Payments company Novatti has acquired a rival payments processing company, Emersion.Emersion is a fintech that integrates billing and payments processing into customer relationship management and managed services systems. It has business relationships with Salesforce, Xero and ConnectWise.It has more than 70 customers and more than 80 per cent of its revenue is recurring.Emersion earned revenue of A$1.7 million in 2018/19 and reported EBITDA of $300,000.Consideration for the acquisition is $2.6 million, including $1 million in cash, to be paid in instalments, and 16.7 million Novatti shares (the shares are currently trading around 12 cents).Novatti's business includes billing software and payments processing partnerships, prepaid cards, digital wallets and remittance. Transaction processing accounts for more half of its revenue.It has been operating since 1996 and was listed on the ASX in 2016.In the December half it earned revenue of $4.9 million and made a loss of $6.7 million.Novatti has been working towards a banking licence, with plans to be a specialist migrant bank. It submitted a revised application for a restricted banking licence late last year.Novatti managing director Peter Cook said in a statement: "The acquisition strengthens Novatti's existing capabilities to digitise payment and subscriber management services, while also expanding its recurring revenue and loyal customer base."