SA Fintech Start-Up Adumo Has Acquired Payments Solutions Start-Up SwitchPay
SA Fintech Start-Up Adumo Has Acquired Payments Solutions Start-Up SwitchPay. South African fintech startup Adumo has announced that it has acquired payments solutions startup SwitchPay. The companies did not disclose the value of the deal.
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. 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.” said Kent on the company’s website.
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.
Adumo announced earlier last year that it had secured funding of R225 million. With this investment Adumo sought to grow and to increase its brand value and presence throughout its markets. Through acquiring SwitchPay it is adding to the list of companies it has, which will make it a formidable fintech conglomerate. It will be creating a company that will be able to service customers at a larger scale as it will gain more resources as it grows.
Justin Hawkins, CEO of SwitchPay said on the company’s website, “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.”
