MERGER BETWEEN TWO E-PAYMENT LEADERS CREATES CONTINENTAL MARKET LEADER
(Posted 29th September 2016)
Direct Pay Online Group today announced their merger with the leading payment service provider PayGate (Pty) Ltd
· DPO Group to acquire a significant majority stake in PayGate
· PayGate is the leading online payments processor based in South Africa
· The merger will create a leading pan-African payments processor with a presence across eight countries and local acquiring capabilities across 24 countries
This merger follows the recent investment in the DPO Group by Apis Growth Fund I, a private equity fund managed by Apis Partners LLP (“Apis”), a private equity asset manager focused on financial services in the growth markets of Africa and Asia.
PayGate was founded in 1999 and has more than 15 years of experience in providing payment processing and merchant services throughout Southern Africa. The Company enables quick, secure online payments through a wide variety of payment solutions in South Africa and beyond, and supports a large array of digital payment methods. Furthermore, PayGate has expanded aggressively into the rest of Africa and currently offers clients online acquiring in 24 African countries. PayGate has built a strong base of customers through its focus on building a best-in-class payments processing platform in Africa and eliminating the complexity of accepting online payments. Similar to the DPO Group, PayGate holds PCI DSS Level 1 Certification, the highest security certification in the payment cards industry.
The combination of 3G Direct Pay and PayGate under the Direct Pay Online Group will provide a single contact point for merchants looking to accept online payments across the continent. Merchants will have access to 60+ DPO Group employees across the continent to provide bespoke development solutions and customer support in their local language; a single integration that offers their customers the broadest suite of payment options in Africa and world-class security and fraud prevention.
Speaking on the merger, Peter Harvey, the Managing Director of PayGate said, ‘We are excited about the opportunity to partner with the DPO Group in building the market-leading payments processor in Africa. The merger is a landmark transaction for PayGate and a reward for our dedication to building the best-in-class platform and maintaining excellent customer service for our merchants. 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‘.
‘The PayGate team has grown a fantastic business, centred on providing the best online payments processing solution to its merchants‘ said Eran Feinstein, the DPO Group CEO before adding: ‘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‘.
Offer Gat, the DPO Group Chairman then added that ‘the merger with PayGate enables the DPO Group to offer a wider range of products and services across the whole of East and Southern Africa, and provides the Group with 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‘.
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.