South African fintech startup, SOLmate, is experiencing robust demand for its digital wallet within the domestic market. The startup has reported a 100% annual increase in its user base.
A significant achievement for SOLmate arrived in December when it recorded a million transactions since its inception. The past two months alone saw over 30,000 new customers registering on its mobile app.
Established in 2018 as SOL Wallet, SOLmate provides a digital payment platform that offers clients a digital wallet facility complete with an account number and a linked debit card powered by Mastercard.
The startup’s mobile app allows users to make online transactions, transfer funds to others, receive salary payments, and save money in the e-wallet. For a monthly account fee starting at R10, users can also withdraw cash from various retail stores and ATMs across the country.
With SOLmate, users can conduct transactions, refill airtime and utilities, and transfer funds to other SOLmate customers free of charge.
Jonathan Holden, COO of SOLmate, observes that the demand for digital wallets is growing in South Africa as more businesses and retailers shift towards cashless operations.
Factors such as consumers’ desire to save money and the digital wallet’s compatibility with its sister marketplace, SOLshop, have contributed to the company’s rapid customer growth. Customers can buy and pay for groceries on the SOLshop online marketplace using SOLmate.
Holden notes that this trend towards a cashless economy aligns with broader shifts, with significant South African retailers adopting the change. The use of digital payment methods by consumers is increasing, driven by the convenience of mobile wallets, contactless cards, and peer-to-peer platforms.
Consumer Insights by research firm Statista indicates that cash transactions at points-of-sale in South Africa declined by 6% between 2018 and 2023.
In 2021, SOLmate launched a virtual card that lets clients shop securely online and withdraw cash from several retail stores.
According to Holden, factors such as the card and SOLmate’s targeted online marketing attributed to its business growth.
“SOLmate expanded its agent footprint in Johannesburg through a network of over 8,000 agents, and added more functionality to the app to ensure a feature-rich digital wallet,” says Holden.
Plans are underway to integrate more in-app features to ensure SOLmate continues to evolve in 2024. The focus will be to bolster security, user-centric features, and a personalized customer experience to further promote financial inclusion in South Africa.
