PayU, an Amsterdam-based payments firm and the fintech arm of Naspers, has announced its acquisition of Wibmo, a Cupertino, California-based payments firm, for $70 million, in a move that is designed to consolidate the digital payments business in India.

The companies said the agreement will harness the strong merchant network of PayU and the digital transaction security business of Wibmo to offer to Indian merchants and financial institutions.

"India is a priority market for PayU and we are committed to making digital payments frictionless through our innovative products and services, supporting the government's vision of a digital India," Aakash Moohndra, chief financial officer at PayU, said in the announcement. "PayU's technologically future-ready products are defining and reinventing India's payments landscape, supporting the country's transition to a cashless, digital economy."

Wibmo founder and CEO Govind Setlur said that PayU has become the largest online payments processor in India, serving more than 350,000 merchants.

"By combining our track record and expertise in payment security and mobile payments with PayU's strong merchant network and heritage in payments, the combined entity will be focused on delivering more secure and seamless payments experience to its customers," he said.

Setlur will report to the PayU India CEO and Wibmo will operate as a subsidiary of PayU.