South Africa’s Competition Commission has approved the R1 billion acquisition of major payment platform Pay@ by the fintech group Araxi. The transaction, facilitated through Araxi’s African Resonance subsidiary, involves the acquisition of Pay@ and its cross-border expansion arm, IPH, without conditions. The Commission determined that the deal is unlikely to substantially diminish competition in any relevant market.
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The acquisition marks a significant shift to 100% South African ownership for Pay@. Previously, 40% of the company was held by an unnamed US private equity firm, with the remaining 60% owned by management and local private investors. Araxi, which rebranded from Capital Appreciation in October 2025, is acquiring an 80% stake in the entity.
The total R1 billion investment is funded by R200 million in cash and R800 million in senior debt. From this total, R975 million is allocated to Pay@, with R25 million directed toward IPH. Araxi noted that local reinvestment of profits and a simplified shareholder base will help mitigate the negative effects of currency volatility.
Founded in 2007, Stellenbosch-based Pay@ has become a critical aggregator in the South African payment landscape. Key metrics of its operations include:
- Annual Processing: The platform processes over R60 billion annually for its clients.
- Client Base: It handles payments for thousands of entities, including the SABC, municipalities, banks, and insurance companies.
- Network Reach: Pay@ manages the largest independent network of processing channels in South Africa, including 150,000 mobile POS endpoints and 9,000 retail locations.
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Araxi aims to integrate Pay@ into its existing portfolio of technology platforms, which includes the cloud and AI business Synthesis and the payment-as-a-service provider Dashpay. The group targets cash-generative companies with enterprise-level clients and innovative technologies that possess cross-border growth potential.
While Pay@ currently operates in South Africa and Namibia, IPH provides services in Botswana and Zimbabwe. Following the acquisition, the Pay@ management team, including CEO Andrew Hardie and COO Barry Williams, is expected to remain on board to help Araxi expand the platform’s geographic reach and enhance its service offerings with new, diversified features.
