Fintech group Adumo snaps up payments start-up SwitchPay
The value of the investment is undisclosed.
According to Adumo CEO Paul Kent, the investment comes as consumer interest in new payment options is at an all-time high.
“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,” says Kent.
“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.”
SwitchPay is a fintech company that provides retailers 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 fintechs.
Justin Hawkins, CEO of SwitchPay, says: “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.”
Kent adds the alternative payment options can help retailers increase their turnover, while expanding access to a wider group of customers.
“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.”
Adumo says it services more than 50 000 active clients and 90 000 active card machines, processing more than R80 billion in transaction value across 13 African countries.
The company counts some of South Africa's payment providers within its group structure, including Sureswipe, iKhokha, Innervation Pan African Payments, Innervation Rewards, Adumo Online, Humble Till, GAAP, and now SwitchPay.