Powa buys MPayMe in $75m deal
12 June 2014 | 7637 views | 1
Digital commerce outfit Powa Technologies has acquired Hong Kong-based MPayMe in an all share deal it says is worth $75 million.
According to the Telegraph, Powa has paid with three per cent of its stock, which would put a value of $2.7 billion on the combined firm.
Founded by serial-entrepreneur Dan Wagner and with nearly $100 million in funding behind it, London-based Powa has long been promising to revolutionise in-store, mobile and even television commerce.
After several delays, in March the firm finally unveiled its hybrid technology PowaTag 'concept', which chiefly comprises a mobile app which stores users' payment details. The app lets shoppers buy products by snapping QR codes in adverts, with the goods shipped to their homes.
PowaTag will now integrate with MPayMe's flagship mobile payments technology, Znap, helping to expand the service beyond the high street to areas such as food and event tickets, says Powa. In addition, Znap's pbSecurePay app for global billing will be tapped along with mailing leader Pitney Bowes to enter the utility bill payment market.
Says Wagner: "The integration of Znap technology with PowaTag will bring a phenomenal new scope to our provision, as well bringing enhanced functionality to its existing applications. By incorporating digital catalogues, coupons/vouchers, loyalty integration, and access control, and much wider product set, we are enabling true commercial freedom for both merchants and consumers."
PowaTag was unveiled in March, with around 240 firms around the world, including Universal Music and Carrefour, signed up. It has yet to arrive in the UK but big names such as Argos, JD Sports and Laura Ashley are reportedly ready to roll out the technology in the coming months.
Powa has also made a move into the crowded mPOS market, offering an app and dongle system for turning mobile phones into card acceptance devices. However, the division has had a difficult start, ditching its initial swipe-based dongle soon after launch last year.