Indian mobile payments provider Paytm invested an undisclosed sum in advertising company MobiQuest Mobile Technologies, and is set to use the latter’s loyalty products to expand the scope of its merchant-focused service.

In a company blog, Paytm – which supplies both mobile wallets for consumers and QR-code based payment facilities for 5 million retailers in India – said the tie-up would allow its business customers to use data analytics and mobile marketing to increase customer engagement.

MobiQuest sells mobile advertising and loyalty technologies to brands and retailers. Its m’loyal platform, the service set to be rolled out by Paytm, includes a loyalty app which connects with point of sale technology, collects purchase data and allows push advertising.

Paytm VP Sudhanshu Gupta said: “Over the last year, we have enabled our partnered offline merchants with Paytm’s QR code based payment solution. In the next phase, we aim to enable them with tools that will help them drive incremental sales and revenues. Our partnership with MobiQuest will help us offer mobile-based loyalty programs.”

Vineet Narang, CEO of MobiQuest, added: “We are excited to partner with Paytm and leverage the huge consumer base of the platform.”