SwitchPay, a South African business providing alternative payments options to merchants and retailers, has been acquired by Adumo, one of South Africa’s largest independent payment processors, for an unknown sum. The investment comes at a time when consumer interest in new payment choices is at an all-time high, according to Adumo CEO Paul Kent.
“We are proud to have built an innovative digital platform that has attracted this investment from 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,” said Justin Hawkins, CEO at SwitchPay.
Why The Acquisition?
Founded in 2018, SwitchPay is a fintech startup that provides a digital platform for shops to provide their consumers other payment ways in-store and online, such as purpose-based financing, customized subscription models, and lay-by. Through API connection, the company’s platform supports third-party payment products, and its credit-related products aggregate different credit sources, such as banks and other fintech.
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Adumo has over 50,000 active clients and 90,000 active card machines in thirteen African countries, processing over R80 billion ($5bn) in transaction value. Sureswipe, iKhokha, Innervation Pan African Payments, Innervation Rewards, Adumo Online, Humble Till, GAAP, and now SwitchPay are among the company’s trusted payment suppliers.
“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,” said Kent.
Alternative payment methods, according to Kent, can help merchants improve sales while also allowing them to reach a wider range of clients.
“By simplifying the in-store payment process and enabling greater choice in how consumers pay for goods, the services offered by SwitchPay can increase basket size and help improve customer retention. As the effects of the pandemic continue to affect consumers and merchants alike, the ability to offer a wider range of payment options can help merchants grow their customer base and revenue at a critical time,” he said.
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Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer