Direct Pay Online Group (DPO) has mastered the fasted way of growth acquiring already exisiting companies with customers instead of going for the customers itself directly.
The firm today acquired Setcom (Pty) Ltd, which operates SID Instant EFT, the original and leading instant electronic funds transfer (EFT) solution in South Africa.
The acquisition is its fourth in Southern Africa after it acquired PayGate South Africa in September 2016, VCS Namibia and Botswana in March 2017, PayThru South Africa in June 2017, and VCS South Africa in August 2017
DPO says the deal will see Setcom complement comprehensive suite of payment solutions across the continent for all major cards, mobile money and e-wallets.
According to Offer Gat, the DPO Group Chairman: “We are excited to add South Africa’s leading Instant EFT solution to our suite of products, and look forward to working with Setcom’s innovative team, including the founder and instant EFT innovator David Liu.”
Setcom began its operations in 1999 and has been providing secure online card processing to hundreds of South African online merchants since then. In 2007, the company launched SID Instant EFT, a secure payment product that allows real-time funds transfer from a customer’s to a merchant’s bank account through an efficient and easy-to-use online platform.
SID has enabled merchants across South Africa to collect instant EFT payments via websites, email or invoices, and has become one of the most popular online payment methods in the country.
The acquisition of Setcom, and the subsequent incorporation of SID Instant EFT into the DPO product suite, will allow DPO to be the first Payment Service Provider (PSP) to offer merchants with a single solution for all their online payment needs, ensuring that through a single and simple integration, merchants will be able to accept payments through card, mobile money and EFT across the African continent.
Though DPO Group says it serves over 25,000 online merchants in Africa including over 50 airlines, thousands of hotels, restaurants, travel agents, tour operators and other players in the e-commerce sector, a majority of these have been acquired through acquisitions and not its fancy tech. If its products were superior, DPO wouldn’t need to buy out any competition. On the other hand, the acquisitions will give it the volumes it wants to turn profitable or go public.
DPO Group CEO, Eran Feinstein seems to expound on these acquisitions.
“Setcom has continuously innovated and achieved impressive results in the South African payment space,” he said. “We plan to expand and promote SID to all current and future merchants across our markets so that they may offer this payment option to their customers, further helping them to enhance their businesses.”