Net1, a leading provider of payment solutions and transaction processing services, has partnered with Zapper to launch a new African focused venture.
Net1 describes Zapper as the leading South African quick response (QR) code company, with more than a million customers. Quick response codes, which are widely used in China by companies such as Tencent’s WeChat and Alibaba’s Alipay, use square patterns to facilitate mobile transactions.
Net1 and Zapper will come together to launch ZappGroup Africa, an initiative that will deploy a white-label QR payment product across the continent. Net1 revealed it had purchased a 50 percent state in a company called V2 for $5 million. Net1 said It will also invest another $5 million, which will serve as working capital to operate the entity.
V2, which would licence both Zapper’s QR payment technology and Net1’s products, owns 67% of ZappGroup Africa, while Zapper owns the balance. ZappGroup Africa has an exclusive licence for Zapper’s QR technology in Nigeria, Ghana, Kenya and Tanzania.
Net1’s CEO, Herman Kotze said “we intend to change the face of payment across Africa through innovative payment solutions. Traditional banks have struggled to service the unbanked population due to limited infrastructure and the high cost of providing last mile connectivity”.
Kotze added that “by leveraging Net1’s existing technologies together with Zapper’s mobile solutions, we can address the needs of 70 percent of Africa’s population currently underserved by financial institutions”.
Zapper currently operates in South Africa, the United Kingdom and the United States.