Razorpay, a digital payments and financial services firm, has acquired PoshVine, a loyalty management platform, for an undisclosed amount.

With this acquisition deal, Razorpay is expected to help banks increase customer retention for their credit offerings through new merchant offers. Also, as part of the deal, PoshVine’s 36-member team will join Razorpay and operate its loyalty and rewards vertical.

Razorpay | Full-stack Financial Solutions 

By integrating PoshVine’s loyalty and reward offerings on its point-of-sale network, Razorpay expects to enhance the offline shopping experience for customers.

The acquisition of PoshVine is expected to help allow merchants to automate the process of pitching discount offers to banks. It will also provide timely and customised offers to customers and allow them to pay through credit points of banks during merchant checkouts.

Speaking about the development, Shashank Kumar, Managing Director and Co-founder of Razorpay, said,

“We continue to see a bigger opportunity to work with banks and help them upgrade their financial infrastructure. While banks can acquire a customer for their credit card offering, they are unsure if it will be used. That’s where we see the rewards and loyalty play coming in, where it is critical to provide the right offer in the right context.”

This development comes close on the heels of Razorpay’s $200-million acquisition of offline point-of-sale (PoS) firm Ezetap last month. The acquisition of PoshVine is the fourth acquisition made by Razorpay this year, the seventh overall.

Founded in 2011, PoshVine provides intelligent offers and rewards programs to cardholders based on their spending patterns. The startup works with major banks and payment networks such as HDFC Bank, Visa, DBS, SBI Card, Kotak Mahindra Bank, AU Small Finance to increase customer engagement through its offers and reward management solutions.

This deal will enable PoshVine get access to Razorpay’s large base of over 8 million merchants. Currently, PoshVine aggregates offers from over 5,000 merchants and bring them in one solution to banks, which is then extended to credit card holders.

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