In a recent acquisition bid, IDT Corporation, a provider of cloud communications, fintech and conventional communications services, announced taking over a majority stake of Sochitel, an online distribution platform and global hub for electronic vouchers, mobile top-ups and additional value transfer services.
As per credible reports, Sochitel and IDT aim to combine their capabilities and leverage them to expand IDT’s reach of present online services, like money transfers and mobile top-ups, in Africa and to assist in upcoming offerings like e-vouchers and bill payments.
Based out in Lagos and London, Sochitel is well-established throughout Africa, connecting banks, mobile network operators and financial service providers.
Reportedly, the firm’s fintech platform supports the entire continent’s leading banks to provide online, value-added services to almost 60 million customers throughout Africa along with catering to corporate clients across the world.
Emilio del Rio, Senior Vice President, Prepaid Services at IDT commented that the combined efforts with Sochitel will reorganize and expand the firm’s distribution network across major African markets.
In addition, it would also offer access to the new partner base and clients and widen the mobile top-up platform with new digital operations as it expands the value transfer business globally.
Meanwhile, Jerry Ejikeme, CEO, Sochitel expressed that the firm is delighted to be a part of IDT. With the rapid expansion going on in Africa, the joint initiatives by the firm along with strong distribution competences will propel expansion in the continent.
According to sources, Africa, with a population of 1.2 billion and one of the world’s most developing economy, poses as a major growth region for the development of mobile financial services.
It has been speculated that the rising mobile penetration along with scarcity of conventional transaction infrastructure will create tremendous opportunities for financial service providers in the African region.