Nium Signs Deal to Buy Alternative Payments Platform Socash

Global payments firm Nium signed an acquisition deal for alternative payments network platform Socash, according to a Tuesday (April 26) press release. Terms of the agreement were not disclosed.

The acquisition of Socash gives Nium the opportunity to accept cash for digital transactions and enable the payment acceptance of multiple types of currencies, particularly in emerging markets. In the Asia Pacific and Latin American regions, cash is still the driving payment type.

See also: Nium Boosts Crypto Services for Businesses with Crypto Accept

As a combined entity, Nium and Socash are aiming to offer global merchants a full-stack platform of choice.

Pratik Gandhi, co-founder and COO of Nium, estimates that with Socash, users will save 30% in commissions when compared to the current cost of in-app payments.

“The Socash team has built an impressive platform that bridges payments in the digital space with payouts in the physical world. With this acquisition, Nium can offer a lower-cost payment processing alternative for digital merchants, spanning local payment acceptance through to global payouts,” Gandhi said.

The acquisition is expected to close in Q3 2022, subject to the usual regulations and closing conditions, per the release.

Read more: B2B Payments Solutions — the Catalyst to Economic Recovery

Launched in 2014 and headquartered in Singapore, Nium operates across Australia, Hong Kong, Malaysia, India, Canada, Europe and the U.S. It enables local payments across borders, reaching out to people across the globe.

Also based in Singapore, Socash was founded in 2016 and is a digital platform at the intersection of cash and online payments. Its platform enables cash circulation without the need for ATMs. It operates in Singapore, Indonesia and Malaysia.

Alternative payment methods (APMs) — eWallets, real-time bank transfers and electronic cash — have grown because of the ease of managing transactions online. There are an estimated 1.7 billion people who are unbanked, according to the World Bank, making cash transactions still a popular payment method.