LHV Group, a banking and financial services business, has entered an agreement to acquire payment gateway platform EveryPay.
According to FinTech Finance, the acquisition is a part of strategy by LHV Group to expand into payments services.
The deal will see LHV acquire all the shares in EveryPay for €8m. LHV said the deal is a ‘share exchange transaction’ where EveryPay shareholders in turn will receive new shares issued by LHV Group.
EveryPay provides a fully cloud-based payment gateway platform for banks and acquirers by giving them access to state-of-the-art and continuously improving digital payment solutions with all the relevant tools to manage the acquiring side of ecommerce.
For banks’ merchants, the platform offers a variety of features enabling them to grow and scale by utilising world-class online payment solutions.
According to EveryPay, 70% of Estonian online card transactions are made through EveryPay and it processes over 15 million payments, totalling more than €800m every year. The company wants to move into ecommerce, which is sees as a ‘rapidly growing segment’.
LHV CEO Madis Toomsalu said, “Payment collection business related to e-commerce, such as online card payments and open banking payments, are rapidly increasing in terms of the Estonian retail banking segment.”
Following the acquisition, LHV said that the volume of payments intermediated by EveryPay will climb six times over in five years, with fee and commission income increasing by 18 times in the same period.
Copyright © 2022 FinTech Global