
