On 27th May 2014, online gaming company bwin.party digital entertainment announced that its Kalixa payment group has acquired PXP solutions – a private company with a 27yr old track record in the card payment processing sector. The company did not disclose the financial terms of the acquisition, as yet.
“Kalixa is on-course to become a significant player in the digital payments arena. Today’s acquisition provides excellent cross-selling opportunities for both Kalixa and PXP and has created a payments business with a balanced portfolio of customers, sectors, and geographies across Europe starting to enter the US and APAC,” stated the CEO of bwin.party, Norbert Teufelberger, in a press release. “We are working on a series of other strategic initiatives that we expect will further enhance the future prospects for Kalixa and its value to the Group,” he added.
- This acquisition of PXP represents a significant step in the acceleration of the Group’s three-year plan to grow Kalixa, says the company.
- Integrating PXP will significantly grow the size of Kalixa’s payment processing volume.
- It is expected to generate considerable revenue synergies in the areas of credit and debit card acquisition and issuance, according to the company.
- The combination of Kalixa and PXP will enhance the competitive position of both businesses in the global and rapidly growing payments services sector.
- In 2013, the combined businesses processed a total transaction volume of €10 Bn, as stated in the press release.
- Kalixa says that it now possesses both the critical mass and breadth to offer end-to-end capabilities covering all payments across each of the three segments of the market – issuing, acquiring and acceptance – via any channel and any device using a single, integrated and advanced technology platform.
- Both Kalixa as well as PXP Solutions will continue to operate under their existing brand names and address their respective segments of the payments market.
- In 2013, Kalixa says that it processed transactions for 300 merchants globally.
- Also, 200,000 consumers worldwide utilize the Kalixa Pay prepaid e-wallet for physical and online purchases.
- PXP’s in-store payments technology is used by 8,000 merchants and retailers in 27 countries worldwide.
- Its customers range from SMEs to leading consumer brands including Urban Outfitters, Burger King and SAGA. It processes 3.6 Mn transactions every month.
“Today’s announcement marks a major milestone in creating a world-class payments company with an unrivalled portfolio across the entire payments value chain. Kalixa and PXP together now have the scale and breadth of services to expand significantly in the global payments market,” stated the CEO of Kalixa, Ed Chandler, in a press release. “We are focused on introducing Kalixa Pro and Kalixa Pay services to PXP’s extensive portfolio of merchants across 27 countries and in the process diversify into new sectors such as retail, travel and leisure, and financial services,” he added.
“The payments industry has a reputation for being complex, expensive and inflexible, while adding little value to merchants and consumers alike,” commented the CEO of PXP Solutions, Ritz Steytler, in the same release. “As a result of joining together with Kalixa, we can provide merchants of all sizes with one partner, one contract, and one service on a single, proven and fully integrated payments platform.”
Kalixa’s four core products are Kalixa Pay, a prepaid e-wallet with 200,000 users across Europe, Kalixa Pro, an mPOS for small businesses and sole traders, Kalixa Accept, which allows merchants to accept more than 200 payment methods and the PXP Payment Gateway with customers including Urban Outfitters, Intercontinental Hotel Group, bwin.party and MasterCard.
Following the acquisition of PXP, Kalixa says that it becomes one of the world’s top five payment services providers, based on capability and range of payment options. With its single payments platform, the Kalixa payments group provides merchants of all sizes with omni-channel payments from one supplier. In 2013, Kalixa and PXP processed global transactions worth a combined €10bn. The Kalixa group has an addressable market of more than 100 countries. It has over 200 employees internationally and offices in London, Gibraltar, Cologne, Vienna and New York.