Jaco Jonker, CEO of bidorbuy.co.za, says that the acquisition is a natural progression for the company. "Online payments are critical in ecommerce and bidorbuy is committed to growing all aspects of online commerce in South Africa. Online payment solutions are an integral part of any transactional based website," he adds. "PayFast complements the bidorbuy offering by providing a valuable tool for online merchants."
Its flagship product is a patented EFT system, which gives merchants the ability to accept EFT payments with the speed and ease of credit cards, but without the risks of charge backs and its revenue model is based on a percentage of transaction. Online merchants only pay on a per transaction basis and there are no setup or subscription fees.
According to MD of PayFast, Jonathan Smit, about 4000 merchants are currently making use of this online payment service. "This is just the beginning. We feel that the investment from bidorbuy will not only help us grow our business, but will further boost ecommerce in South Africa, giving online merchants the tools they need to make a success of their businesses," says Smit.
The acquisition will give the two companies the opportunity to drive the common goal of growing the ecommerce industry in South Africa by making it easier and safer for buyers and sellers to transact online. It will also allow PayFast to expand into other African markets in conjunction with the auction site's African expansion plans.
