Now Reading: NTT DATA Payments may pursue M&A route into lending
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NTT DATA Payments may pursue M&A route into lending
NTT DATA Payment Services (NDPS), an RBI-licensed payment aggregator, is exploring entry into the lending business and may use the merger and acquisition route, The Hindu reports. Speaking at the launch of…
The Story in Brief
NTT DATA Payment Services (NDPS), an RBI-licensed payment aggregator, is exploring entry into the lending business and may use the merger and acquisition route, The Hindu reports. Speaking at the launch of its unified brand Adaptis in Mumbai, CEO Takeo Ueno said the company will first focus on payment processing through partnerships.
Over the next two to three years, NDPS will evaluate whether to acquire a lending licence or grow inorganically. CFO Rahul Jain said the M&A option is open if the business model scales successfully. NDPS expects net earnings to grow 20% annually in a competitive market.
The Indian Opinion
The company's wait-and-see approach is sensible given the regulatory maze around lending licences. But the 20% annual growth target looks ambitious in a market where Razorpay and PayU already squeeze margins. The real test will be whether NDPS can scale its core payments business enough to justify an acquisition within two years, or whether the promise of M&A remains just that, a promise.
Source: thehindu.com
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