The Direct Pay Online (DPO) Group plans to create the leading payments service provider in South Africa following its acquisition of the Virtual Card Services (VCS) Group, PayThru and PayGate.
The acquisition of VCS South Africa follows the purchase VCS Namibia and VCS Botswana to complete DPO’s ownership fo the VCS Group.
DPO plans to merge VCS SA and PayThru, which it acquired last month, with PayGate to create the leading Payments Service Provider in South Africa.
DPO Group CEO Eran Feinstein comments: “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.”
VCS has over 20 years of experience in developing and implementing credit, debit and smart card processing systems for major card issuers.
It 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.
Offer Gat, DPO Group chairman, says: “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.”
Last year, DPO began its southern African expansion by merging with PayGate, a n 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 VS subsidiaries in both countries. Last month, DPO announced the acquisition of PayThru South Africa.