Fresh off its recent purchase of CorFire and a separate investment in Host Card Emulation creator SimplyTapp, Mozido is at it again and today announced it acquired a payments technology company named PayEase.
This acquisition might turn out to be the most significant for Mozido as the purchase gives it an entryway into the coveted Chinese market.
PayEase is one of 22 Chinese-licensed payment processing companies and provides payment services nationwide in areas such as in-app purchasing and mobile point of sale terminals. The company is also connected to over 98 percent of China’s banks and over 64 domestic credit and cards and four international brands in American Express, JCB, MasterCard and Visa. Some of PayEase’s primary customers include Amazon and Apple.
“We’ve already been deploying [our services] around the world and now we’ve made a major move into China with a company that is already established and has marquee customers,” Michael Liberty, founder and chairman of global strategic initiatives, told Mobile Payments Today in an interview before the official announcement.
“We think that PayEase was a great strategic win for us,” he added. “We bring our cloud-based service to them and it brings a whole new level of services to be sold in China and a consumer-engagement platform that we think is going to be pretty revolutionary.”
Financial terms of the acquisition were not made public.
Mozido offers three core services to banks, merchants and telcos: Mobile-payment products, mobile loyalty, and mobile engagement. The Austin, Texas-based company already provided their services to entities in Mexico, Central America, the Caribbean, the Middle East and Southeast Asia. China was the missing trophy in the case and Liberty said the only way Mozido could’ve have entered that market was through the acquisition of a company that already understood what he pegged as a “massive ecosystem.”
“We’ve known the folks at PayEase for a decade,” he said. “We stayed friends and said, hey maybe one day we’ll be one. We finally decided the timing was right.”
Indeed, the time is right for companies such as Mozido to find their way into China and a burgeoning mobile payments market.
Chip maker NXP recently said it will now focus more on China than any other region because it believes growth there will be “very significant.” Rumors of an Apple/Alipay partnership will ignite such growth but Alibaba (which owns Alipay) has more than shown its worth of being a mobile-payments leader. Alibaba sales reached more than $9 billion on Singles Day and consumers conducted almost half of those transactions on mobile devices.
Liberty hopes Mozido can come close to duplicating Alipay’s success in China.
“We’re excited that our platform stacks up right alongside Alipay,” he said. “We’re trying to do something we believe is equally or more pervasive because we already [have business in other countries]. Alipay started in China and did a magnificent job and now they are deploying around the world.”