Asia Banks Europe Fintech Paytech

Bango Acquires Japanese Payments Business of NTT DOCOMO

Bango has acquired DOCOMO Digital, the global payments business of the Japanese mobile phone operator NTT DOCOMO.

The acquisition is forecast to bring 60 telco partners onto the Bango platform, such as the likes of Vodafone, while also positioning new merchants on the platform too; namely Discovery+.

In conjuction with the acquisition, Bango has also signed a multi-year agreement with DOCOMO whereby the Japanese company will leverage the Bango plaform to manage payment processing across merchants and app stores.

The addition of more merchants and telcos to Bango’s payments ecosystem is expected to drive more tranactions through the Bango platform, increasing the pool of payment data available to create insights that help Bango customers focus their online marketing, accelerating their revenue growth.

This, in turn, drives more end user spend, fueling the growth of Bango and everyone connected to the platform.

Bango CEO, Paul Larbey
Paul Larbey, CEO, Bango

“Through the Bango platform, telcos can leverage the universal appeal of the world’s biggest online brands and digital merchants can immediately reach new customers,” comments Bango CEO, Paul Larbey. “Both will benefit from data-driven insights, giving consumers greater access to goods and digital services.”

Bango expects to fund the integration of the acquisition, including the migration of customers to the Bango platform, from operating activities and existing cash.

As stated in the company’s official announcement, the gross consideration for the acquisition is estimated to sit at around €4million, funded using existing Bango cash. At completion, DOCOMO Digital had a cash balance of €3.1million.

In addition, a recent contract provides Bango with significant working capital over the next 12 to 18 months, before normaliaing over the life of the contract. The acquisition is expected to be earnings accretive in the first full year (FY2023) and materially earnings accretive once the integration has been fully completed.

Bango strategic partner and shareholder, NHN Corporation, has stated its intention to offer Bango a $10million three-year term loan on commercial terms. If Bango chooses to accept the NHN loan, terms would be finalised at that time. This additional funding would be used to accelerate the restructuring and migration if require.

NTT DOCOMO general manager of wallet service department, Tsutomu Tahara, explains how the acquisition will generate “a big benefit for the digital payments industry,” adding that “Bango is uniquely placed with market leading technology that will benefit our customers in Japan and our merchant partners worldwide.”

“Bango’s role as an independent platform and trusted partner presents a great opportunity to accelerate growth of the global payments ecosystem,” Tahara continues.

Commenting on the acquisition, the RH Kwasi Kwarteng, UK secretary of state for business, energy and industrial strategy, said: “We are backing British businesses to grow on the global stage, particularly in flourishing industries like financial technology, as evidenced by the sterling growth of flagship British companies like Bango.

“This acquisition only further builds on the UK’s reputation as a global centre for fintech, and we will continue to create an environment where innovative businesses can expand at scale, boosting jobs and our economy.”

Author

  • Tyler is a fintech journalist with specific interests in online banking and emerging AI technologies. He began his career writing with a plethora of national and international publications.

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