South African fintech startup, SOLmate, is riding a wave of explosive growth, doubling its active user base to around 100,000 over the past year. The surge comes amid skyrocketing demand for eWallet solutions and strategic partnerships aimed at expanding access to digital payments in underserved regions.

 

At the heart of SOLmate’s momentum is its mobile-first eWallet platform, which has seen transaction volumes increase by 500% year-over-year. The service allows users to send money directly to mobile numbers – an increasingly preferred alternative to traditional EFTs (electronic funds transfers) among South Africa’s underbanked population.

“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,” said Jonathan Holden, SOLmate’s Chief Operating Officer, in an interview.

 

Founded in 2018, SOLmate focuses on bridging the gap for South Africa’s nearly 19 million underbanked citizens and cash-heavy small to medium-sized enterprises. The startup started with a digital wallet core but has steadily expanded into debit cards, real-time payments, and plans to launch lending and point-of-sale (POS) systems – all part of a push to solidify its place in the country’s evolving fintech landscape, where digital payments make up roughly 30% of the sector.

A key driver of its recent growth is its partnership with Nedbank, which helped deploy the WiCode feature – enabling cash withdrawals from participating retailers without the need for a physical card. This innovation has helped SOLmate gain traction in areas where traditional banking infrastructure is sparse.

The company is also enhancing its payment infrastructure, upgrading its EFT and real-time clearing capabilities and preparing for the integration of PayShap, a national payment rail designed to offer low-cost, instant EFTs. This move is expected to further appeal to mobile-first users and reduce friction in peer-to-peer transactions.

South Africa Reserve Bank Partners with Local Banks to Launch PayShap, a Low-Payments Mobile Systemhttps://t.co/6lzmtt6QBj#payments

— PaymentsNews.com (@paymentsnews) March 15, 2023

In the coming months, SOLmate plans to launch enhanced debit cards, including virtual cards that will support seamless, contactless payments through platforms like Google Pay.

“Our previous cards were prepaid debit cards. But we are now launching a full-blown debit card,” said Holden.

“With the right mobile device, customers can get a virtual card, tokenise it, and make payments without needing a physical card.”

 

By prioritizing virtual card issuance, SOLmate aims to cut distribution costs and boost security – particularly in remote areas where delivering physical cards is logistically complex.

 

Another major development is SOLmate’s upcoming POS solution for micro and small businesses. The portable devices will allow merchants to accept card payments and receive funds directly into their SOLmate wallets, offering an end-to-end ecosystem for entrepreneurs.

“We’re going to make small vendors truly independent with their own machines,” Holden added.

 

Looking ahead, SOLmate is also laying the groundwork for a microlending product. By leveraging internal wallet and transaction data, the platform aims to offer credit to long-term users who are typically excluded from traditional lending due to a lack of formal credit history.

“Many of our customers have been with us for a long time, but they can’t secure loans at banks or other institutions because they lack credit history,” Holden said.

 

As South Africa’s digital economy matures, SOLmate is positioning itself as a key enabler of financial inclusion – leveraging innovation, data, and smart partnerships to bring borderless, mobile-first banking to the masses.

 

 

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