Integrated payments company Interswitch Transnational Holding has acquired a majority shareholding in Paynet Group, a multi-institutional payments provider in East Africa. Interswitch said with this development, Paynet’s existing shareholders will become shareholders of the Interswitch Group.
The new combined network will connect over 100 financial institutions; a development Interswitch said has created an unrivalled payment infrastructure across East and West Africa. Both partners see the agreement as an acceleration of individual company’s expansion plans.
Interswitch in a statement said the deal is also in line with its strategic objective of becoming the truly pan-African electronic transactions business.
Objectives of the new company include creation of 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.
Mitchell Elegbe, Group Managing Director and Chief Executive Officer of Interswitch, 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 positions 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.”
Elegbe also announced that Bernard Matthewman, current chief executive officer (CEO) of Paynet, will retain his position in the company.
“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,” said Elegbe.
