India-based fintech RazorPay has acquired payment solutions company Ezetap in a cash-and-equity deal to tap offline payments. According to sources cited by The Economic Times, Razorpay has paid USD 150 million for the deal, of which USD 100 million will be cash payouts to Ezetap’s shareholders.

After the acquisition, Razorpay may invest a further USD 50 million in the offline payments provider to further grow the offline business, one of the people said on condition of anonymity. The acquisition will help Razorpay offer an omnichannel payment solution, linking its online payment offerings with offline. This marks Razorpay’s sixth acquisition and one of the largest for the eight-year-old company, which started as a payment gateway provider and later diversified into newer financial service offerings including neobanking, payroll management (RazorpayX), and credit disbursements (Razorpay Capital).

The focus on omnichannel payments The fintech’s officials stated that they believe that payment businesses will be a lot more omnichannel and they have seen that with the Unified Payments Interface (UPI). So, after being on the online side all these years, offline was a big component for them. The consolidation will allow for all payment flows (offline and online) to be under one technology stack, helping them deliver an experience.

With access to Ezetap’s offline stack Razorpay will have a better understanding of transactions clocked by offline merchants, leading it to extend higher credit and better financial services products while managing end-to-end money flows. The acquisition will also help Razorpay better its card tokenisation stack, ‘Razorpay TokenHQ’, which it launched in October 2021 in association with card network majors Mastercard, Visa, and RuPay. .