JSE-Listed Araxi Acquires Pay@ Group

Talita Clarke
Feb 23
3 min read

Updated: Mar 17

Transaction Tuesdays With Talita: Araxi Limited's Strategic Acquisition of Pay@ Group

On 18 February 2026, the JSE-listed fintech group Araxi Limited (formerly known as Capital Appreciation Limited) announced its intention to acquire an 80% stake in the Pay@ Group for a total consideration of R1 billion. This transaction, facilitated through Araxi's wholly-owned subsidiary, African Resonance, marks a significant consolidation in the South African payments landscape. It moves the target company toward full local ownership by buying out a US private equity firm.

About Araxi Limited

Araxi Limited is a prominent South African provider of payment and software solutions to enterprise clients. The company primarily serves the retail and financial services sectors. Formerly operating as Capital Appreciation Limited, the group rebranded to Araxi in 2025. It owns established brands such as African Resonance, Dashpay, and Synthesis. Araxi focuses on enabling digital finance through contemporary technology, including cloud services, artificial intelligence, and agentic implementations. The company has a history of driving growth through a combination of strong organic performance and strategic acquisitions.

Understanding Pay@ Group

Pay@, founded in 2007, is a leading provider of end-to-end B2B integrated payment solutions. It also boasts significant B2C capabilities. Pay@ operates one of Southern Africa’s most extensive payment networks, with over 9,000 retailer locations, 150,000 mobile Point of Sale endpoints, and 15 digital payment platforms. The group specializes in bill payment aggregation, allowing consumers to pay utilities, insurance premiums, and traffic fines via cash, card, or digital wallets. In the 12 months leading up to the announcement, Pay@ processed more than R60 billion in transaction value. It generated revenue of R271.2 million and maintained a 99.99% system efficacy rate.

Details of the Acquisition

The R1 billion acquisition is structured as a cash-settled deal. It is funded by R200 million from Araxi’s existing reserves and R800 million in committed senior debt. The purchase price allocates R975 million for Pay@ Holdings and R25 million for its affiliate, International Payment Holdings Limited (IPHL). This deal originated from Araxi's strategy to acquire cash-generative, asset-light businesses with proven user acceptance and significant growth potential.

Subject to necessary regulatory and shareholder approvals, the acquisition is expected to be finalized by the end of June 2026. This move represents a strategic initiative to create an integrated payments powerhouse by merging two entities with almost no product overlap. This partnership will drive innovation by applying Araxi’s AI and cloud expertise to Pay@’s e-commerce and SaaS offerings. Additionally, it will leverage IPHL in Mauritius as a gateway for expansion into African and international markets. Furthermore, the deal ensures 100% South African ownership of Pay@ and mandates that profits are reinvested locally to support the domestic economy.

Strategic Implications for Araxi Limited

This merger represents a strategic leap for Araxi Limited. It effectively doubles down on its presence in the global payments ecosystem. By uniting Pay@’s vast physical infrastructure with Araxi’s advanced digital capabilities, the group is positioned to deliver a unique, end-to-end fintech proposition. With a debt-free target, strong transaction volumes, and a committed management team staying on board, the deal sets a new benchmark for scaled fintech platforms in Southern Africa.

Future Outlook

The acquisition of Pay@ Group is poised to enhance Araxi's competitive edge in the fintech sector. The integration of advanced technologies will streamline operations and improve service delivery. As the payments landscape evolves, Araxi is well-positioned to adapt and thrive. The focus on local ownership and reinvestment will also contribute to the growth of the South African economy.

Conclusion

In conclusion, Araxi Limited's acquisition of Pay@ Group is a pivotal moment in the South African fintech landscape. It underscores the importance of strategic partnerships in driving innovation and growth. As we move forward, I am excited to see how this merger will reshape the payments industry and enhance the financial solutions available to clients.

The official announcements can be viewed below: