SOUTH AFRICA – Online financial services provider RCS, has acquired South African online credit provider Mobicred, as it looks to offer online shoppers a wider range of credit-based offerings.
The terms of the deal have not been disclosed.
Founded in 1999, RCS is the consumer finance arm of global bank BNP Paribas, specialising in offering customers financial services and products in association with leading local retailers.
According to a statement, the acquisition is aimed at driving financial inclusion by empowering South African youth to access credit solutions such as buy-now-pay-later (BNPL) options.
The youth are the fastest-growing category of online shoppers in the country and providing this group of digital natives with access to credit is imperative to the fintech firm, it says.
Mobicred allows customers to shop online and pay for items later through a BNPL business model. Its retail partners include Takealot, iStore, Incredible Connection and Game.
RCS CEO Regan Adams notes there has never been a better opportunity to tap into the accessibility and convenience in the South African e-commerce environment has to offer.
“Our acquisition of Mobicred enables us to better serve the needs of South African consumers who require a more diverse suite of credit solutions to help them access and manage their purchases,” notes Adams.
“The acquisition of Mobicred was the natural next step in RCS’s digital transformation strategy and complements our existing offering perfectly, as we enable our customers to shift towards shopping across their chosen channels – be it in-store or online.”
Founded in 2013 by CEO Jason Sive, Mobicred offers a single credit account for all of a customer’s online shopping needs. Its platform is integrated into over 4 000 online stores throughout South Africa, providing a secure payment option in real-time.
With the acquisition of Mobicred, RCS says it will accelerate its growth in the e-commerce ecosystem by adding new and bespoke brands to the already established shopping network of over 28 000 stores.
“As part of the global BNP Paribas group, we are constantly looking for innovative technologies to enhance the customer experience and bolster our engagements. It is important to stay abreast of new fintech developments and integrate innovation into every touchpoint in our business,” explains Adams.
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