Promoting financial inclusion
The average journey time for a South African to the closest ATM is 22 minutes. On Friday in peri-urban areas the waiting time for customers at an ATM can be as long as 60 minutes – and even longer in the bank branches.
As a leading South African payments company, Paycorp is providing the financial infrastructure to address this demand. Paycorp provides consumers with Visa-certified pre-paid card solutions and retailers with debit and credit card payment terminals – and maintains a fleet of ATMs in South Africa and Namibia. It is a trusted partner of major banks, including ABSA and Standard Bank. The company has around 4,800 ATMs and processes more than a quarter of a million transactions every day, boosting financial inclusion, something that the South African government supports strongly.
Actis’ investment in Paycorp in August 2013 was the fifth investment in the high-growth payments space in three years, building on our payment processing business across Africa and the Middle East, with EMPH. In June 2014, Paycorp acquired the bill payments business SaiCom Group, and in January 2015 took a majority stake in Tutuka, one of the largest prepaid card issuers in South Africa.
As modern retail outlets replace informal trading in South Africa and the rest of the continent, there is a growing need for electronic payment channels that are easily and cheaply available to customers. Working with Paycorp and Steve Kark – who founded the business – Actis is serving this demand.
In addition to consolidating its market leadership of the business in South Africa, Paycorp’s management team is keen to expand the product across Southern and Eastern Africa through a combination of organic expansion and acquisition.