From a Media and Entertainment Merchant to Payment Aggregator- DSTV’s pivot to Payment.

Multichoice partners with Rapyd and General Catalyst to develop a payment platform.

MultiChoice Group, a South African pay-TV operator serving approximately 14 million people in 50 countries across various platforms, has partnered with payments platform specialist Rapyd and venture capital firm General Catalyst to develop an integrated payment platform for Africa. The joint venture, called Moment, aims to consolidate the $3.5 billion MultiChoice processes annually and provide payments infrastructure for millions of small businesses on the continent, with the goal of turning 90% of Africa's cash transactions digital.

Who exactly is MultiChoice?

MultiChoice Group , through its subsidiaries, offers digital satellite television, digital terrestrial television, online services, over-the-top, and related video-entertainment services. In addition, it broadcasts advertisements on its video entertainment platforms and shows online on its websites and sells set-top boxes.?MultiChoice Group offers its services under the SuperSport, DStv, GOtv, M-Net, Showmax, and Irdeto names. Multichoice was founded in 1995 and is headquartered in Randburg, South Africa.?

Why the shift?

In recent times, MultiChoice has faced fierce competition from streaming giants like Netflix, Amazon Prime Video, and Disney+. This intensified rivalry led to a decline in subscribers and revenue, forcing them to adapt and innovate. Earlier this year, MultiChoice joined forces with Comcast's NBCUniversal and Sky, setting the stage for an awe-inspiring collaboration that promises to bring exceptional content and cutting-edge technology to streaming customers across sub-Saharan Africa.

So, what about payments?

For MultiChoice, this venture is a natural progression. After all, they process payments from subscribers every month from 22 million households across 50 African countries. Multichoice currently partners with PayU, a renowned Netherlands-based payment service provider, to handle card payments from their subscribers. In Kenya, subscribers can pay through their Mpesa accounts and other convenient channels. And in Nigeria, besides PayU, the popular Interswitch Quickteller Mobile Application and Quickteller API distributed through the banks and fintech channels are used by subscribers to pay their multichoice TV subscription. In Nigeria, this payment is pushed monthly from the user's account.

What does this mean for the future?

MultiChoice is set to become a payment aggregator, directly processing payments not only for their subscribers but also for other merchants. They will leverage the payment rails they've relied on for years, transforming themselves into the ultimate facilitators of seamless transactions. Some of their existing payment partners may continue to enable this transition, while others might find themselves becoming competitors. Take, for instance, Interswitch Nigeria, the owner of Quickteller and the widely used Verve card. Even if MultiChoice stops subscribers from paying through Quickteller, Verve card payments will still be processed via Interswitch. In simpler terms, with a payment license, MultiChoice could become Verve card's esteemed third-party processor rather than an Interswitch merchant.

This new model will extend to other payment providers and telecom companies with whom MultiChoice shares a direct relationship, including MPesa. Middlemen in the payment ecosystem will be disrupted, as MultiChoice positions itself as the ultimate intermediary. With its colossal subscriber base and a deep understanding of subscriber preferences and payment habits, this bold move also opens up thrilling possibilities for advancing its internet business.

***About: Ifunanya is a Senior Consultant at KoreFusion. Based in Hong Kong, Ifunanya built her career working in Nigeria across retail, commercial, and corporate banking.?More recently, her experience includes being a pioneer employee in Africa's fintech sector and working in Hong Kong’s fintech scene. If you've enjoyed this piece, don't hesitate to like, leave a comment and share the article with others.

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