South Africa: Street Wallet Gets $350k to Digitize Payments in SA’s Informal Economy

Street Wallet, a South African mobile payments startup, has secured $350,000 (R6.2 million) in funding at a $2 million (R35.5 million) valuation to grow its presence in the country’s informal economy. The round, led by undisclosed investors, will support sales growth and nationwide expansion.

Founded in 2021 by Kosta Scholiadis, Street Wallet provides QR code lanyard cards to street vendors, car guards, and other informal traders. Customers can scan the code and pay via Apple Pay, Samsung Pay, SnapScan, Zapper, or Scan-To-Pay. Vendors receive instant SMS payment confirmations, with funds converted overnight into Standard Bank Instant Money Vouchers, available for withdrawal the next morning.

South Africa has about 3.9 million unbanked and underbanked people, according to the South African Reserve Bank. Street Wallet charges 5% per transaction in street markets, with lower rates for large merchant networks, and is targeting tourism and wage payments alongside its current markets.

The company plans to expand from Cape Town and Durban to Johannesburg by year-end and is developing AI-powered analytics tools to help merchants track transactions.

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Key Takeaways

Street Wallet’s funding round highlights growing investor interest in Africa’s informal economy, a sector often overlooked by mainstream banks and payment providers due to high cash usage and low margins. By focusing on low-cost, QR-based payment acceptance, the company avoids the need for expensive card machines and delivers next-day liquidity–key for traders who rely on daily turnover to restock. The startup’s model addresses structural issues such as settlement delays and accessibility barriers that have limited the uptake of digital payments in townships and street markets. With South Africa’s competitive fintech landscape dominated by SnapScan, Zapper, PayShap, and Yoco, Street Wallet’s niche lies in cost efficiency and rapid cash-out options. If the company can scale its three-pronged approach–serving individual traders, building merchant networks, and offering wage disbursements–it could become a critical link between informal businesses and South Africa’s formal financial system, while also collecting valuable transaction data for future credit or savings products.

By Daba Finance.