Payment solutions provider Network International reports merchant wins in Africa

Payment solutions provider Network International reports merchant wins in Africa

It successfully launched direct-to-merchant services in Egypt, with the first small and medium-sized enterprises, SME merchants onboarded

The company, which operates across Africa and the Middle East, has seen strong underlying growth in payment transactions with an increase in merchant solutions growth acceleration vs pre-pandemic during Q4 2022.

It successfully launched direct-to-merchant services in Egypt, with the first small and medium-sized enterprises, SME merchants onboarded and transacting through Network’s point-of-sale terminals; figures include growth for DPO Group, acquired by Network International, in 2021, whose new capabilities continue to diversify merchant reach across sectors.

Nandan Mer, Group Chief Executive Officer, Network International

Merchant solutions growth

Africa, DPO Group

DPO saw Q4 TPV up 12% YoY or 25% in constant FX. Whilst growth in markets outside of South Africa remains strong, South Africa is experiencing challenging macro-economic conditions driven by an unreliable energy supply, high unemployment, and rising interest rates. This network saw continued growth in customers at DPO, with notable new wins in the period including Guess and Footgear in South Africa, alongside Forever Living and Jubilee Life Insurance in other African markets. DPO’s payment capabilities have been integrated with Skidata, a car parking systems and solutions provider operating across Africa, allowing car park operators in shopping malls and hotels to accept payments through DPO.

Similarly, DPO has partnered and integrated its systems with Amadeus, an online travel inventory management and booking platform, to enable more travel agents across Africa to accept online payments.

Egypt direct-to-merchant services now live

Network has launched direct-to-merchant payment services in Egypt following the approval of its Payment Facilitator and Payment Services License, with the first SME merchants onboarded and transacting through Network’s point-of-sale terminals.

Focus is on building out and training the local sales team, with a healthy merchant pipeline in place. As previously highlighted, direct-to-merchant services is a new revenue opportunity, which Network expects to build during 2023.

Strong momentum in merchant signings

New merchant signings reached record levels in 2022. Q4 saw significant wins across SME and key enterprise segments.

Issuer Solutions business line review

Network secured five new financial institutions during Q4, including Pivot Bank in East Africa for the issuance of debit cards.

Several contracts were also extended, including a five-year renewal with Dubai Financial Market and two contracts in Egypt, extending Network’s relationship with QNB Al-Ahli for a further ten years, to provide one of the region’s largest private banks with processing services; and with Attijariwafa Bank Egypt for a further three years.

Issuer Solutions full year revenue growth of 12% YoY saw supportive dynamics across new business signings, credentials hosted and transaction levels. Whilst Q4 revenue was flat YoY, growth in the period was impacted by a number of unrelated factors, the timing of which coalesced in the final quarter. Some Financial institutions chose not to renew particular services or card portfolios, alongside the presence of non-recurring, or one-off revenue streams in the prior year. Whilst this is typical throughout the year, Network also experienced the delayed signing of some new business revenue streams and longer lead times to onboard signed customers towards the end of the year, which would normally have offset the factors mentioned above.

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