The African fintech sector just witnessed one of its biggest consolidation moves. Jonathan Smit, who built Payfast into South Africa's leading online payment gateway, has acquired iVeri, the continent's oldest payment technology provider with nearly three decades of operations.
What particularly notable here is the timing. This is not just another startup acquisition story - it is a seasoned entrepreneur returning to his roots with serious capital and a clear vision for African payment infrastructure.
Why Smit Returned to Payments
After spending years as an investor across private and public markets, Smit decided to get back into the operational side of fintech. His reasoning makes perfect sense for anyone watching African tech trends.
"Payments keep drawing me back because they are infrastructural in nature. Trends come and go, but the need to move money never does, and that is exactly where I want to be," Smit explains.
The engineer-turned-entrepreneur founded Payfast in 2007 and spent 15 years scaling it before his exit. Now he sees iVeri as the perfect platform to build what he calls "the next generation of African commerce."
Strategic African Focus
The acquisition comes at a natural transition point for iVeri's founding team. Co-founders Barry Coetzee and Roland Elferink are moving into retirement and deliberately chose a succession path that keeps control on African soil.
Coetzee, who has known Smit for nearly 20 years, expressed confidence in the transition. The long relationship between the two entrepreneurs clearly influenced this decision over potential foreign buyers.
"His depth of experience in payments, his understanding of the African market and his long-term vision for iVeri made him the natural choice," says Coetzee.
Data Sovereignty and Market Understanding
Smit is betting heavily on local ownership in the current geopolitical climate. His argument about data sovereignty and financial infrastructure autonomy resonates strongly with African governments and businesses.
I find his positioning smart - emphasizing that proximity to African markets gives iVeri better understanding of local conditions and business needs. This is not just marketing speak; it addresses real concerns about foreign-owned fintech infrastructure.
"It is about building solutions on the continent, for the continent—designed around the needs of local businesses and the clients they serve," says Smit.
Continuity First, Innovation Second
For existing iVeri clients and partners, Smit promises continuity before change. His message emphasizes reliability and consistency as non-negotiable elements while promising "responsible innovation."
This approach makes sense given iVeri's established client base and reputation. The company has built trust over nearly 30 years - disrupting that foundation would be counterproductive.
The acquisition signals broader consolidation trends in African fintech, especially as the sector matures and investors seek profitable business models. Smit is return to operational roles also reflects growing confidence in African payment infrastructure opportunities.