Capitec to buy fintech Walletdoc in R400-million deal — Capitec’s head office in Stellenbosch. Image: Capitec

Capitec is moving deeper into South Africa’s fast-growing payments ecosystem with a R400-million acquisition of fintech player Walletdoc, a move that signals the Stellenbosch-based bank’s intention to broaden its reach in digital commerce and lower the cost of transacting.

The bank said on Monday that it has signed a binding agreement to acquire 100% of Walletdoc Holdings, the parent company of payments gateway specialist Walletdoc. The deal, concluded on 5 December and still subject to regulatory approval, will give Capitec full ownership of the business, founded in 2015 and now used by merchants nationwide.

Walletdoc provides a modern, scalable payments stack offering online and in-app payments, digital wallets, Instant EFT, payment links and real-time payouts – capabilities that dovetail directly with Capitec’s multi-year push into merchant services and digital payments. The bank described Walletdoc’s culture of “innovation, efficiency and client focus” as closely aligned with its own.

Capitec will pay R300-million in cash upfront, with a further R100-million deferred over three years as an earn-out dependent on performance milestones and linked to the Capitec share price.

The acquisition marks another step in Capitec’s bid to expand beyond core retail banking into adjacent financial services categories – particularly low-cost, high-volume payments infrastructure. In recent years, the bank has invested heavily in its digital channels, business banking offerings and merchant solutions amid growing competition.

Capitec said the deal supports its ambition to “lower the cost of payments, broaden access to digital financial services and promote financial inclusion” in South Africa.

Goal

Its goal is to build a more inclusive and competitive payments ecosystem, the bank said, adding that emerging technologies will continue to play a central role in delivering “smart, seamless payment solutions” across its customer base.