South African fintech Peach Payments acquires software maker Operativa
TLDR
- South African digital payments provider Peach Payments acquires customer software development firm Operativa in its first acquisition following a $31 million funding round led by Apis Growth Fund II.
- Peach Payments, founded in 2012 in Cape Town, offers tools for businesses to handle payments on web and mobile platforms, positioning itself as the second-largest online payment gateway in South Africa and operating in Kenya and Mauritius.
- Operativa, collaborating with Peach Payments since 2022 on payment systems for the fintech's expansion, sees its team fully integrated into Peach Payments through this acquisition.
South African digital payments provider, Peach Payments, has acquired the customer software development firm Operativa. This marks its first acquisition since closing a $31 million funding round led by the Apis Growth Fund II last year.
Founded in Cape Town in 2012, Peach Payments offers a comprehensive toolkit to help businesses accept, manage, and disburse payments through web and mobile platforms. It reportedly is the second-largest online payment gateway in South Africa and has expanded to Kenya and Mauritius.
Since 2022, Operativa has collaborated with Peach Payments, building and maintaining various payment systems and solutions facilitating the fintech's rapid expansion. The acquisition will integrate the full Operativa team into Peach Payments.
Key Takeaways
The informal business sector in Africa offers a lot of promise for startups looking to digitize B2B payment flows. The cash-dominated space is rife with late payments and stunts the growth of commerce. Most merchants operate offline in an estimated $800 billion informal trade economy comprising more than 56 million micro, small, and medium-sized businesses. And a survey covering 3,500 companies across 6 countries found that 23% of small businesses experience delayed payments. This explains why merchant acquisition by fintechs like Peach Payments is proving to be Africa's “new” scramble for payment services.
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