In a significant consolidation of the Southern African fintech space, JSE-listed Araxi Limited (formerly Capital Appreciation Limited) has agreed to acquire an 80% stake in Pay@ Group for R1bn ($62.3m).

The deal, executed through Araxi’s subsidiary African Resonance, marks a pivot toward creating an end-to-end payments giant that bridges the gap between physical retail networks and digital cloud-based infrastructure.

The Deal at a Glance

• Acquirer: Araxi Limited (via African Resonance).
• Target: Pay@ Group (80% stake) and International Payment Holdings Limited (IPHL).
• Price Tag: R1bn ($62.3m).
• Funding Structure: R200m from cash reserves; R800m in committed senior debt.
• Strategic Shift: The acquisition “repatriates” Pay@, buying out a 40% stake previously held by a US private equity firm to ensure 100% South African ownership.

Why Pay@? The “Boring” Fintech That Actually Makes Money

While many fintech headlines focus on high-burn startups, Pay@ is a veteran. Founded in 2007 in Stellenbosch by Johan Koornhof, the company has spent nearly two decades building the “plumbing” for South Africa’s bill payment ecosystem.

It isn’t just an app; it’s a massive B2B logistical network and bill payment aggregator. Pay@ operates:

• 9,000+ retail locations for physical payments.
• 150,000+ mobile POS endpoints.
• 15 digital platforms serving banks, telcos, and utility providers.

Over the last 12 months, the company processed more than R60bn ($3.7bn) in transaction value. Unlike many growth-at-all-costs players, Pay@ has no third-party debt and boasts a 22% compound annual revenue growth rate over the last three years.

Key Financials (FY ending Feb 2025)

The Strategy: Cloud Meets the Cash Counter

Araxi’s current portfolio (which includes Dashpay and Synthesis) is heavy on high-tech software — think AI, cloud integration, and advanced POS hardware. Pay@ brings the distribution.

By merging Araxi’s technical stack with Pay@’s established network of “last-mile” payment points, the group is positioning itself to dominate the SADC region (South African Development Community). Pay@ already has operational footprints in Namibia, Botswana, Zimbabwe, Eswatini, and Lesotho.

“This transaction unites two leading participants operating in different areas of the South African payments ecosystem,” says Araxi CE Bradley Sacks. “By leveraging our complementary strengths, we will deliver a powerful, end-to-end fintech proposition.”

The “On-shoring” Angle

A notable sub-plot of the deal is the simplification of Pay@’s shareholder base. By buying out the US-based private equity interest, Araxi is betting on the long-term stability of the South African market. This move reduces exposure to currency volatility for Pay@ and ensures that profits are reinvested locally — a narrative that resonates well with local regulators and shareholders.

What’s Next?

The acquisition is classified as a Category 1 transaction, meaning it still requires the rubber stamp from Araxi shareholders. An investor presentation is slated for February 19, 2026, where the management teams will likely face questions on how they plan to integrate Araxi’s “agentic AI” implementations into Pay@’s legacy bill-payment infrastructure.

For the South African fintech scene, this isn’t just another exit; it’s a sign that the market is maturing, with established local players now large enough to swallow profitable peers rather than waiting for an international suitor to come knocking.