In the dynamic world of fintech, strategic moves can be game-changing. NomuPay, a rising star in the payments sector, has taken a significant leap forward by acquiring Total Processing, a Manchester-based startup known for its advanced payment processing solutions. This acquisition marks a crucial step in NomuPay’s journey towards expanding its services and customer base.
NomuPay, emerging from the remnants of the once-prominent fintech company Wirecard, has been on a path of steady growth and innovation. The company has committed approximately $35 million to bring Total Processing into its fold, a move that underscores its commitment to enhancing its service offerings and customer experience. This deal boosts NomuPay’s valuation to an impressive $135 million, a testament to its strategic vision and operational excellence.
Total Processing, since its inception in 2015, has carved out a niche for itself by developing tailored solutions for recurring payments, risk management, PCI compliance, and seamless payment integrations. Although the company hasn’t disclosed any external funding details, its acquisition by NomuPay marks a significant milestone in its journey.
Earlier this year, Dublin-based NomuPay announced a substantial funding round of $53.6 million. Despite varying valuations, with PitchBook’s September 2022 estimate placing it just under $172 million, NomuPay’s CEO, Peter Burridge, maintains that the company’s valuation has been on a consistent upward trajectory. This is particularly noteworthy given the recent trend of down-rounds and valuation adjustments in the tech sector.
NomuPay’s core focus has been on acquiring licenses and expanding payment management capabilities across Southeast Asia, Europe, Turkey, and, looking further ahead, the Middle East. The acquisition of Total Processing is a strategic move to enhance NomuPay’s tooling and customer service offerings. According to Burridge, this acquisition is like adding a “spare tire” to their vehicle, broadening the range of solutions and support available to their customers.
In stark contrast to the often impersonal customer service in the fintech industry, Total Processing’s technology stack and consultative approach to customer interaction set it apart. It offers a more personal touch, something that is missing from many of its competitors.
Looking ahead, NomuPay plans to scale Total Processing’s operations, beginning with expansions into Hong Kong and Southeast Asia. Total Processing’s existing presence in the UK and United Arab Emirates provides a strong foundation for this growth. However, specific details about the customer base and revenues remain undisclosed.
In the current economic climate, mergers and acquisitions are becoming increasingly viable for startups looking to extend their operational runway or expand their business scope. For fintech, a sector where consolidation has been a long-standing trend, this approach makes perfect sense. Digital payment services often operate on thin margins due to the multiple stakeholders involved. By merging resources and expanding service offerings, companies like NomuPay can achieve better economies of scale and strengthen their market position.
This acquisition is not just about adding a new company under the NomuPay umbrella; it’s about redefining the future of payment solutions and customer service in fintech. As NomuPay integrates Total Processing’s capabilities, it sets the stage for a more connected, efficient, and customer-centric approach to digital payments. For those keeping an eye on the fintech landscape, this move signals NomuPay’s ambition to become a major player in the global payment solutions arena.
