Net 1 UEPS Technologies (Net1), an alternative payment systems provider, has acquired a 25% interest in Nigerian consumer finance company One Credit.
Under the deal, the Nigerian firm – which offers credit to unbanked and salaried Nigerian consumers- will receive with a credit facility of up to $10m in the form of convertible equity-linked loan notes from Net1.
By acquiring a stake, the Net1 will be able to actively participate in the formulation and execution of the One Credit business plan, including its delivery platforms.
The deal will also allow One Credit to leverage Net1’s solutions to enhance its credit risk management and expand the current product offering while growing its market share.
Net1 chairman and CEO Serge Belamant said: "The Nigerian consumer finance market, which is one of the fastest growing industries in the world, presents a unique opportunity to showcase the adaptability, scalability and robustness of our technologies.
"Our mobile virtual card and variable PIN products are particularly well suited to One Credit’s requirements and we look forward to the successful deployment of our solutions by an experienced management team that has an in-depth understanding of the Nigerian market."