The collaboration will deliver a range of card and real-time payments both online and offline. Together, the companies will offer value-added services including Pine Labs’ end-to-end stored value solutions which will replace the paper ones now used by companies, retailers and people in South Asia and many other markets. Terms of the deal were not disclosed. ET had first reported in January 22 edition that MasterCard was in talks to invest in Pine Labs.
Pine Labs offers payment acceptance technology, stored value products, in-store consumer credit and other merchant solutions in India, Southeast Asia and the Middle East. Presently, it processes payments of $30 billion per year and serves some 140,000 merchants across about 450,000 network points. Pine Labs works with a range of financial institutions and partners who are responsible for the design and delivery of the installment financing service to merchants and consumers.
In a statement, founder and chairman of Pine Labs, Lokvir Kapoor, said, “Together, we have an opportunity to use Mastercard’s global presence and technology infrastructure to enhance our growth and enable us to meet the growing needs of customers in India and beyond.”
A study published in May 2019 by PwC and the Associated Chambers of Commerce of India showed that the market opportunity in India for installment-based payments on consumer goods will hit $16.9 billion in 2021 and is expected to jump to $52.5 billion in 2025.1
“Smart devices are transforming how people shop. With this partnership, we’re continuing to build innovative solutions and provide people with new ways to pay right at their fingertips,” said Ari Sarker, co-president for Asia Pacific at Mastercard, in a statement.