(Ecofin Agency) - Africa’s largest bank by assets, Standard Bank, acquired a majority stake in the fintech company Firepay, for an undisclosed amount. In 2014, Firepay, barely a year old, developed a solution to help Standard Bank’s customers pay their bills, goods and service via mobile.

“We are excited about working more closely with the Firepay team and think that there is an excellent strategic fit between their capabilities and Standard Bank’s vision for a truly universal bank, both in South Africa and throughout the African continent,” said Wendy Pienaar, SBSA Head of Emerging Payments

Financial technologies are at the center of the strategy of African banks that wish to be more efficient and closer to their customers. South Africa’s four largest banks namely Firstrand, Nedbank, Barclays Africa and Standard Bank spent up to R30 billion ($2.1 billion) over the 12 months ended June 30, 2016, in this framework. This amount represents up to 15% of their combined operating cost for the period.

According to the results of the first semester which ended on June 30, 2016, Standard Bank generated R1.06 billion ($76.25 million) in revenues, via its various digital service platforms (internet banking, credit card, mobile app, etc.). Transactions on its mobile app recorded the highest growth rate in terms of generated revenues, knowingly R65 million (+92%).

Idriss Linge