PayFast is one of the best known online payment processors in South Africa. The South African company currently offers payment processing for many major online retailers across the country.
Not surprisingly PayFast’s success has garnered interest from beyond our borders culminating in the news that the DPO Group has acquired the payment processor. DPO Group are the leading payment service providers on the continent.
Kenyan-owned company will provide payment services to over 100 000 merchants across 18 markets once the acquisition is completed. PayFast currently provides payment services to 55 000 South African merchants.
PayFast has been in business since 2007 and has helped make payment processing and instant EFT offerings ubiquitous through its extensive integration with e-commerce solutions.
Benefit for smaller merchants
PayFast currently integrates with 80+ e-Commerce platforms with no monthly or setup fees making it a very appealing option for smaller merchants.
Offer Gat, Chairman and co-founder of DPO Group said PayFast is a natural fit for the DPO group, and that the deal “strategically follows” the acquisitions of PayGate, VCS, Paythru and SiD for the last three years. He added:
“This deal, which we believe is the largest acquisition by a PSP in Africa, reinforces our position as a leading PSP on the continent and is an important step forward in our strategic growth across Africa.”
Gat also said that the combination of DPO Group and PayFast will “greatly increase the ability of merchants on our platform to do business with their clients both within and outside of Africa.” He concluded:
“Finally, it will allow DPO to continue to improve merchant services, allowing more merchants to transact more broadly at lower cost.”
Online shopping made easy
PayFast boasts the most extensive variety of shopping cart integrations on the continent and allows consumers to securely make payments without the need for a credit card utilising it’s Instant EFT service.
Jonathan Smit, Managing Director and co-founder of PayFast said that integrating their facilitation capability its huge geographical reach across 18 countries in Africa is an extremely exciting opportunity for both companies. He added:
“The coming together of two leading online payment specialists 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.”
Expansion in Africa
DPO’s acquired PayFast through a mix of cash and shares. The acquisition will ensure that the PayFast Management team remain key shareholders in Nairobi-based company.
The company currently works with 45 000 merchants, including 60+ airlines across Africa to facilitate online and offline payments.
DPO’s whose merchants include Uber, Expedia and Booking.com currently operates in 18 African countries with the goal of increasing that to 28 in the next two years.
The acquisition of PayFast follows the group’s acquisition of another South African payment processor PayGate, in 2016.
SOURCE: Cheryl Kahla