South Africa’s tech ecosystem continues to make significant strides on the global stage, as revealed in a major R1 billion deal in the fintech sector. JSE-listed technology group Araxi Limited has agreed to acquire an 80 % stake in the payments platform Pay@ Group in a transaction valued at R1 billion, comprising R200 million in cash and R800 million in senior debt.

Pay@, founded in 2007, is one of the country’s most scalable payment services providers. It operates an extensive network encompassing more than 9’000 retail locations, over 150’000 mobile point-of-sale endpoints and 15 digital payment platforms serving banks, telecoms and fintech firms across South Africa and the Southern African region.

What makes this transaction particularly noteworthy isn’t just its size, but what it represents for South African tech. With 40 % of Pay@ previously held by a US private equity firm, the acquisition will ensure that the company becomes fully South African-owned, a rare achievement in a sector where foreign capital has played a dominant role.

Local ownership in tech goes beyond national pride. When companies are domestically controlled, profits are more likely to be reinvested into the local economy, currency exposure risks are reduced, and strategic decisions can be rooted in an understanding of regional needs. For South Africa’s burgeoning tech space, this deal signals confidence in homegrown capabilities and demonstrates that local companies can compete and win on the global fintech stage.

The Pay@ acquisition also strengthens Araxi’s payments offering, positioning it to deliver a broader, more innovative suite of solutions to enterprise customers and potentially expand further into international markets.

Come and meet Araxi’s head of AI, Archana Arakkal, in discussion with Africa head of OpenAI, Emmaniel Lubanzadio, at our next Open Letter Joburg event in April 2026.

This news was first featured in our Feb ‘26 newsletter edition on financial inclusion through smart HR for domestic workers.

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