MultiChoice to digitize 90% of cash transactions in Africa
MultiChoice Group, the South African pay-TV operator with a widespread presence across Africa, has announced a strategic partnership with payments platform specialist Rapyd and venture capital firm General Catalyst to develop an integrated payment platform for the continent.
The joint venture, named Moment, aims to streamline MultiChoice’s annual processing of $3.5 billion and provide a payments infrastructure that caters to millions of small businesses in Africa. The ultimate objective is to transition 90% of cash transactions in Africa to digital payments.
This move has the potential to reshape the payment ecosystem in Africa and enhance the overall digital payment experience for businesses and consumers alike.
MultiChoice, founded in 1995 and headquartered in Randburg, South Africa, is renowned for its offerings in digital satellite television, digital terrestrial television, online services, over-the-top (OTT) content, and related video entertainment services.
The company operates under recognizable brands such as SuperSport, DStv, GOtv, M-Net, Showmax, and Irdeto.
The partnership with Rapyd and General Catalyst comes as MultiChoice faces intensifying competition from global streaming giants like Netflix, Amazon Prime Video, and Disney+. This heightened rivalry has resulted in a decline in subscribers and revenue, prompting MultiChoice to explore innovative solutions and adapt to the evolving market.
Earlier this year, MultiChoice joined forces with Comcast’s NBCUniversal and Sky to enhance its content offerings and leverage cutting-edge technology to cater to streaming customers across sub-Saharan Africa.
Given MultiChoice’s extensive experience in processing payments from subscribers across 50 African countries, this venture into integrated payments is a natural progression for the company.
Currently, MultiChoice partners with PayU, a renowned Netherlands-based payment service provider, to handle card payments from its subscribers. In Kenya, subscribers have the option to pay through their Mesa accounts and other convenient channels, while in Nigeria, popular payment methods include PayU, Interswitch Quickteller Mobile Application, and Quickteller API distributed through banks and fintech channels.
The new partnership with Rapyd and General Catalyst signifies MultiChoice’s ambition to become a payment aggregator, not only processing payments for its subscribers but also serving as a payment facilitator for other merchants.
Leveraging the payment infrastructure they have relied on for years, MultiChoice aims to position itself as the ultimate intermediary, facilitating seamless transactions and disrupting traditional middlemen in the payment ecosystem.
This transformative shift opens up exciting possibilities for MultiChoice’s internet business, capitalizing on its extensive subscriber base and deep understanding of subscriber preferences and payment habits.
The company’s robust presence across Africa provides a strong foundation for driving the transition to digital payments and further advancing financial inclusion on the continent.
As MultiChoice embarks on this new venture, the dynamics within the payment industry in Africa may undergo significant changes. While some existing payment partners may continue to enable this transition, others may find themselves becoming competitors as MultiChoice establishes itself as a formidable player in the payments landscape.
The company’s payment ambitions extend beyond its subscriber base, encompassing partnerships with other payment providers and telecom companies, including MPesa.
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