EFT Corporation Market Research Report

Background

Overview

EFT Corporation, established in 1999, has evolved from an IT company into Africa's leading payment solutions provider. In January 2024, the company merged with Ukheshe, a prominent fintech firm, to enhance its capabilities in payment processing, Banking-as-a-Service (BaaS), and orchestration, thereby expanding financial access across the continent.

Mission and Vision

EFT Corporation's mission is to create tailored payment solutions that meet the needs of financial institutions across Africa, building trust and long-term partnerships. The vision is to create a seamless payment landscape in Africa that connects and empowers businesses, organizations, and individuals.

Industry Significance

With over 26 years of experience, EFT Corporation serves over 100 financial institutions across 14 African countries. The company partners with global technology leaders like Mastercard, Visa, Thales, ACI, Verifone, and Stratus to bring trusted solutions to the African market. Backed by Development Partners International (DPI), one of the continent’s top private equity firms, EFT Corporation is committed to expanding financial access in Africa.

Key Strategic Focus

Core Objectives

EFT Corporation aims to modernize payment capabilities, enhance financial inclusion, and drive digital transformation for financial institutions across Africa. The company focuses on delivering secure, simple, and reliable digital payment services tailored to regional market demands.

Areas of Specialization

Payment Processing: Modernizing payment capabilities through an extensive suite of payment solutions.

Banking-as-a-Service (BaaS): Providing platforms that enable financial institutions to offer digital services without the need to build their own infrastructure.

Issuing and Acquiring: Facilitating the issuance of digital and physical cards and enabling merchants to accept card payments online and in-store.

Switching and Payment Processing: Offering tools for fast and secure money movement, built for banks, telcos, and large enterprises in Africa.

Key Technologies Utilized

EFT Corporation leverages cloud-based open-loop payment systems, ensuring scalability and flexibility. The company also integrates with global payment networks and partners with technology leaders to enhance its service offerings.

Primary Markets Targeted

The company primarily targets financial institutions, businesses, and individuals across Africa, focusing on regions with emerging markets such as East Africa (Ethiopia and Kenya) and West Africa (Ghana).

Financials and Funding

Funding History

EFT Corporation has been backed by Development Partners International (DPI), a leading private equity firm in Africa. The merger with Ukheshe in January 2024 further strengthened its financial position, enabling the company to expand its offerings and market reach.

Recent Funding Rounds

Specific details regarding recent funding rounds are not publicly disclosed.

Notable Investors

Development Partners International (DPI) is a significant investor in EFT Corporation.

Utilization of Capital

The capital raised has been utilized to enhance technological infrastructure, expand service offerings, and support regional expansion efforts across Africa.

Pipeline Development

Key Pipeline Candidates

EFT Corporation is focusing on developing and enhancing its payment orchestration platform, particularly the "Eclipse" solution, to support existing banking infrastructure and add measurable value for banks and fintech partners across the continent.

Stages of Development

The company is in the advanced stages of integrating innovative technologies and streamlining operations to reinforce its position as a trusted partner for banks and fintechs.

Target Conditions

EFT Corporation aims to address the challenges of optimizing existing banking infrastructure, reducing costs, and enhancing payment efficiencies in emerging markets.

Anticipated Milestones

The company plans to expand its footprint in East Africa, particularly in Ethiopia and Kenya, and in West Africa, starting with Ghana, by tailoring its solutions to meet specific regional demands.

Technological Platform and Innovation

Proprietary Technologies

Eclipse Platform: A payment orchestration solution designed to support existing banking infrastructure and enhance payment efficiencies.

Significant Scientific Methods

Cloud-Based Open-Loop Payment Systems: Ensuring scalability and flexibility in payment processing.

Integration with Global Payment Networks: Partnering with technology leaders to enhance service offerings.

Leadership Team

Key Executives

Clayton Hayward: Group Chief Executive Officer (CEO).

Catherine Korsten: Chief Commercial Officer (CCO).

Carlin Wicomb: Chief Sales Officer (CSO).

Professional Backgrounds and Contributions

Clayton Hayward: Leads the company's strategic vision and oversees operations, focusing on integrating innovative technologies and streamlining operations.

Catherine Korsten: Oversees commercial strategies, ensuring the company remains responsive to trends in the payments sector and meets clients' specific needs.

Carlin Wicomb: Leads the sales team, focusing on solving clients' individual challenges and tailoring solutions to regional market demands.

Competitor Profile

Market Insights and Dynamics

The African fintech landscape is rapidly evolving, with increasing adoption of digital payment solutions and a growing emphasis on financial inclusion. Approximately 45% of the population in Sub-Saharan Africa did not have a bank account as of 2021, and about 90% of retail transactions are still cash-based, indicating a significant opportunity for digital payment solutions.

Competitor Analysis

EFT Corporation faces competition from various regional and international payment solution providers. Key competitors include:

Euronet Worldwide: A global electronic payment services provider operating in Europe, Asia, and the Middle East.

Pulse: An interbank electronic funds transfer network in the United States, serving over 4,400 financial institutions.

Strategic Collaborations and Partnerships

EFT Corporation has established partnerships with global technology leaders such as Mastercard, Visa, Thales, ACI, Verifone, and Stratus to enhance its service offerings and expand its market reach.

Operational Insights

EFT Corporation differentiates itself through its deep understanding of the African market, offering tailored solutions that address regional challenges and leveraging its extensive network of partnerships to provide comprehensive payment solutions.

Strategic Opportunities and Future Directions

Strategic Roadmap

EFT Corporation plans to:

Expand Regional Presence: Focus on East Africa (Ethiopia and Kenya) and West Africa (Ghana) by tailoring solutions to meet specific regional demands.

Enhance Technological Infrastructure: Continue integrating innovative technologies to support existing banking infrastructure and improve payment efficiencies.

Drive Financial Inclusion: Develop solutions that cater to the unbanked population, promoting financial inclusion across the continent.

Future Business Directions

EFT Corporation aims to position itself as the leading payment orchestration platform provider for banks, driving their digital transformation journeys and expanding its footprint across Africa.