The loyalty management platform PoshVine has been purchased by Razorpay, a provider of digital payments and financial services, for an unknown fee.
This is the sixth purchase made by Razorpay altogether and its fourth this year.
The acquisition follows its $200 million purchase of offline point-of-sale (PoS) company Ezetap in August, which is anticipated to catapult it into the loyalty and rewards management industry.
The 36-person PoshVine team will work with Razorpay to run its loyalty and rewards vertical as part of the agreement.
Through additional merchant incentives, Razorpay is anticipated to assist banks in boosting client retention for their credit services as a result of the purchase.
“We continue to see a bigger opportunity to work with banks and help them upgrade their financial infrastructure,” Shashank Kumar, managing director and co-founder of Razorpay, told as per reports. “While banks can acquire a customer for their credit card offering, they are unsure if it will be used. That’s where we see the rewards and loyalty play coming in, where it is critical to provide the right offer in the right context.”
With the purchase, retailers should be able to streamline the process of presenting discount offers to banks, deliver timely and personalized offers to customers, and accept payments from customers using their bank’s credit cards at checkout.
By integrating PoshVine’s loyalty and reward programs on its point-of-sale network, Razorpay hopes to improve the offline shopping experience for customers.
PoshVine, a 2011 startup, provides banks, FinTech companies, and payment networks with offers and incentive management systems to boost consumer engagement. Currently, the platform gathers offers from more than 5,000 retailers and provides banks with a single solution that is subsequently made available to credit card customers.
The self-funded firm collaborates with over 20 banks and card networks throughout India and Southeast Asia, including SBI Card, HDFC Bank, Visa, DBS, Kotak Mahindra Bank, AU Small Finance Bank, and American Express (Amex).
Following its international entry in February with the acquisition of Malaysian fintech company Curlec, Razorpay’s client base in Southeast Asia is anticipated to strengthen its foothold in the area.
PoshVine will have access to a vast network of more than 8 million merchants through Razorpay.
“With our offline and online operations, there’s a sizable portfolio of spends that we are managing. So, we are now looking to offer a bespoke platform for businesses where they can create offers, loyalty and rewards,” Kumar added.
