Laurent le Moal, Chief Executive Officer, PayU

Payment technology provider for online merchants, PayU on the 11th of June announced the acquisition of Turkey-based iyzico – a digital payment services provider for $165 million. The acquisition is a move to further PayU’s mission to become a leading payment provider in a high growth market.

Laurent le Moal, CEO of PayU, commented: “PayU has acquired iyzico in a landmark move to deliver on our mission of local consolidation and becoming the number one payments provider in every high growth market we operate in. We are delighted to welcome founders Barbaros, Tahsin and the wider iyzico team to PayU as we integrate this high growth business in a key step on our journey to becoming the world’s number one fintech investor.”

Founded in 2013 in Istanbul, iyzico provides secure payments solutions to online companies of different sizes operating in different industries. Its technology enables online businesses and enterprises to maximize conversion rates and accept payments in their local currency.

The acquisition is expected to allow PayU to penetrate the Turkish market, which has seen tremendous growth in the payments market in recent times and is expected to continue the same. E-commerce has been growing stably of over 10% each year, it is still in its infancy with a share in the total sale of less than 5%. The SMB opportunity alone is significant with the potential for 10x expansion over the next few years. Today only 5% of SMBs in Turkey have an online sale presence but, also thanks to government programs favouring digitalization, the percentage is expected to increase, representing a large opportunity for enablers such as e-commerce marketplaces and payment processors.

The acquisition will also PayU to expand into the Eastern European market and Africa.

Barbaros Özbuğutu, Co-Founder and CEO of iyzico, added: “In 2013 we founded iyzico with the goal to enable SMBs all over Turkey to accept online payments, an endeavour that turned into a team of 150 and billion Turkish liras of transaction volume. We look forward to joining the PayU team and working alongside highly skilled experts in payments, strengthening the company’s leading position in Turkey and beyond”

by Megha Bhattacharya
Market Analyst at IBS Intelligence