With fresh funding from PE firm Apis Partners LLP, Kenya’s payments processor Direct Pay Online Group, formerly 3G Direct Pay has acquired a majority stake in South Africa’s online payments processor PayGate (Pty) Ltd for $7.3m in its pan-African expansion drive.
Founded in 1999, PayGate enables quick, secure online payments through a wide variety of payment solutions in South Africa and 24 other African countries and has been focused on eliminating the complexity of accepting online payments just like Direct Pay. The deal gives DPO Group a single contact point for merchants looking to accept online payments across the continent with support in their local language; a single integration and a broad suite of payment options.
According to Eran Feinstein, the DPO Group CEO, “This merger allows the DPO Group to build a pan-African payments platform with a presence across eight countries and processing ability in a further 24 countries. Together, the Group will accelerate the growth of online payments in Africa, as we seek to empower every person and organization to have the option to pay and be paid online anywhere, anytime, and by any mode of payment.”
PayGate MD Peter Harvey says his firm is excited about the opportunity adding that the merger is a landmark transaction for PayGate and a reward for its dedication to building the best-in-class platform and excellent customer service.
”This is also an incredible opportunity to support our clients’ expansion across the African continent through additional on-the-ground coverage across the Group’s countries of operation,” Harvey added.
Following the transaction, Peter Harvey will continue to lead the DPO Group’s activities in the South Africa Common Monetary Area, and will work closely with Eran Feinstein to grow the Group’s business in its current markets and in new regions over the coming years.
Offer Gat, the DPO Group Chairman says the deal gives the DPO Group a wider range of products and services across the whole of East and Southern Africa, and gives it a strong foothold in the large South African e-commerce market. The Group will be in a better position to serve the growing number of African and global multinationals looking to serve consumers anywhere on the African continent.”