South African fintech company Peach Payments has officially entered Francophone Africa through the acquisition of West African digital payments platform PayDunya. This strategic move allows Peach Payments to expand its footprint in the West African Economic and Monetary Union (UEMOA) region, with further plans to reach the Central African Economic and Monetary Community (CEMAC). By integrating PayDunya’s operations, Peach Payments aims to bolster digital payment solutions across key markets in Africa.

Expansion Strategy and Market Reach

Headquartered in Cape Town, Peach Payments has been actively scaling its presence across the continent, driven by its mission to create a seamless digital payment ecosystem. The acquisition of PayDunya extends its services into six key West African markets—Senegal, Côte d’Ivoire, Benin, Burkina Faso, Togo, and Mali—where PayDunya has established a strong customer base. With this expansion, Peach Payments is now positioned to serve a potential market of over 450 million people across 12 countries.

About PayDunya and Its Growth

Founded in 2015 and based in Dakar, PayDunya has grown into a leading digital payments provider, facilitating transactions for thousands of businesses. The company processes 70,000 transactions daily and serves over 4,000 business clients, including notable enterprises such as Jeune Afrique, VFS Global, and Dubai Port Dakar. Despite beginning with just EUR 20,000 in bootstrap funding, PayDunya has remained profitable, demonstrating its resilience and steady revenue growth.

Peach Payments’ Expansion Efforts

The acquisition follows Peach Payments’ successful USD 30 million Series A funding round in late 2023, led by Apis Growth Fund II. This marks the company’s third strategic acquisition since the funding round, following its purchase of Exipay’s in-store payments technology and software development firm Operativa. By integrating these technologies and expanding geographically, Peach Payments is reinforcing its role as a leading digital payment provider in Africa.

Industry Perspective and Future Outlook

Peach Payments CEO Rahul Jain emphasized that the acquisition aligns with the company’s broader vision of building a unified African payment ecosystem. He noted that PayDunya’s integration will unlock significant opportunities for businesses across the region, enabling seamless access to digital payments for millions of potential users. With growing smartphone penetration and increasing adoption of mobile money, the demand for efficient digital payment solutions in West Africa is expected to rise substantially.

Local Market Potential and Impact

PayDunya co-founder Aziz Yérima, who also serves as the president of Senegal’s fintech association SEN FINTECH, highlighted the vast opportunities in the region. He pointed out that the fintech sector in West Africa is still in its early stages, presenting enormous potential for growth in e-commerce and financial inclusion. The partnership with Peach Payments is expected to accelerate digital transformation in the region, making online payments more accessible and efficient for businesses and consumers alike.

The acquisition of PayDunya by Peach Payments marks a significant step in the company’s expansion strategy, reinforcing its ambition to build a pan-African digital payment infrastructure. With regulatory approvals expected in the coming months, the integration of PayDunya’s operations will enhance financial accessibility in Francophone Africa. As digital transactions continue to grow across the continent, Peach Payments is poised to play a key role in shaping the future of African fintech.