The International Financial Corporation (IFC) a member of the World Bank Group, and the IFC Financial Institutions Growth Fund have put mechanisms into place to expand access to electronic payment solutions, especially for underserved small and medium-sized businesses with $15 million funding. The funding to Adumo, South Africa’s largest independent payments processor that offers a range of smart payment solutions to large multinational and independent retailers as well as entrepreneurs and informal traders. Its group companies include Sureswipe, iKhokha, Humble, Innervation Pan African Payment Solutions and Innervation Rewards.
With presence in 14 African countries, and IFC’s investments will support Adumo to make digital payments systems more affordable and accessible to smaller businesses in Africa, many of which currently rely on cash transactions.
Read also:Egyptian Fintech API Startup Dayra Raises $3 million In Pre-seed, Backed By Y Combinator
The investment by IFC and the IFC Financial Institutions Growth Fund, a fund managed by IFC’s Asset Management Company, consists of US$15 million in preferred shares to fund the growth of the company.
“The pandemic and associated impact on consumers and businesses are transforming the face of the payments industry with interest in cashless payment services at an all-time high. The funds we have raised from our new equity partners will help us roll out new payment innovations and purpose-based lending services to support consumers and retailers as they navigate an uncertain 2021,” said Paul Kent, chief executive officer (CEO) at Adumo.
Read also:Will Technology Reinvent ‘the New Normal’ in 2021?
“Through this investment in Adumo, we will be helping small businesses tap into the digital economy, which is more important now than ever before. Digital payments are often the first step for a small business to build a credit history, which opens the way to access further financial services such as financing to grow the business,” said Sérgio Pimenta, IFC’s vice president for the Middle East and Africa.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry