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Direct Pay Online Group's latest buy tips the scales

By , Portals editor
South Africa , 17 Aug 2017

Direct Pay Online Group's latest buy tips the scales

Direct Pay Online Group (DPO) has announced the acquisition of Virtual Card Services (VCS) South Africa for an undisclosed amount.

Last year, Direct Pay Online began its Southern African expansion by merging with PayGate (Pty) Ltd, a leading online payments processor in South Africa with over 15 years of experience and gateway integration to banks in 24 African markets. In March of this year, the group expanded into Botswana and Namibia with the acquisition of Virtual Card Services subsidiaries in both countries. Last month, DPO announced the acquisition of PayThru South Africa.

The latest acquisition marks the completion of DPO's purchase of VCS Group, post the earlier acquisition of VCS Namibia and VCS Botswana, and creates what the company believes will a dominant force in the payment services space in South Africa.

It also takes the company a step closer to its ambition to spearhead the delivery of a single payment solution across Africa.

DPO believes the acquisition strengthens its position in Southern Africa post its previous acquisitions of PayThru and PayGate.

The plan is to merge both VCS SA and PayThru, which it acquired last month, with PayGate to create a formidable payments service provider in South Africa.

DPO Group CEO, Eran Feinstein said: "We are excited to finally have VCS South Africa on board. By merging VCS and PayThru South Africa with PayGate, we will be able to position ourselves as the largest PSP in Africa serving over 20,000 merchants. With every acquisition we make, our merchants across the continent benefit by receiving an unparalleled offering of services and geographical exposure. I believe we are well on our way to providing one payment solution across Africa."

A statement issued by DPO reads, "Virtual Card Services was established in 1996 to offer a solution to the mail order market that found conventional methods of securing large volumes of credit card payments cumbersome and costly.

The business rapidly grew by expanding its scope of services to organisations requiring automated, high volume and secure credit card payment processing. Today, VCS South Africa serves thousands of merchants across South Africa including University of Johannesburg, Club Med, Capetown Cycle Tour, Tourvest, Getwine and Thompsons travel, all of whom will continue to unmatched services and dedicated support."

Offer Gat, the DPO Group Chairman said: "We have been in talks with VCS South Africa regarding the acquisition for quite some time. The late CEO, Gordon Ashby, was instrumental to this deal and it is unfortunate that he is not present to witness its fulfilment. We hope to continue the legacy he built."

Peter Harvey, MD of DPO SA, said "Our strategy and approach is to incorporate in every country in which we do business in Africa. We already have 'boots on the ground' in Kenya, Tanzania, Uganda, Ethiopia, Rwanda, Malawi, Zambia, Zimbabwe, Botswana, Namibia and South Africa."

"Our group Africa HQ is in Nairobi and our SADEC HQ is in Cape Town. We will be opening our West Africa regional offices before the end of this year," he added.

The game-plan, says Harvey, is to provide a truly pan-African payment solution to merchants wanting to do business in and across the continent.

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