Frequently Asked Questions

Novo42 is a Merchant of Record that helps global businesses compliantly operate in African markets by simplifying market entry and operations. The company offers tailored services ensuring regulatory compliance, local payment partnerships, tax management, and financial operations.

There are 42 currencies in Africa, demonstrating the complexity that global merchants face when expanding into the continent.

Novo42 may appear on your bank statement because we are the local Merchant of Record for the global brand you purchased from. When you buy from certain international brands in South Africa, Novo42 acts as the local legal seller and processes the payment locally in Rand. As a result, “Novo42” may appear on your bank statement instead of the brand's name.This is normal and secure. Your purchase, however, is still for the product or service you bought from the brand.

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Businesses expanding into Africa must navigate unfamiliar regulatory and tax regimes, complex operating environments, and nuanced customer cultures. In markets with unproven return on investment, these challenges often disincentivise local market entry and exclude local consumers from global commerce.

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Novo42 simplifies the complexities of operating in South Africa for global businesses by handling local compliance, tax compliance, exchange control, and payment partnerships, enabling businesses to focus on growth. We plan to expand services to other African countries in 2027.

Our vision is to be the single partner that unlocks Africa's potential by helping global businesses enter, grow and expand across local markets.

Global businesses must navigate unfamiliar regulation, tax law, and exchange control, impacting their ability to operate compliantly and remit funds to global headquarters. Other challenges include currency volatility, unique consumer cultures and payment methods, and tough operating conditions.

If you made a purchase from the brand shown in your transaction details, the payment was processed by Novo42 on that brand's behalf as its local Merchant of Record. Novo42 appearing on your statement does not mean you made a separate purchase from Novo42. It is the name of the local seller associated with the transaction. If you don't recognise the transaction, you can use our transaction lookup to check the brand, date, amount and transaction status. If you still don't recognise it, contact us and we'll help you investigate.

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Localisation ensures global businesses can reach and retain more customers by offering their payment methods of choice, while ensuring compliance with regulation and reducing operational risk. Processing using local payment partners and methods also increases success rates and reduces chargebacks, compared to the limitations of international card payments.

• ‍For Merchants: Novo42 combines in-country expertise, strong local partnerships, and end-to-end localisation services to enhance operational success for global merchants. Our unique vetted operating model ensures compliance with applicable local laws and regulations, while minimising disruption to the merchant’s global operations. ‍
• For Customers: this means easier and more secure access to global products and services they love, with localised payment methods and  smoother checkout experiences. 

Services include localisation advisory, regulatory compliance, distribution of goods, risk management, payment processing partnerships, tax compliance, and financial reporting. See more on our Products page.

Novo42 processes the payment locally on behalf of the brand you bought from, so the transaction is treated as a local one rather than an international purchase. This means two things for you. First, your bank won't add international processing or currency conversion charges on top of the price, so what you see at checkout is what comes off your account. Second, your card or payment method works even if it isn't enabled for international transactions, which is a common reason payments to overseas brands get declined.

Novo42's services reduce costs, improve transaction success rates, and provide access to local payment methods, ensuring higher customer conversion and market penetration. Working with us as a trusted partner can reduce the time to market, streamline operations, and mitigate the risk of non-compliance with local regulations and tax law.

Novo42 partners with local payment processors like Precium to ensure high payment success rates, reduce chargebacks, and provide reconciliation services tailored to South Africa's market.

Our primary clients are global SaaS, payment orchestrators, e-commerce and marketplaces.

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A Merchant of Record (MoR) is the responsible party facilitating a transaction in a region on behalf of a merchant. While MoRs can offer different levels of service, most perform the function of facilitating the sale locally, collecting payments, handling tax and VAT compliance, refunds and chargebacks, and preventing fraud. An MoR assumes all payment-related liabilities for transactions. Essentially, it ensures businesses comply with international tax laws and payment regulations when they enter new regions.

Novo42 ensures adherence to local laws, including consumer protection, data privacy (including POPIA), tax obligations, and exchange control. Our operating model has been vetted by acclaimed legal experts, the South African Reserve Bank, acquiring banks, and payment schemes.

Businesses with global audiences, such as SaaS companies, e-commerce brands, and those selling digital products or exporting consumer physical goods, benefit from an MoR. They help streamline payments, ensure compliance with international tax laws, and simplify operations for companies entering multiple markets.

Partnerships include Precium for local payment processing, local acquiring banks, as well as selected global payment orchestrators.

An MoR takes full responsibility for the order process, compliance, and liabilities across different markets. In contrast, a PSP only facilitates transactions by transferring funds between buyers and sellers without assuming any legal or tax-related responsibilities.

Services include managing tax compliance, fraud prevention, refunds, chargebacks, currency conversion, and PCI compliance. They also handle setting up merchant accounts, negotiating processing fees, and filing taxes in different jurisdictions.

Partnering with an MoR eliminates the burden of managing global tax laws, payment compliance, and associated liabilities. This allows businesses to focus on product development and customer engagement, ensuring smoother operations and reduced risk in international markets.