Payment solutions and transaction processing services company, Net1 UEPS Technologies, announced that it has acquired a 25% interest in Nigeria's leading consumer lender, One Credit.
In a statement Net1 noted that has agreed to provide One Credit with a credit facility of up to $10 million in the form of convertible equity-linked loan notes.
Also by acquiring a minority stake, Net1 will be able to actively participate in the formulation and execution of the One Credit business plan, including its delivery platforms, reads the statement.
One Credit, a company focused on providing credit to the unbanked, was launched three years ago to meet the needs of the average salaried Nigerian consumers with limited access to formal credit.
Net1 said it plans to assist One Credit to grow its market share through the provision of its financial technology products and services, which have been designed to address the biggest challenge facing Nigerian financial institutions -- the ability to provide seamless and cashless services, according to the statement.
In addition, Net1's solutions are expected to enhance One Credit's credit risk management and expand the current product offering to customers.
"We are very excited to enter Africa's largest economy and most populous country with One Credit as our partner," said Dr. Serge Belamant, chairman and CEO of Net1.
"The Nigerian consumer finance market, which is one of the fastest growing industries in the world, presents a unique opportunity to showcase the adaptability, scalability and robustness of our technologies. Our mobile virtual card and variable PIN products are particularly well suited to One Credit's requirements and we look forward to the successful deployment of our solutions by an experienced management team that has an in-depth understanding of the Nigerian market," he stated.
Chijioke Dozie, co-founder and CEO of One Credit commented, "We are delighted to welcome Net1 as an investor and financial technology provider."
"The business opportunities in the Nigerian consumer finance market are immense as less than 10% of Nigerians have ever been able to apply for a loan due to the lack of financial inclusion. Net1's expertise, technology and investment will enable us to rapidly grow our market share in this underserved and dynamic market," Dozie said.
Meanwhile, last month Net 1 announced its withdrawal from the South African Social Security Agency (SASSA) tender process for a five-year, R10 billion contract for the payment of social grants.
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