Paul Kent - Afrikan Heroes

South African Fintech Startup, SwitchPay, Acquired Three Years After

December 1, 2021

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.

SwitchPay acquired — *Adumo CEO Paul Kent. Credits: Adumo*

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.

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.

SwitchPay acquired SwitchPay acquired

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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

IFC Extends $15 million to South Africa’s Fintech, Adumo

March 12, 2021

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.

Paul Kent, chief executive officer (CEO) at Adumo.

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.

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.

“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

South African Fintech Firm Adumo Secures $15m From The IFC

March 9, 2021

South Africa’s largest independent payments processor, Adumo has landed $15m from the International Finance Corporation (IFC). IFC’s investments will support Adumo to make digital payment systems more affordable and accessible to smaller businesses in Africa, many of which currently rely on cash transactions. Adumo, South Africa’s largest independent payment provider with a presence in 14 other African countries, owns merchant acquirers Sureswipe and Ikhokha and payment processor Innervation Pan African Payments.

“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, CEO at Adumo.

The investment by IFC and the IFC Financial Institutions Growth Fund, a fund managed by IFC’s Asset Management Company, consists of up to $15 million in preferred shares to fund the growth of the company. IFC combines investments and advisory services to help financial intermediaries reach more small businesses in Africa and other emerging markets.

“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. “Supporting small businesses to access finance and financial services affordably and sustainably is a priority for IFC because of their potential to not only grow the economy but also create jobs.”

In South Africa, micro, small and medium-sized enterprises employ over 50 percent of the work force and contribute around 34 percent of GDP, but many don’t have access to key services that would help their business grow. Digital and mobile payment solutions can help businesses increase footfall and improve customer retention by supporting the transition away from cash-based transactions.

Adumo, previously known as Crossfin Transactional Solutions, processes more than $5 billion in transactions annually through more than 30,000 active clients and across 50,000 active card machines.

A Look At Adumo

Adumo is South Africa’s largest independent payments processor, offering a range of smart payment solutions to large multi-national and independent retailers as well as entrepreneurs and informal traders. Adumo’s group companies, which include Sureswipe, iKhokha, Humble, Innervation Pan African Payment Solutions and Innervation Rewards, process more than R66-billion in transactions annually across more than 30 000 active clients and 50 000 card machines in 13 African countries.

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

Adumo $15m