Mogo, which helps customers get in better control of their financial health, has agreed to buy digital payment solution provider Carta Worldwide in a bid to enter the B2B payments landscape, according to a press release.
Carta's modern issuing platform propels several FinTech companies, including powering over 100 card programs and providing processing tech to companies like TransferWise, Sodexo and Payfare, the release stated.
By acquiring the company, Mogo will be able to integrate Carta's technology with its own MogoSpend product, aiming at the broader digital wallet market and looking at rolling out a new peer-to-peer (P2P) card next year, according to the release.
The release stated Mogo will now have more of a revenue scale, better diversification and an entrance into the B2B FinTech market. Now, both companies will have a combined reach of over 40 countries worldwide.
Carta, meanwhile, will now have access to cross-sell Mogo's front-end mobile platform for its own clients, the release stated.
Mogo Founder and CEO David Feller said the addition of Carta would help to boost the company's abilities.
“By using Carta’s payment processing engine, we expect to enhance Mogo’s digital wallet capabilities, which includes the development of our upcoming peer-to-peer payment solution, and — when combined with our digital front-end capabilities — we see great opportunity to power the next generation of platforms globally," he said, according to the release.
Peter Kaju, CEO of Carta, said the company sees "tremendous opportunity to accelerate the growth of our respective businesses by combining resources and capabilities," according to the release.
In separate news, expert panelists told PYMNTS that the accounts payable (AP) automation market is projected to be worth $3.1 billion by 2024. Collaboration between FinTechs and financial institutions (FIs) could be vital because of the potential for each side to use the strengths of the other. FinTechs can access FIs' competent lending, working capital and payment rails accessibility, and FIs can leverage FinTechs' more modern technology and mobile apps.