Interswitch acquires majority stake in Paynet

By Princvewill Ekwujuru

Interswitch Transnational Holding, a pan-African integrated payments company has acquired a majority shareholding in Paynet Group, an East African multi-institutional payments provider.

The partnership will enable Paynet Group combine businesses with Interswitch, as the existing shareholders of Paynet Group will become shareholders of Interswitch.

Group Managing Director / Chief Executive Officer of Interswitch, Mitchell Elegbe said: “To build a successful payments business, customers are looking for trust, scale, efficiency and a proven track record of execution.

This partnership will significantly expand our footprint in East Africa and uniquely position Interswitch in the market. The new business will provide comprehensive solutions for regional and international businesses looking to take advantage of growth opportunities in Africa.”

“Paynet have done a great job at building an innovative and trusted payments company in East Africa and we are confident that between us we can drive growth by continuing to provide payment solutions that are highly tailored to the African market.

Bernard Matthewman will remain as Chief Executive of the Paynet business and we intend to leverage the strength of Paynet’s existing management team. “

Also speaking, Bernard Matthewman, CEO of Paynet, who stays on as the CEO of the company noted that payments market in East Africa is moving rapidly into an era where specific products are required for sectors like transport, health, government and county payments as well as the move towards secure Internet based payments. Paynet has been looking for a partner that has both products and experience in these areas so we can rapidly deliver them in the most efficient manner.

Interswitch has the most comprehensive range of products of any provider we have seen in an emerging market and this alongside their existing presence in Uganda provides us with additional strength as we continue to grow in East Africa.”

He went to say that the transaction creates an unriva led payment infrastructure across East and West Africa. The new combined network will connect over 100 financial institutions, Paynet’s existing shareholders will become shareholders of Interswitch

The deal, which is subject to regulatory approvals, comes at a time when both governments and private institutions across Africa are looking to cashless solutions and financial inclusion to accelerate economic growth and drive business efficiency.

Both companies had emphasised that the deal will enable both companies to take advantage of fast-growing East-West Africa trade and continue to provide their customers, both businesses and government, with a trusted partner.

The new company will create an unrivalled payment infrastructure across East and West Africa, uniting financial institutions on a single network, integrating transaction solutions seamlessly into businesses, and creating a secure and convenient way to make cross-border transactions.

The new combined network will connect over 100 financial institutions in West and East Africa.