At that point, online payments should contribute 20% of revenue, said Pine Labs’ chief executive officer. Amrish Rau Revealing the company’s goals for the first time since venturing into online payments, he said.
$5 billion in value and including investors master card and Singapore’s Temasek, Pine Labs, have provided point-of-sale machines to offline merchants for card payments for years.
Last year, it launched the Plurals service to process online transactions in the country’s fast-growing payments market.
Rau said Plurals is currently processing $380 million in monthly transactions, but it will grow 10 to 15 times over the next two years. He also said that the monthly transaction value would be $4 billion to $5 billion.
In the first 10 months, Plurals acquired the online transaction processing business of new customers, including: Samsung India And Apple’s Indian resellers, Rau added.
He said, “Offline payment (business) is much more difficult than online and we have already sorted it out. Merchants expect high transaction success rate from online payment. We would like to give any competitor a run for their money. can give,” he said.
Digital transactions make up 40% of all transactions in India’s fast-growing payments space, according to
counseling group. An effort by the government to make people pay digitally is helping increase digital transactions.
According to central bank data, Indians made $22.6 billion in card payments in May 2022, almost double what it was a year ago.
Pine competes directly with other payment gateways such as Sequoia-backed razorpayWhich is valued at $7 billion and Prosus-owned PayU.
For Pine Labs, competition will be tough, as rivals offer similar services and are already well established.
“Everyone provides the same service, so discrimination is very difficult in the long run,” said an executive at a rival payments firm, who declined to be named because of business sensitivity.
According to a source of direct knowledge of the industry, Pine Labs is trying to woo customers by offering 10 to 12 basis points lower processing fee than some rivals.
The source said the company is currently raking in about $200 million in annual revenue.
Rao did not comment on its fee structure or revenue.
After raising more than $1 billion from investors over the past 15 months, the company will continue to evaluate stock market listings for years to come.
“Markets are still trying to find their feet in terms of high interest (rates and) inflation. So, on the question of IPOs, we can probably evaluate later,” he said.