HPS Plans Strategic Growth through Fintech Acquisition
Moroccan payment solutions company HPS is gearing up for future growth with plans to acquire a fintech firm by 2027, as announced by CEO Abdeslam Alaoui Smaili on Monday.
About HPS
HPS, listed on the Casablanca Stock Exchange, boasts a robust international presence, operating across 95 countries. In 2024, the company recorded a turnover of 1.267 billion dirhams (approximately $140 million), representing a 6.4% growth compared to the previous year.
Recent Acquisition of CR2
In December, HPS expanded its capabilities by acquiring Dublin-based CR2, a developer specializing in banking and digital payment software. This acquisition underscores HPS’s commitment to strengthening its technological offerings.
Focus on Fintech and AI
During the Gitex Africa technology event in Marrakech, CEO Alaoui Smaili revealed the company’s interest in acquiring additional financial technology firms. A significant focus will be on companies that can contribute value in technology, particularly in artificial intelligence.
Impressive Financial Growth
HPS reported a remarkable 386% increase in total contractual value, amounting to 1.1 billion dirhams in 2024. This impressive growth is indicative of the company’s strong market positioning and demand for its services.
Revenue Sources and Expansion Plans
Nearly half of HPS’s revenues are derived from the African continent, followed by contributions from Europe and the Middle East. The company ventured into Australia last year and is eyeing expansion in Canada in 2023, with plans to explore Latin America in the future.
The Role of Digital Currencies
HPS, which manages Morocco’s national payment switch, perceives the legalization of Central Bank Digital Currencies (CBDCs) by African central banks as an opportunity. According to Alaoui Smaili, CBDCs could facilitate increased digital payments and reduce reliance on cash transactions.