Nairobi-based online payment service provider Direct Pay Online (DPO) has acquired PayFast, a payment processor based in South Africa.
A statement said the transaction by the DPO Group was executed through a mix of shares and cash, with the PayFast management team remaining key shareholders in the Group.
Following the transaction, DPO Group said it will be providing services to over 100,000 merchants across 18 African markets.
“The integration of PayFast into DPO’s services will increase the range of payment options available to DPO’s business customers, whilst providing a Pan-African solution to PayFast’s existing customer base,” said DPO. The firm serves over 25,000 merchants including more than 54 airlines, hotels, restaurants, travel agents, tour operators and other investors in the e-commerce sector. PayFast currently has 55,000 South African merchants.
“PayFast’s deep experience of payment processing and facilitation in South Africa complements and expands the services we can offer our business customers via the most diversified and robust suite of online payments options available in Africa,”said Group CEO and co-founder Eran Feinstein. “The coming together of two l will have a positive impact on the African payments landscape and create better future career opportunities for our current and future talent. I am excited to be working with the DPO team in growing the business further in the years ahead,” said Jonathan Smit, managing director and co-founder of PayFast.
DPO stablished in 2006 received Sh519 million ($5 million) funding in 2017, from a private equity (PE) firm Apis Partners. This was the second time the PE firm was investing in DPO after injecting Sh1 billion (Sh10 million) in 2016.
DPO has offices in Uganda, Tanzania, Zanzibar, Zambia, Rwanda, Ethiopia, Zimbabwe, South Africa, Namibia, Botswana, Malawi, Mauritius, Ghana and Nigeria.