Share

Naspers PayU unit to buy Turkey’s Iyzico in fintech push

Naspers's PayU agreed to buy Turkish digital payments company Iyzico for $165 million in its biggest fintech acquisition yet.

The deal will expand the Dutch unit’s exposure to Turkey’s e-commerce market, which is growing at more than 10% a year, the company said in a statement on Tuesday. The acquisition must still be approved by regulators and is expected to close in the next few months, it said.

PayU has invested more than $500 million in the industry since 2016 as the firm positions itself to profit from rising internet adoption and e-commerce in emerging economies. Its focus on payments, one of the fastest growing areas in finance, puts the company in position to take a share of an industry that Boston Consulting Group forecasts will produce $1 trillion in new revenue through 2027.

"We are constantly looking for ways to augment the naturally high organic growth in our markets by investing in new technology, as well as market consolidation," Mario Shiliashki, head of payments at PayU, said in a phone interview. "Being a leader in high growth markets will help us to grow faster than others."

PayU is focused on faster growing markets such as Russia, India and African countries where online payments are in their infancy. In addition to the Iyzico acquisition, its largest to date, the company has also invested in the Indian payments sector as well as the Intercontinental Exchange Inc’s cryptocurrency venture, said Shiliashki. It’s also on the lookout for future acquisitions, he said.

Iyzico was founded in 2013 and is used by small and medium-sized companies in Turkey as well as global giants serving customers in the country, including Amazon.com and Nike.

Turkey is an attractive area for payments because only a fraction of the 3 million or so small- and medium-sized business in the country use digital payments and e-commerce infrastructure, said Barbaros Ozbugutu, chief executive officer and co-founder of Iyzico. High internet penetration and a young population suggest there’s large potential for growth, he said.

Technology investor Naspers is based in South Africa and has proposed moving most of its internet businesses to a new listing in Amsterdam, the firm said last month. The firm holds a 31% stake in Chinese internet giant Tencent Holdings Ltd. that’s valued at about $130 billion, according to data compiled by Bloomberg.

* Fin24 is part of 24.com, a division of Media24, which is a subsidiary of Naspers.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.92
+0.1%
Rand - Pound
23.88
+0.1%
Rand - Euro
20.41
+0.1%
Rand - Aus dollar
12.32
+0.1%
Rand - Yen
0.13
+0.1%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders