Gurgaon-based mobile wallet company, MobiKwik has signed a subscription agreement with South Africa-based Net1 UEPS Technologies, Inc.\r\n\r\nAs part of the strategic partnership, Net1 will invest $40 Mn in MobiKwik. In addition, Net1\u2019s Virtual Card technology will also be integrated across all MobiKwik wallets in order to provide ubiquity across all merchants in India.\r\n\r\nSerge Belamant, Chairman and CEO of Net1 said, \u201cWe believe that this investment will accelerate our ability to build scale in India. Over the next three years, MobiKwik has targetted having 150 million users and 500,000 merchants, and the introduction of our various technologies is expected to enhance their value proposition and differentiation to users, online and offline merchants, increase acceptance, and accelerate growth. With Net1\u2019s expertise and track record in facilitating financial inclusion across Africa, our strategic relationship with MobiKwik marks an important milestone from which we can leverage India\u2019s substantial efforts to drive financial inclusion, down to the grassroots in rural and deep rural areas. Many of our solutions, most notably UEPS\/EMV, are tailor-made to provide multiple financial and other services, increase accessibility, eliminate fraud and reduce cash.\u201d\r\n\r\nAccording to a July 2016 Google-BCG study, the size of India\u2019s digital payments industry will reach $500 Bn by 2020, representing a ten-fold increase from current levels. The report predicts that more than 50% of India\u2019s Internet users are expected to use digital payments by 2020, and the top 100 Mn users are expected to drive 70% of digital payments by value. The report also predicts that the value of remittances and money transfers that will pass through alternative digital payment instruments will double to 30% by 2020.\r\n\r\nNet1 is a provider of alternative payment systems that leverage its Universal Electronic Payment System (\u201cUEPS\u201d) or utilise its proprietary mobile technologies. The Company operates market-leading payment processors in South Africa and the Republic of Korea. Through Transact24, Net1 offers debit, credit and prepaid processing and issuing services for Visa, MasterCard and ChinaUnionPay in China and other territories across Asia-Pacific, Europe and Africa, and the United States. Through Masterpayment, Net1 provides payment processing and enables working capital financing in Europe.\r\n\r\nOn the other hand, MobiKiwk was founded in 2009 by Bipin Preet Singh and Upasana Taku. It is a wallet that enables users to pay in a flash for their mobile recharge and bill payments. It has partnered with over 50,000 businesses like Caf\u00e9 Coffee Day, PVR, Domino\u2019s Pizza, Pizza Hut, TastyKhana, JustEat,eBay,Jabong, Snapdeal, ShopClues, HomeShop18 among others.\r\n\r\nMobiKwik has over 32 million users and 100,000 retailers on its platform. MobiKwik\u2019s current shareholders include Sequoia Capital, Tree Line Asia, American Express, Cisco Investments, GMO Payment Gateway and MediaTek, as well as Bipin Preet Singh and Upasana Taku, the founders and executive officers.\r\n\r\nPrior to this in May 2016, Mobikwik raised an undisclosed amount of funding led by Japan\u2019s GMO Payment Gateway and Taiwanese fabless semiconductor company MediaTek. In December 2015 it closed about $6.5 Mn (INR 44 Cr.), in a mix of debt and equity funding from existing investors Sequoia Capital and Asia-focussed hedge fund Tree Line Asia. The round also saw participation from Cisco Investments and American Express.