South African fintech startup SOLmate has been making waves in the digital payments industry. Over the past year, the company has experienced exponential growth, doubling its active user base to an impressive 100,000. This surge in users can be attributed to the increasing demand for eWallet services and strategic partnerships that have expanded access to digital payments in underserved areas across South Africa.
“eWallets have become much more popular than EFTs, mainly because they are instant and work well for people that may not have traditional bank accounts,”
This shift towards eWallets over traditional electronic funds transfers (EFTs) has been significant. Jonathan Holden, COO of SOLmate, highlighted how their eWallet service saw a remarkable 500% increase in transaction volume. This growth underscores the preference for instant transactions among South Africa’s underbanked population.
Founded in 2018, SOLmate set out to cater to the nearly 19 million underbanked individuals in South Africa along with cash-dependent medium-sized businesses. Initially focusing on digital eWallet solutions, the company has since diversified its product offerings. From enhanced debit cards to real-time payment options and future plans for lending services and point-of-sale systems, SOLmate is positioning itself as a key player in the country’s rapidly evolving digital payments landscape.
Holden emphasized SOLmate’s commitment to enhancing its payment infrastructure continually. One of their major milestones was a strategic partnership with Nedbank that introduced innovative features like WiCode for cash withdrawals at participating retailers without physical cards. Additionally, SOLmate is upgrading its EFT capabilities and real-time clearing processes while also exploring new payment rails such as Payshap to streamline costs and facilitate instant electronic fund transfers.
“Our previous cards were prepaid debit cards. But we are now launching a full-blown debit card.”
In response to evolving consumer needs, SOLmate is gearing up to launch enhanced debit card options including virtual cards that enable seamless contactless payments through mobile devices. By embracing virtual banking tools, the company aims to enhance security measures while reducing distribution challenges associated with physical cards—particularly beneficial for customers in remote areas.
Looking ahead, SOLmate is venturing into microlending by leveraging internal transaction data to offer credit opportunities to long-term users without formal credit histories—a common obstacle within South Africa’s conventional banking sector.
“Many of our customers have been with us for a long time but can’t secure loans at banks or other institutions because they lack credit history.”
SOLmate envisions empowering small businesses with tailored solutions like a portable point-of-sale device that allows vendors to accept payments directly into their eWallets—granting them newfound independence and flexibility.
In conclusion, as SOLmate continues on its trajectory of growth and innovation within South Africa’s fintech sector, it stands poised not only to drive financial inclusion but also revolutionize how digital payments are perceived and utilized across different segments of society.
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