South Africans in R1 billion buyout of foreign shareholders from major payment platform
South Africa’s Competition Commission announced the approval of the R1 billion acquisition of major payment platform Pay@ by South African fintech group Araxi, through its African Resonance arm.
Pay@ looks set to become 100% South African-owned, as the acquisition will see the 40% stake held by an unnamed US private equity firm transferred into South African hands.
Andrew Hardie, Pay@ CEO, told MyBroadband that the remaining 60% of the shares were held by a group of private local investors.
Pay@ handles payments for thousands of local entities, including the SABC, municipalities, banks, and insurance companies.
On Monday, the Commission announced the approval of the acquisition of an 80% stake by JSE-listed acquiring group Araxi. Its African Resonance subsidiary facilitated the deal.
“The Commission has approved the proposed transaction whereby African Resonance intends to acquire Pay@ and IPH, without conditions,” it said.
IPH is Pay@’s cross-border expansion arm, providing payment services only in Botswana and Zimbabwe, while Pay@ provides services in South Africa and Namibia.
The Commission added that the proposed transaction was “unlikely to substantially lessen or prevent competition in any relevant market.”
Araxi stated in February that the acquisition would mean Pay@’s profits will be reinvested locally, the negative effects of currency volatility will be reduced, and the shareholder base will be simplified.
Since launching in 2007, Pay@ has become a critical payment aggregator for South Africa, providing bill presentment and collection services for cash, card, mobile money, EFT and voucher payment methods.
Its reach spans several payment networks, including over 9,000 retail locations, as well as banks, telecommunications providers, and financial technology companies.
Pay@’s billing system is used by utility companies, insurers, municipalities and other service providers across South Africa.
While it had foreign shareholders, the Stellenbosch-founded Pay@ remained a major player in the South African payments landscape, processing over R60 billion annually for its customers.
Araxi said that Pay@ managed the largest network of independent payment processing channels in South Africa, including 150,000 mobile POS payment end-points.
It said that the acquisition of the Pay@ Group would significantly strengthen its payment capabilities, enabling the group to offer more competitive customer offers.
Portfolio of South African tech firms joined by Pay@
The Araxi Group hoped to add Pay@ to its portfolio technology platforms, including cloud and AI expert business Synthesis and payment-as-a-service Dashpay.
Araxi was formerly known as Capital Appreciation before rebranding in October 2025. It purchased Dashpay in 2017 and, in 2021, expanded its geographical presence to the Netherlands.
Araxi said it looked for companies with major enterprises or institutions as clients, rather than individual customers or businesses that are cash-generative.
“In addition, the Araxi Group seeks innovative technologies with significant growth potential that can easily cross regional and continental borders,” it said.
“The extent to which the prospective acquisition presents meaningful and near-term synergies, with its existing operating units, is also a consideration in Araxi’s decision.”
It will invest a total of R1 billion into the acquisition, funded by R200 million and R800 million in senior debt. Pay@ will receive R975 million, while the remaining R25 million will go to IPH.
Araxi explained that Pay@ had already achieved strong profitability while maintaining a high standard of client service, and that its offering complemented Araxi’s payment division.
The Pay@ management team is expected to continue working with Araxi to expand the Pay@ platform further following the acquisition.
Araxi’s plan for Pay@ is to expand its geographic reach and enhance its services with new, diversified features.
Pictured in article thumbnail: Bradly Sacks, chief executive officer of Araxi Limited.
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