Adumo, a South African Fintech company, and one of the biggest payments platforms in South Africa reported today that it has bought SwitchPay, a startup fintech company responsible for providing alternative payment solutions for in-store and online merchants.
According to Adumo CEO Paul Kent, the investment comes at a time when consumer interest in new payment options is at an all-time high.
The amount invested was not disclosed by Adumo.
“The impact of the pandemic and the rise of new, more convenient and value-adding payment options is revolutionizing 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,” Kent stated.
SwitchPay is a digital payment provider that offers merchants a digital platform where customers can utilize an alternative payment service in-store and online including lay-by, customized subscription models, and purpose-based lending.
SwitchPay uses an API system that supports third-party payment products. The company also integrates credit-related products from several credit providers including banks and other fintech.
“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.
Kent added that the alternative payment options provide retailers with a wider range of customers which will help them scale up their revenue.
“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 has over 50,000 active clients and 90,000 active card machines in thirteen African countries, processing over R80 billion 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 alternative payment suppliers.