South African payment facilitator, PayGate has received R100-million in investment from Direct Pay Online (DPO) Group. The investment sees PayGate merging under DPO.
The merger will allow both companies to further spread across Africa.
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According to the managing director of PayGate, Peter Harvey, nothing in the company will be affected by the merger. There will be no change in SA staff or management.
“What happens to PayGate? Nothing bad; everything good. There is no change to the management. There is no change to the staff, in fact, the team will grow,” he says.
Harvey will become the CEO of DPO in SA and join the board of DPO, while co-founder David Bukes will become the global CTO of DPO Group.
When asked about expansion and new products, the CEO of DPO, Eran Feinstein, said the group would look at taking mobile money across Africa. They will also look into Blockchain technologies.
The merger will see the companies extending their reach into Africa, more specifically, East, West, and Sub-Saharan Africa, as well as establishing offices in each country.
PayGate was founded in 1999. In 2012 it had 1000 merchants and grew to 10 000 in 2016.
The full announcement can be viewed below.