By Christian George
Moniepoint has refuted the reports of it’s plans to acquire PayDay.
This came after WeeTracker, an African tech publication, reported that the fintech was set to acquire PayDay for $40 million.
In a report by Techcabal, Moniepoint is a business bank that has the largest agency banking network in Nigeria and processed a total annualised payment value of $170 billion last year.
Also, PayDay is a neobank that connects Africans with the world at large with virtual dollar cards and other similar offerings.
Prior to the report, Moniepoint and PayDay were in a business discussion which could lead the fintech to acquiring the neobank in about three months.
The publication also claimed that the acquisition amount will assume a valuation of $40 million for the neobank.
Some investors close to the deal have denied the reports, clarifying that Moniepoint only invested in the neobank.
Moniepoint stated categorically that their investment in PayDay represented a “strategic investment” and not an acquisition.
The report has it that despite these denials, two other sources say that a deal is on the table and will likely still go ahead in three months.
They claimed that an agreement in principle has been reached and that it will not be a surprise if the deal goes through as the acquisition supposedly makes sense for Moniepoint.
Also worthy of note is that PayDay had earlier turned down a $15 million acquisition offer from an African unicorn.
Payday has an average of 40,000 transactions daily and over $25 million monthly, numbers that make it a solid option for Africans looking to receive money from abroad.
The customer base of PayDay indicates that it has cornered a significant market share.
