Paynet in merger with Pep Intermedius to expand the PesaPoint network

FEB 11,2014

Paynet, a full payments service provider for banks and mobile money companies in Kenya, Tanzania, Uganda, Rwanda and South Sudan has today announced a merger of its PesaPoint agent network with that of Pep Intermedius – to further grow the PesaPoint brand and expand its network.

Pep Intermedius, one of Kenya’s leading agent aggregators, has been running an exclusive chain of over 150 agent outlets offering mobile money and agency banking services –including agents’ outlets at all the 40 Nakumatt stores countrywide.

The merger now places the PesaPoint network among the largest mobile money and agent banking networks in Kenya with more than 1500 agent outlets, positioning it for strong multi-institutions partnership with banks, financial service providers and mobile money providers.

Currently, PesaPoint runs a multi-stakeholder ATM network that serves about 13 million customers from 32 financial institutions and two mobile money networks (M-PESA and Airtel Money). It also has 1350 existing PesaPoint Agent locations which vend airtime and card cash-out services.

Commenting on the merger, Bernard Matthewman, Paynet Group CEO said the merged agents network would take advantage of the huge growth and demand for financial services touch points and deliver to Kenyans ‘multiple products and services’ through a single agent network. “We have the technology to power innovations in POS, mobile and mPOS based agent services for banks, financial services providers and mobile money providers whilst Pep Intermedius manages one of the most advanced agency networks. Our merger with them will bring the right combination of expertise to build and manage the most successful multi-stakeholder agent network for PesaPoint in the country. There is significant potential for this business to grow rapidly both in terms of the number of locations as well as the range of financial service providers it serves,” he said.

Frederik Eijkman, CEO of Pep Intermedius-on his part- said the merger would be exciting news for the industry given the record of innovation that the PesaPoint brand has with banks and mobile money providers.   “PesaPoint has achieved a number of ‘firsts’ in the market. This is the spirit we continue with in the agent network where we see more innovations coming to the market in partnership with mobile money providers and banks,” he said.

Mr Eijkman said the new network would launch in the near future a ‘pioneering range of new transactions services’: “Like a financial supermarket we will bring the broadest possible range of services to consumers including mobile money, agency banking, bill payment, airtime sales, ticketing, lotteries and even micro insurance,” he said.

“Multiple services through one channel will bring more value to the individual agent or shop owner and  it will provide a one-stop shop for customers who for example need to do a number of transactions such as access to cash from cards or mobile money and pay bills or buy airtime.”  Mr Eijkman continued. “With the merger, the distribution of financial services will further enhance economic and social development. Paynet and Pep together with their agents are proud to be contributing to the financial inclusion agenda.”

Mr. Eijkman will head the new PesaPoint agent network. PesaPoint was the first independent ATM network in Kenya and connects customers to card services from various banks at low cost, provides card-less transactions for mobile money users, vends electronic airtime for all telecommunications networks and provides ATM bill payments and revenue collection service for multiple billers. More recently PesaPoint developed an agent network based initially on POS technology that runs in parallel with its pervasive ATM network.