Mumbai-based PayMate, a  B2B payments firm, has announced its intention to acquire Indonesian FinTech-as-a-Service (FaaS) provider DigiAsia in a deal valued at $400 million. This acquisition will enable PayMate to establish a presence in the Indonesian market, with plans for the merged entity to go public in India following the transaction’s completion.

PayMate specializes in streamlining and digitizing B2B payment processes, which enhances working capital optimization and ensures timely payments to suppliers. The company reported processing $10.5 billion in transactions in the 2024 fiscal year. Its move into Indonesia follows recent expansions into Singapore, Australia, and Malaysia.

Additionally, PayMate’s services have gained traction in the Persian Gulf, where the National Bank of Oman has implemented the firm’s B2B payment automation solutions, facilitating supplier payments for corporate clients and small to medium-sized businesses (SMBs) via Visa Business Credit Cards.

DigiAsia, operating in Indonesia, employs a “B2B2X model,” offering a range of embedded finance APIs designed to assist small and medium-sized enterprises (SMEs). These solutions aim to streamline operations across the commerce value chain for distributors and customers in emerging markets.

As the B2B payments landscape evolves, there is an increasing demand for modern systems that prioritize speed, security, and flexibility. Companies are progressively adopting smarter payment solutions to minimize friction in critical purchasing stages, exemplified by recent partnerships like Mondu’s integration with Stripe, allowing B2B merchants to offer buy now, pay later options through their existing platforms.