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Search ResultsFanisi Venture Capital Invest in Paystream Payment Platform
Fanisi Venture Capital Fund S.C.A., SICAV SIF has invested USD1m in Paystream Limited, making it the second investment by the newly launched SME-focused fund.
Paystream provides a central financial transaction processing platform for card and cash transactions, and the retailers’ point of sale (PoS) terminals that use wireless telecommunication networks, displacing the slow, unreliable and expensive dial up lines.
Like PayPoint in the UK, Paystream provides merchants with the ability to accept cash and card payments for goods or other value added services such as topping up prepaid mobile phones and payment of utility bills. More value added services will be progressively launched through Paystream’s platform, enabling merchants to generate additional revenue through commissions. Paystream will be expanding the reach of card-based transaction processing platforms in Kenya, and ultimately throughout Africa, by linking up with merchants whose operations are not just in major cities, but also in peri-urban and rural areas covered by the GSM networks.
Paystream was incorporated in 2008, as a Kenyan subsidiary of the Business Phone Ltd., a UK company which focuses on packaging and distributing turnkey mobile financial services in developing African markets. Paystream’s entry into the Kenyan market will ensure that merchants can accept cash and card-based payments, including Visa, Mastercard, and debit cards issued by banks in the Kenyan market, as well as closed loop payment cards for select clients. The transactions will be processed live, through the national switches, and the four mobile carriers in Kenya will ensure that communications between merchants, acquirers and the banks happens seamlessly through this financial ecosystem.
Mr. Ayisi Makatiani, CEO and Managing Partner of Fanisi Capital, notes that the investment in Pastream fits within the fund’s strategy of investing in startups and small and growing businesses within East Africa. “Paystream is offering a unique and innovative new product that will transform the way business is transacted in East Africa and beyond,” says Mr. Makatiani.
The Business Phone’s CEO, Mr. Graham Gilmour, is very excited about this investment. “Paystream’s business model confirms my long-held view that African markets are ripe for payment systems that are ubiquitous, secure and easy to deploy. Kenya will be a springboard for Paystream’s foray into other African markets. The innovations that technology is brinigng to African markets will transform the way business is done on this continent. We have strong allies in our investors, Fanisi, and our technology partners, TS3, for their persistence in walking this path with us.”
Paystream’s CEO Mr. Sam Ndegwa says that he is delighted that Paystream has finally stood on its feet, after having gone through a rigorous pilot phase, when the concept was first launched. “I have been involved with Paystream, from its fledgling days, and our ability to bring on board financiers like Fanisi, in an environment where most other financiers look at SMEs like ours as risky ventures, has been a significant achievement. The experience that The Business Phone brings to the table will also be invaluable in building our base, as we look to even bigger achievements.”