Firm buys stake in Paynet Group

Paynet Group CEO Bernard Matthewman at a past media briefing. Interswitch Transnational Holdings has acquired a majority stake in Paynet Group, in a deal that will see the West African company extend its footing in East Africa. FILE PHOTODIANA | NATION MEDIA GROUP

By  RAMENYA GIBENDI

What you need to know:

  • “This partnership will significantly expand our footprint in East Africa and uniquely positions us in the market,” Interswitch managing director Mitchell Elegbe said.
  • If approved, the joint venture will unite financial institutions in East and West Africa on a single network, thus simplifying cross border transactions.

Interswitch Transnational Holdings has acquired a majority stake in Paynet Group, in a deal that will see the West African company extend its footing in East Africa.

The two companies are hoping to increase the reach of their electronic payment services to more than 100 financial institutions in Africa.

The pair announced the agreement yesterday in a joint statement, saying it would help Interswitch grow its footprint in East Africa, riding on the network established by Paynet. They did not, however, disclose the deal’s worth.

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Paynet was founded in Kenya in 2003, and has three brands:Paynet, PesaPoint and Electronic Financial Technologies.

EAST AFRICA

“This partnership will significantly expand our footprint in East Africa and uniquely positions us in the market,” Interswitch managing director Mitchell Elegbe said.

Under the agreement, which is now awaiting regulatory approval, existing shareholders of Paynet Group will become shareholders of Interswitch.

Both companies emphasised that the partnership would enable them to take advantage of the fast-growing East-West African trade. Interswitch has its headquarters in Nigeria.

If approved, the joint venture will unite financial institutions in East and West Africa on a single network, thus simplifying cross border transactions.

“Interswitch has a comprehensive range of products; this alongside their existing presence in Uganda provides us with additional strength as we continue to grow in East Africa,” Paynet boss Bernard Matthewman said.

He will be retained as the chief executive officer upon completion of the ownership structure.

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