In a move to expand its digital payment capabilities, Capitec has agreed to acquire 100% of South African fintech company Walletdoc Holdings in a deal valued at up to R400 million. The transaction underscores the bank’s strategy to reduce payment costs and enhance financial inclusion through technology.
Walletdoc, founded in 2015, offers a suite of payment services, including payment gateways, digital wallets, instant EFT, and in-app payment solutions for merchants. Capitec highlighted that Walletdoc’s culture of innovation and customer focus aligns well with its own values, making the fintech a strategic fit for its expanding digital ecosystem.
The acquisition consideration consists of an upfront cash payment of R300 million, subject to standard closing adjustments, and a deferred earn-out of R100 million tied to Capitec’s share price and the achievement of certain performance milestones over three years.
“Capitec believes in the power of innovative technology to deliver smart, seamless payment solutions that benefit both merchants and consumers,” the bank stated. “We see this acquisition as an important step in building a more inclusive and competitive payments ecosystem.”
Pending regulatory approval, the deal adds to Capitec’s growing portfolio of strategic acquisitions, which includes the 2019 purchase of Mercantile Bank — now Capitec Business Banking — and last year’s increased stake in international lender Avafin.
Newly appointed Capitec Group CEO Graham Lee also recently signalled the bank’s ambition to grow beyond South Africa, although specific plans have not yet been disclosed.
Market Sentiment
The market is likely to view this acquisition as a strategically sound investment in Capitec’s long-term digital and payments strategy. By integrating Walletdoc’s technology, Capitec stands to improve its merchant services, reduce third-party payment costs, and deepen its engagement in the fast-growing digital payments space. The tiered payment structure, with a significant portion tied to performance, signals disciplined capital allocation. However, investors may remain cautious until the deal demonstrates tangible synergies and revenue contributions. Overall, sentiment is positive, reflecting confidence in Capitec’s focused growth model and its consistent execution in expanding both its product set and addressable market.
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