Online payments company PayU announced on Friday that it has acquired Wibmo—a California-based technology and service provider for the financial services industry—for $70 million.

The acquisition will help PayU bolster its digital payment services. Besides its expertise in risk-based authentication and payment security services, Wibmo provides solutions such as mobile payments, fraud and risk management, prepaid solutions.

According to the terms of the agreement, PayU and Wibmo will run separate operations though the teams at both companies will join hands to offer unique business solutions to their customers.

“India is a priority market for PayU and we are committed to making digital payments frictionless through our innovative products and services, supporting the government’s vision of a digital India,” said Aakash Moondhra, CFO, PayU Global. “Through the acquisition of Wibmo, our endeavour is to positively impact and add value to the entire ecosystem including banks, consumers and merchants, with the combined service offerings of PayU and Wibmo.”

With this investment, PayU’s fintech investment total crosses the $500 million mark, putting the company within the top five leading global fintech investors. It will also help PayU expand its reach in the payments value chain in India.

Wibmo, which services banks in over 20 countries in payment authentication and risk-based decision making, will benefit from PayU’s strong merchant network. “PayU has evolved within the complex payments landscape to become India’s biggest online payments processor, serving more than 350,000 merchants,” Govind Setlur, founder and CEO, Wibmo, said. Setlur will be on PayU’s leadership team as PayU India CEO.

“We are excited to embark on this next chapter of Wibmo’s growth with PayU. By combining our track record and expertise in payment security and mobile payments with PayU’s strong merchant network and heritage in payments, the combined entity will be focussed on delivering more secure and seamless payments experience to its customers,” he adds.

Wibmo

PayU buys Wibmo for $70 million