Direct Pay Online Group acquires Virtual Card Services (VCS) South Africa
Both VCS SA and PayThru will be merged with PayGate to create the leading Payments Service Provide (PSP) in South Africa.
Direct Pay Online Group (DPO) has today announced the acquisition of Virtual Card Services (VCS) South Africa. This marks the completion of DPO’s purchase of VCS Group, post the earlier acquisition of VCS Namibia and VCS Botswana. Furthermore this acquisition further bolsters DPO’s leading position in Southern Africa post its previous acquisitions of PayThru and PayGate.
VCS has over 20 years of experience in developing and implementing credit, debit and smart card processing systems for major card issuers in South Africa. DPO plans to merge both VCS SA and PayThru, which it acquired last month, with PayGate, to create the leading Payments Service Provider in South Africa.
Direct Pay Online Group CEO, Eran Feinstein said: “We are excited to finally have VCS South Africa on board. By merging VCS & 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.”
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 organizations 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.
Commenting on the investment, 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.”
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.