The management of Interswitch Transnational Holding is partnering with Paynet Group, a company based in Kenya with operations in many East African companies. The deal enables Interswitch to acquire majority shares of Paynet Group with existing shareholders of Paynet automatically becoming shareholders of the Interswitch Group. Bernard Matthewman, chief executive officer, CEO, Paynet, retains his position as CEO of the new entity.

Mitchell Elegbe, group managing director and chief executive officer of Interswitch, notes that the partnership is necessary to build a successful payments business that customers desire. “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,” he said.

Bernard Matthewman, CEO of Paynet, said, “The payments market in East Africa is moving rapidly into an era where specific products are required for sectors like transport, health, government and county payments as well as the move towards secure Internet based payments. Paynet has been looking for a partner that has both products and experience in these areas so we can rapidly deliver them in the most efficient manner. Interswitch has the most comprehensive range of products of any provider we have seen in an emerging market and this alongside their existing presence in Uganda provides us with additional strength as we continue to grow in East Africa.”

The merger, which comes at a time when both governments and private institutions across Africa are looking to cashless solutions to drive business efficiency, makes both companies to presently operate in nine African countries to create unrivalled payment infrastructure across East and West Africa.