South African fintech Ukheshe secures full ownership of EFTCorp in another acquisition

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January 18, 2024
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2 min read
Ukheshe
  • Ukheshe, a South African fintech company, has acquired the entire stake in EFT Corporation (EFTCorp), a payment solutions provider, from Loita Transaction Services (LXS) with the support of Development Partners International (DPI). 
  • This news comes after Ukheshe acquired a South African startup, Oltio — the Masterpass developer — from Mastercard in 2020.
  • Following this, Ukheshe and EFTCorp will continue to operate independently without losing their brand identities. Also, EFTCorp's management and CEO, Stephen Enderby, will retain their involvement.

Ukheshe Technologies, founded in 2018, is a financial services enabler that works with banks, telcos, and financial service providers to offer digital payment solutions to their customers. 

In late 2022, Ukheshe secured an undisclosed Series A funding round for international expansion. The company says it has offices in South Africa, London, Mauritius, Kenya, India, and the United Arab Emirates.

The South African fintech has been on the market for six years, while EFTCorp has been around for 23 years. EFTCorp serves approximately 35 African markets and provides end-to-end payment solutions to over 100 banks.

According to a statement, Ukheshe’s expertise in digital wallets, digital onboarding, KYC, and several payment channels will open up new opportunities for EFTCorp's traditional clients, who rely on dependable electronic payment processing systems. 

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The partnership with Ukheshe ensures that EFTCorp's clients remain engaged with a trusted brand while accessing a broader range of cutting-edge digital services. 

Following the acquisition, EFTCorp's CEO stated that he had been looking for a partner to help support and grow the company's digital strategy.

Ukheshe's acquisition of EFTCorp is strategic to bring together the expertise of both companies and their products in serving the African market. 

"The market is ripe for consolidation and disruption, Ukheshe’s co-founder and CEO, Clayton Hayward, noted.

In South Africa, where the digital payments market is expected to reach $21.81 billion in 2024 and $32.06 billion by 2027, both companies have demonstrated their ability to contribute to the growing digital payment landscape.  

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In 2023, Ukheshe rebranded its previously acquired Masterpass as Scan to Pay to expand QR code transactions in the region. Additionally, the Scan to Pay platform now accepts cryptocurrency payments.

In June 2022, Ukheshe launched the Tap-to-Pay phone payment solution that doesn't require a certificate for merchants and service providers to accept tap-on-phone payments.

Ukheshe also partnered with Diamond Trust Bank (DTB) in August 2023 to offer a Banking-as-a-service (BaaS) platform in East Africa. 

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