Multichoice, in an effort to diversify its struggling businesses, is entering the payments arena with a new venture.
The company has unveiled plans to launch an integrated payments platform called “Moment” in partnership with Rapyd, a B2B payment processing platform, and General Catalyst, a venture capital firm specializing in early-stage investments.
The primary objective of the platform is to provide businesses across Africa with a robust payment infrastructure, facilitating easier, faster, and more cost-effective collection and disbursement of funds, catering to the diverse preferences of their buyers and suppliers.
What MultiChoice “Moment” Aims to Achieve
Moreover, Moment aims to empower consumers by offering them smarter spending and savings options, with the ultimate goal of revolutionizing the African payments landscape and enhancing the accessibility and reliability of digital payments for domestic, cross-border, and global transactions.
However, Multichoice’s foray into the payments sector didn’t inspire confidence among shareholders, as the company’s stock experienced a nearly 2% decline by the end of the trading day.
This decline potentially reflects the doubts investors have about Multichoice’s ability to compete in an already fiercely competitive payments market.
Words From The Group CEO
Calvo Mawela, the CEO of Multichoice Group, expressed enthusiasm about the partnership with Rapyd and General Catalyst, highlighting the importance of creating an accessible and dependable payment platform for small businesses and millions of consumers across Africa. Mawela emphasized that this investment aligns with Multichoice’s overarching strategy to expand its ecosystem by venturing into complementary industries that offer scalable services supported by advanced technology.
Multichoice, a prominent player in processing payments from 22 million households across 50 African countries every month, believes that Moment will play a crucial role in their ecosystem expansion plans and contribute to their long-term growth.
Multichoice’s move into the payments sector appears to signal a shift away from its ailing cable television and streaming endeavors, stepping into a market currently dominated by industry giants such as Flutterwave, Paystack, Chipper Cash, and MFS Africa.
The success or failure of this strategic maneuver will determine whether it breathes new life into the company or merely serves as a desperate attempt in its final throes.
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