Adumo, a South African fintech startup, has announced that it has acquired SwitchPay, a South African startup providing alternative payment services to merchants and retailers, for an undisclosed amount.
Adumo services more than 50,000 active clients and 90,000 active card machines, processing more than R80-billion in transaction value across thirteen African countries.
SwitchPay is a fintech company that provides retailers with a digital platform to offer their customers alternative payment methods both in-store and online, including purpose-based lending, customised subscription models, and lay-by. The company’s platform supports third-party payment products through API integration, and its credit-related products aggregate multiple credit providers, including banks and other fintech.
Adumo, CEO Paul Kent said: “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.
“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.