SwitchPay, a provider of alternative payment solutions for consumers in-store and online, has been acquired by Adumo, a South African fintech company, for an undisclosed amount.
Adumo is South Africa’s largest independent payments processor, with over 50,000 active clients that include large multinational and independent retailers, as well as entrepreneurs and informal traders. Sureswipe, iKhokha, Humble, Innervation Pan African Payment Solutions, and Innervation Rewards are among the company’s partners.
IFC, a member of the World Bank Group, and the IFC Financial Institutions Growth Fund invested ZAR225 million (US$15 million) in Adumo in March to improve access to electronic payment solutions, especially for underserved small and medium-sized businesses.
SwitchPay, a payments platform that provides retailers with access to a digital platform to provide their consumers various payment ways both in-store and online, such as purpose-based lending, customised subscription models, and lay-by, has now been acquired by the company. Through API integration, the company’s platform supports third-party payment products, and its credit-related products aggregate multiple credit providers, including banks and other fintechs.
Adumo chief executive officer (CEO) Paul Kent said the acquisition comes at a time when consumer interest in new payment options is at an all-time high.
“The impact of the pandemic and the rise of new, more convenient and value-adding payment options is revolutionising how South Africans purchase goods and services. The team at SwitchPay has built a world-class suite of alternative payment solutions that brings new forms of value to consumers and retailers alike. We look forward to working with the team as we bring convenient new payments within reach of all South Africans,” he said.
SwitchPay CEO Justin Hawkins said he was proud to have built an innovative digital platform that has attracted the attention of Adumo.
“We now have an established partner in payments that we can learn from whilst leveraging one another to unlock growth opportunities. This investment allows us to shift our focus to scaling the business through delivering on our core purpose of growing our merchant partners by providing their customers access to affordable and responsible financing products,” he said.