IFC and the IFC Financial Institutions Growth Fund, have invested in Adumo, South Africa's largest independent payment provider with a presence in 13 African countries.

The investment consists of up to $15m in preferred shares to fund the growth of the company.

The investment will support Adumo to make digital payment systems more affordable and accessible to smaller businesses in Africa, many of which currently rely on cash transactions.

"Through this investment in Adumo, we will be helping small businesses tap into the digital economy, which is more important now than ever before. Digital payments are often the first step for a small business to build a credit history, which opens the way to access further financial services such as financing to grow the business," said Sérgio Pimenta, IFC's Vice President for the Middle East and Africa.

"Supporting small businesses to access finance and financial services affordably and sustainably is a priority for IFC because of their potential to not only grow the economy but also create jobs,” he added.

In South Africa, micro, small and medium-sized enterprises employ over 50% of the work force and contribute around 34% of GDP, but many don't have access to key services that would help their business grow.

Digital and mobile payment solutions can help businesses increase footfall and improve customer retention by supporting the transition away from cash-based transactions.

Adumo, previously known as Crossfin Transactional Solutions, processes more than $5bn in transactions annually through more than 30,000 active clients and across 50,000 active card machines.

Adumo owns merchant acquirers Sureswipe and Ikhokha and payment processor Innervation Pan African Payments.

"The pandemic and associated impact on consumers and businesses are transforming the face of the payments industry with interest in cashless payment services at an all-time high. The funds we have raised from our new equity partners will help us roll out new payment innovations and purpose-based lending services to support consumers and retailers as they navigate an uncertain 2021," said Paul Kent, CEO at Adumo.