Ola, India-based taxi hailing app has made an acquisition into Qarth, which is the company that has developed a mobile payments app called X-Pay.
X-Pay is an Andriod-only payments application that facilitates payments through mobile devices to anyone with an IMPS (Immediate Payment Service)-enabled bank account in India.
This follows up from their launch of Ola Money, Ola’s own mobile payment business, which was launched back in November 2015.
Due to their overwhelming success in the transportation industry, Ola has decided to venture into the fintech space whereby customers are able to make online, advance payments to Ola.
Nonetheless, Ola has recently gotten into trouble as credit to Ola drivers have been severely delayed, leading to dissatisfied drivers who are now reluctant to accept Ola Money as a payment method. Ola’s commitment was to credit payments into their driver’s accounts within 48 hours after completion of the ride, which has not been happening.
Back to the acquisition of the X-Pay, Anand Subramanian, the Senior Director of Marketing Communications mentioned that “With acquisitions like Qarth, we are investing in building seamless digital payment solutions. As we work towards our mission of building mobility for a billion people, we will continue to build for a best in class payment experience for our users,”
The reason behind this acquisition is said to enhance, instead of replace Ola’s own Ola Money. Ola will also be integrating the technology behind X-Pay into their own platforms to build a seamless platform.
*Image taken from Quartz India