Singapore- based Nium has inked a definitive agreement to acquire fraud
hit Wirecard’s foreign exchange unit in India, as part of the latter’s bankruptcy process.
The accession will mark the Temasek HoldingsLtd.- backed fintech startup’s entry into the Indian market, where it’ll directly engage in a variety of payment services exercise similar as currency conversion,
money transfer, and prepaid card allocation, Prajit Nanu, the chief executive officer of Nium, told Economic Times in a video interview.
Wirecard Forex India is a licensed authorized dealer under the Reserve Bank of India’s regulations and a remittances service provider in the country.
“There are many use cases to this piece, our primary objective is the issuance of branded travel cards through Wirecard’s existing partnerships in India,” said Nanu. “We’ll use this foundation to build our business in India. We’ll leverage our global brand, our geographical reach and use it to disrupt this market in India.”
An authorised dealership (AD2) licence will be obtained post the purchase of Wirecard’s India unit.
The fintech startup will also apply for a prepaid payments instrument (PPI) licence with Rserve Bank of India(RBI) to issue its own payment instruments as well such as branded travel cards.
As per the sources from Nium’s, it has issued about 30 million physical and virtual cards and is certified in 11 administrations which includes direct card issuing capabilities in 24 countries and 40 currencies.