South African fintech startup, SOLmate, is making waves in the digital payment realm. Over the past year, they have seen a remarkable surge in their user base, doubling it to reach an impressive 100,000 active users. This growth has been primarily fueled by the increasing demand for eWallet services and strategic partnerships that are expanding access to digital payments in underserved areas.
Jonathan Holden, the Chief Operating Officer of SOLmate, highlighted the shift happening in South Africa’s financial landscape. He emphasized how eWallets are gaining more traction compared to traditional Electronic Funds Transfers (EFTs), particularly among individuals who do not have conventional bank accounts. According to Holden,
“eWallets have become much more popular than EFTs because they are instant and work well for people that may not have traditional bank accounts.”
Founded in 2018, SOLmate has set its sights on catering to the nearly 19 million underbanked individuals in South Africa along with medium-sized businesses that heavily rely on cash transactions. Initially centered around digital eWallet solutions, SOLmate has since expanded its product offerings to include advanced debit card options, real-time payment capabilities, and forthcoming plans for lending services and point-of-sale systems.
The company is strategically positioning itself within South Africa’s burgeoning digital payments sector which currently constitutes about 30% of the overall fintech industry. To keep pace with this growth trajectory, SOLmate has been actively enhancing its payment infrastructure to deliver better services and attract a wider user base.
One of the key drivers behind SOLmate’s rapid expansion is their collaboration with Nedbank. Through this partnership, an innovative feature called WiCode was introduced enabling cash withdrawals at select retailers without requiring a physical card. Furthermore, SOLmate is upgrading its EFT systems and real-time clearing options while also exploring new payment rails like Payshap. By integrating such technologies into their ecosystem, SOLmate aims not only to reduce costs but also offer instant EFT capabilities – a move expected to be highly appealing to prospective customers.
In their upcoming developments slated for release within three months time frame includes enhanced debit cards featuring virtual cards that facilitate seamless contactless payments via mobile devices as explained by Holden:
“Our previous cards were prepaid debit cards. But we are now launching a full-blown debit card… Customers can get a virtual card and make payments without needing a physical card.”
Recognizing the growing appetite for virtual banking solutions among consumers coupled with cost-saving benefits and heightened security measures associated with eliminating physical cards distribution challenges especially in remote regions; SOLmate intends to rollout a tailored point-of-sale solution designed specifically for small businesses allowing them to accept payments directly into their wallets – empowering micro-merchants with autonomy through ownership of these POS machines.
Moreover; equipped with transaction data insights accumulated internally over time from existing users lacking established credit histories due limitations experienced within South Africa’s conventional banking frameworks; they intend on introducing microlending services opening doors previously shut tight within formal financial institutions as noted by Holden “Many of our customers have been loyal but struggle securing loans elsewhere due lack of credit history.”
With each strategic move aimed at enhancing user experience whilst driving financial inclusion across South Africa’s diverse economic landscape; it’s clear that SOLMate’s vision goes beyond just being another digital wallet provider but rather pioneering transformative changes within fintech space providing sustainable solutions positively impacting lives one transaction at a time.
