The reason why south African BaaS provider (Ukheshe) acquired local fintech (Oltio) is a proof revealing the progressive and rapid growth of fintech compared to the mainstream banking. Before going into details about the reasons, let’s give precise description about these two organizations.
Ukheshe is a Johannesburg-based banking-as-a-service (Baas) provider. The organization is a technology platform that helps banks & telcos provide SMME’s affordable digital Banking & Payment services.
Oltio is a startup that pioneered and patented several mobile payments and banking solutions, including an authentication technology. Oltio supports Masterpass, Mastercard’s QR code payment service in South Africa.
Fintech is fast becoming indispensable as it provides financial solutions in all sectors generally, and for this reason, the need for Ukheshe to acquire Oltio is necessary, although, while under its new owner, Oltio’s Masterpass platform will continue to operate as normal.
Clayton Hayward, Ukheshe’s CEO said,
Digital-first solutions for consumers remain a key priority, also this deal will allow Ukheshe to continue providing fintechs, telcos and banks with payment solutions”.
His aim is to establish a service that will help boost South Africa’s financial inclusion rates.
Why Ukheshe acquired Oltio. The South African BaaS provider (Ukheshe) understands that acquiring the local fintech (Oltio) will be a great move as it will express its commitment to continue providing fintechs, telcos and banks with payment solutions.
For Mastercard, the deal helps it to build momentum around its QR code solution in South Africa. It is very clear how this deal is favoring all parties as they team up to provide necessary digital financial solution to increase financial inclusion in South Africa.
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