New Delhi, Aug. 26: South African global payments solutions company Net1 UEPS Technologies Inc will invest $40 million in MobiKwik to gain entry into India's fast growing digital wallet market.

Net1 will also integrate its virtual card technology across all MobiKwik wallets.

The domestic digital payments market is set to be worth $500 billion by 2020, according to a Google-BCG Study.

Founded in 2009, MobiKwik competes with Alibaba-backed PayTM and Snapdeal's payments arm FreeCharge in the online wallet space.

In May, MobiKwik had raised $50 million, led by Japan's payment gateway GMO and Taiwan-based semi-conductor company MediaTek.

"Our strategic investment in MobiKwik provides us with meaningful participation in one of the fastest growing digital payment markets globally. This investment will accelerate our ability to build scale in India," said Serge Belamant, chairman and chief executive officer of Net1.

Over the next three years, MobiKwik aims to have 150 million users and half a million merchants.

Net1 is a provider of payment solutions and transaction processing services. It has a primary listing on the Nasdaq and a secondary listing on the Johannesburg Stock Exchange. Its universal electronic payment system uses biometrically-secure smart cards that operate in real time but offline.