ROTTERDAM/LONDON, 18 February 2020 - Alphacomm, a fast growing fintech company headquartered in Rotterdam, today announced the acquisition of the activities of AIM listed Mi-Pay. Alphacomm has focused on securing revenues for clients active in the sales of digital goods or post-paid services to consumers and serves clients like T-mobile, Eneco, KPN, Arvato, 02 and Deutsche Bank to boost revenues and protect them against fraud or bad debt.
Mi-Pay's history
Since 2003, AIM listed Mi-Pay has successfully delivered secure, optimized, fraud free solutions to the market. With clients like Three Ireland, FNT, Tesco and Sure it has a strong foothold in Britain and Ireland. Its internally developed anti-fraud solution called Cynic is unique in the world and able to provide indemnified online payment solutions to clients selling digital goods.
The growing threat of online payment fraud
Gift cards, Pre-pay top-ups as well as products like online game licenses are highly attractive to fraudsters. Juniper Research projected online sellers will lose $130 billion to online payment fraud between 2018 and 2023. A study from MRC Global showed that online payment fraud costs global business 1.8 % of revenues.
Strengthening Alphacomm's position
The acquisition of Mi-Pay provides Alphacomm access to a development centre in Romania, with over 30 highly talented developers and customer support managers. In addition, Alphacomm can now offer PCI level 1 certification to its clients, bringing an even higher security level to its clients' transactions.
The acquisition of Mi-Pay will further increase Alphacomm’s position as the leading secure payment provider enabling the increase of revenues for clients while protecting them against fraud and bad debt. Processed volumes on the Alphacomm platform will increase to over 250 million Euro in 2020, bringing the company closer to its target of 750 million Euro in 2025. Furthermore, Alphacomm will gain a much stronger foothold in Europe as well as increased investment capabilities. Acquiring Mi-Pay will per direct contribute to Alphacomm’s profits, keeping its gross profit margin of over 60 % intact.
Huub Sparnaay, CEO of Alphacomm: “The acquisition of Mi-Pay will bring Alphacomm closer to its ambition in becoming the dominant revenue generating platform in 2025. We are planning to do this through a buy and build strategy rapidly internationalizing the delivery of our products and services to organizations on a global scale, our dedication to grow our clients revenues is something companies all around Europe can now benefit from”.
About Mi-Pay
Mi-Pay, based in the UK, frees customers from fraud risks and makes payments simple. With offices in London and Sibiu Romania and a team of 35 it is taking away frictions in the payment process.
About Alphacomm
Alphacomm is leading in boosting revenues for its customers and is based in The Netherlands. With a team of 30 and offices in Rotterdam and Kleve it is supporting its resellers with platform-based services to maximize earnings and reduce fraud.
