Canadian fintech firm Mogo has agreed to purchase digital payments solutions provider Carta Worldwide in an all-stock deal in a bid to foray into the B2B payments space.

The transaction worth C$24.2m will see Mogo buying 100% of the outstanding shares of Carta in exchange for the issuance of 10 million common shares.

The combined group will target a C$2.5trn addressable market and have operations in more than 40 countries.

Mogo will integrate Carta’s transaction processing technology with its MogoSpend offering and will also use Carta’s technology to launch its mobile P2P payment solution next year.

On the other deal, Carta will gain the ability to cross-sell Mogo’s front-end digital platform through the deal.

Carta has a presence in Europe, Asia and Canada and the US and a workforce of 70.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The firm, set up in 2007, powers more than 100 card programmes and offers processing technology to firms such as TransferWise, Sodexo, and Payfare.

Mogo president and CFO Greg Feller said: “This transformational transaction further enhances Mogo’s position as one of Canada’s leading fintech companies, accelerates the growth of our subscription & transaction-based revenue, and expands Mogo’s TAM into the $2.5 trillion global payments business.

Carta lead director Chris Payne will secure a seat on the Mogo board upon deal completion in the first quarter of next year. The executive team of Carta will continue to manage the business as part of Mogo.

The deal has already been cleared by the Mogo board. It now awaits shareholder and regulatory approvals.

Mogo founder and CEO David Feller said: “By using Carta’s payment processing engine, we expect to enhance Mogo’s digital wallet capabilities which includes the development of our upcoming peer-to-peer payment solution, and – when combined with our digital front-end capabilities – we see great opportunity to power the next generation of platforms globally.”

Recently, Mogo was in the news for adding more contactless payment options to its digital spending account MogoSpend.

MogoSpend, which comes with a Mogo Visa Platinum prepaid card, now supports Apple Pay, Google Pay and Samsung Pay payment options.