Three Major Banks Currently Under Contract Prepare to Launch Application in 2021
Kvanto Payment Services A/S (“Kvanto”) is pleased to announce the signing of an Agreement (“The Agreement”) with Mobileware Technology Pvt. Ltd. (“MWT”). Under the terms of the agreement, Kvanto will own 51% of MWT in India to pursue the implementation of Kvanto’s payment platform combined with MWT’s existing payment processing technology and customer base. MWT will represent and move Kvanto forward through the exponentially growing digital payment processing market in India.
Mobileware has implemented digital banking products in leading banks in India, including Yes Bank and Kotak Mahindra Bank. Building on Kvanto’s success with its proven state-of-the-art platform and coverage that reaches over 400 banks worldwide, and Mobileware’s long-standing business relationships in India, this venture’s combined technology is expected to become operational throughout multiple banks in India.
The operational side of the business relationship has been in active development for over 2 years and is currently focused on an extensive ongoing testing plan where the platform has been successfully demonstrated and is preparing to go live.
Revenue from these initial contracts should commence in the 2nd quarter of 2021. By 2022, the total amount of annual transactions in this cooperation is expected to yield approximately USD $14 million directly to Kvanto, as their share of the annual transaction fees attributed to the Kvanto gateway. In addition, Kvanto will benefit from the 51% consolidation of MWT, which are expected to add a further $36 million to the consolidated revenue line in 2023.
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“In order to support the requirements of doing this business, as well as providing the Kvanto payment platform for other banks in India, we selected MWT as the right partner to work with,” said Jesper Skorstengaard, CEO of Kvanto. “MWT brings extensive experience and credibility to this marketplace which should accelerate our market access,” he added.
“We look forward to representing Kvanto,” said CEO of Mobileware Technologies, Satyajit Kanekar. “We have great trust in the ability of the Kvanto platform and the deep knowledge into payments that the Kvanto team and relationship brings. We’re very excited and convinced that we have found the right partnership for fast, escalating businesses here in India.” Kvanto and Mobileware Techhnologies’ synergy presents the potential to become a major player in the digital payment space, he added.
The acquisition and valuation of MWT is subject to further due diligence and is expected to become effective no later than the listing date of Kvanto’s parent company, Kvanto Payment Services Ltd, on a recognized stock exchange in Canada, details which will be disclosed when finalized at a later date.
