NomuPay, formed from the ashes of Wirecard, acquires Total Processing for tooling and customer service

NomuPay — the payments startup formed from some of the healthier parts of badly-failed fintech Wirecard — has made an acquisition as it continues its path to better economies of scale. It was taken General Processingis a startup from Manchester that builds payment processing solutions for functions such as recurring payments, risk management, PCI compliance (data security) and payment integrations.

NomuPay paid about $35 million for Total Processing, and said the company’s total value is now $135 million.

For some context on that number, Total Processing appears not to have disclosed any outside funding since it was founded in 2015.

Dublin-based NomuPay announced earlier this year that it had raised $53.6 million in funding, and PitchBook estimates that the startup is valued at less than $172 million by September 2022. NomuPay says that PitchBook’s estimate is inaccurate and that “estimates are constantly rising,” according to NomuPay CEO Peter Burridge.

That’s an important point, given how many down-rounds and write-offs there have been in the tech industry in the past year.

NomuPay has so far focused on acquiring or purchasing licenses to handle payments in Southeast Asia, Europe, Turkey and longer term in the Middle East. But Burridge told TechCrunch that he sees Total Processing as an opportunity to add more tools around its core payments, as well as customer services for its business users.

“Nobody drives a car without a spare tire,” he said of the deal and how it widens the funnel for what NomuPay can offer its customers. “The value proposition is that Total Processing has this tech stack that’s part of solving the merchant’s pain. And it’s a consultative sell as well. You’re not going to get an answer from a real person at Stripe or Adyen. You’re not talk to anyone.”

The plan is to continue scaling Total Processing now to expand to more markets, starting with Hong Kong and Southeast Asia. Total Processing itself is most active in the UK and United Arab Emirates and so NomuPay will use that to expand its own footprint. Neither company discloses how many customers they have, or turnover (that is, revenues).

M&A comes as a viable option for many startups that may have an interesting underlying business and technology, but struggle to close rounds on terms that make sense to them even though they may need more runway to operate or grow. It’s a buyer’s and supporter’s market today.

Consolidation is also a long-term theme in fintech that precedes the current funding downturn. Margins remain thin for many digital payment services – mainly due to the many stakeholders involved looking for a cut – and therefore joining forces for better economies of scale more broadly geographies, or by offering a fuller stack of services to customers, is a no-brainer.

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