Skrill Group has extended its payments capabilities with the acquisition of Ukash, a provider of online prepaid services.

Skrill, which provides a platform for sending and receiving money online, has been investing in growing its business since it was bought by private equity firm CVC Capital Partners for €600 million (£511m) in August 2013.

Skrill homepage on laptop
Skrill homepage on laptop

The company said that the purchase of Ukash will boost its paysafecard product, which it acquired last year. Paysafecard allows customers to swap money for a unique code that can be used for online transactions with gaming, social media and entertainment sites.

By combining paysafecard and Ukash, Skrill hopes to expand its digital payments services in Europe, as well as expanding into emerging markets.

Terms of the deal were not disclosed.

“The acquisition of Ukash will significantly extend our reach in the high-growth prepayment market,” said David Sear, who will become CEO of Skrill Group in January next year.

“We are proud to support both consumers and online businesses with the world's largest online cash replacement payment method and look forward to serving a combined base of millions of consumers around the world”.

Sear had previously been CEO of Weve, a joint venture between three of the UK's largest mobile operators aimed at contactless payments in the UK.