Cape Town fintech targets unbanked street vendors with QR code payment solution and Standard Bank partnership
Cape Town-based fintech Street Wallet has secured $350,000 (ZAR 6.2 million) in funding, achieving a $2 million (ZAR 35.5 million) valuation as it tackles one of South Africa’s largest untapped markets: the country’s one million unbanked street vendors and informal traders.
Addressing the Informal Economy Gap
Founded in 2021, Street Wallet targets a critical pain point in South Africa’s economy where an estimated one million street vendors operate without formal banking services. This exclusion prevents them from accepting digital payments, resulting in lost sales as consumers increasingly abandon cash transactions.
The startup’s solution centers on simplicity: traders receive lanyard cards featuring unique QR codes that link directly to their Street Wallet payment page. Customers can pay through established platforms including Apple Pay, Samsung Pay, SnapScan, Zapper, and Scan-to-Pay.
Seamless Cash Conversion Model
Street Wallet’s key innovation lies in its cash conversion process. Traders receive immediate SMS notifications when payments are made, and by the following morning, their earnings are converted into Standard Bank Instant Money Vouchers. These vouchers can be withdrawn at ATMs or participating retailers, bridging the gap between digital payments and cash access for unbanked traders.
This partnership with Standard Bank provides crucial infrastructure that makes the solution viable for traders who lack traditional banking relationships while ensuring they can access their earnings quickly and reliably.
Scaling Financial Inclusion
The fresh funding will enable Street Wallet to expand its sales team, strengthen partnerships, and extend reach across more South African communities. The company is positioning itself as a financial inclusion enabler, providing secure and accessible digital payment tools for the informal economy.
The timing aligns with broader trends in African fintech, where startups are increasingly focusing on serving underbanked populations through innovative payment solutions and strategic banking partnerships.
Market Impact and Growth Potential
Street Wallet’s approach addresses both sides of the digital payment equation: providing traders with access to digital transactions while maintaining their ability to operate with cash. This dual approach is crucial in South Africa’s mixed economy, where digital adoption coexists with persistent cash dependency.
The $2 million valuation reflects investor confidence in the company’s model and the significant market opportunity presented by South Africa’s large informal trading sector. As digital payment adoption accelerates, solutions like Street Wallet could play a crucial role in bringing millions of traders into the formal financial ecosystem.
