Socash is an alternative payments network platform based in Singapore.
The acquisition is expected to be completed in Q3 2022.
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The acquisition, which is expected to be completed in the third quarter of 2022, is subject to customary regulatory closing conditions. The acquisition will combine the local payments acceptance technology of Socash and Niums global platform to make digital commerce convenient in emerging markets.
Despite the rising interest in digital payment methods, Cash is still the most preferred payment method across several emerging markets in Latin America and Asia. The acquisition allows Nium to accept cash for transactions online.
“The Socash team has built an impressive platform that bridges payments in the digital space with payouts in the physical world,” said Pratik Gandhi, Co-founder and COO of Nium. “When compared to current in-app payment costs, we estimate Socash saves up to 30 percent in commissions paid. With this acquisition, Nium can offer a lower-cost payment processing alternative for digital merchants, spanning local payment acceptance through to global payouts.”
Local Payments
While developed economies are mostly using digital payment methods for daily transactions, including commerce, emerging markets are still using cash at scale. Nium noted that it is important for companies to introduce solutions that facilitate local payments in specific regions.
“Cash is a preferred method of payment in the Asia Pacific and Latin American markets, and the acquisition of Socash allows Nium to accept cash for transactions online – bridging the physical and digital worlds. Together, Nium and Socash become the full-stack, platform-of-choice for global merchants with capabilities for local acceptance, multicurrency accounts, foreign exchange, and global payouts,” Nium highlighted.
According to World Bank, more than 1.7 billion unbanked people across the world are still using cash for payments.
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