Street Wallet, a Cape Town–based fintech startup, has raised USD 350,000 (ZAR 6.2 million) in fresh funding. This puts the company’s valuation at at USD 2 million (ZAR 35.5 million). The investment will enable the company to expand its sales force, deepen partnerships and reach more underserved communities.
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Street Wallet was founded in 2021 and seeks to address one of the biggest challenges in South Africa’s informal economy. About 1 million street vendors and small traders in the country lack access to formal bank accounts and this limits their ability to accept digital payments.
Street Wallet’s solution is built for accessibility. Every trader receives a lanyard card with a unique QR code that is linked to their Street Wallet profile. Customers can choose from different payment options such as Apple Pay, Samsung Pay, SnapScan, Zapper and Scan-To-Pay. The trader receives instant SMS confirmation once payment is made. By the following morning, The earnings are converted into Standard Bank Instant Money Vouchers by the following morning and can be withdrawn at ATMs or retail outlets.
According to Scholiadis, the startup’s goal is to create a level playing field for small traders. “We believe technology should level the playing field. With the right tools, anyone can fully participate in the digital economy,” he said in a statement.
Informal trade is not unique to South Africa. Across Africa, from Nigeria’s open markets to Kenya’s roadside vendors, millions of small traders face similar barriers to participating in the digital economy. Mobile money platforms like M-Pesa in East Africa and Paga in Nigeria have demonstrated the value of low-friction payment systems.
If Street Wallet achieves wide adoption, this solution can be replicated across Africa. This will help in blurring the lines between formal and informal financial systems.
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