NTT payments may pursue M&A route into lending
NTT DATA Payment Services is considering entering the lending market, potentially through mergers and acquisitions, to diversify its business model. The company plans to evaluate the scalability of this move over the next few years while continuing to focus on its core payment processing services.
Why it matters
The move reflects a broader trend of payment aggregators seeking to expand into credit and lending to increase revenue streams in a competitive fintech landscape.
NTT DATA Payment Services (NDPS), a Reserve Bank of India-licensed payment aggregator, is eyeing entry into lending business and has kept options on merger and acquisition (M&A) route as it looks to diversify beyond payments after scaling its core payment services business.
Speaking on the sidelines of the launch of Adaptis—a unified service brand for payment and commerce solutions—Take Ueno, CEO and Director of NTT DATA Payment Services, said that the priority in India is now on payment processing through partnerships with licensed entities.
“The first step is to provide a service. If the volume is increasing, we need to invest to buy the licensing, in another way,” said Ueno in an interview to T he Hindu.
“If we like the business and if we do it, we can go through an M&A route,” Rahul Jain, Chief Financial Officer of NTT Data Payment Services India Pvt Ltd.
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