Kenya’s multi-institutional payments provider, Paynet Group has agreed to merge with Interswitch Transnational Holding to create the biggest payment infrastructure and ensure an easier cross-border payment delivery service across the East and West African region.
The deal will see Interswitch acquire majority shareholdings of Paynet while shareholders of the Kenyan financial service will take up shares in Interswitch.
The consolidation of the two companies will see the creation of a single financial network connecting over one hundred financial institutions in the two regions, fostering the fast-growing East-West Africa regional trade.
“The new business will provide comprehensive solutions for regional and international businesses looking to take advantage of growth opportunities in Africa,” Elegbe said.
Interswitch Group Managing Director and CEO, Mitchell Elegbe said the partnership will significantly expand and position Interswitch’s business uniquely in the region’s market.
Although the deal is still subject to regulatory approvals, Paynet CEO, Bernard Matthewman is expected to retain his position as the
company’s East Africa head since Interswitch intends to leverage on the existing strength of Paynet’s management team in providing tailored payment solution for the African market.
Matthewman said Interswitch’s existing presence in Uganda provides the company with additional strength to operate and grow in the East African region.