Digital wallets have emerged as a powerful tool in driving financial inclusion and banking the previously unbanked population in Africa. SOLmate, a leading online payment platform, is at the forefront of the growth of digital wallets, with the SOLmate app consistently ranking in the top 20 of all financial apps in South Africa by download volume in June 2023.
A digital wallet, also known as a mobile wallet, provides a secure and convenient way to make payments, transfer money, and manage financial transactions. With the decline of traditional banking services and the exponential growth of mobile banking, digital options have become the preferred choice for millions across the African continent.
SOLmate’s app provides clients with a comprehensive digital wallet facility that offers the option to link a virtual or physical debit card (powered by Mastercard) to their own personal SOLmate account number. The platform offers secure online payment options and enables users to shop online safely and withdraw cash from various retail stores and any ATM countrywide. SOLmate allows for free or low-cost receipt and transfer of money and avoids the need for paperwork, branch visits and endless queues.
According to a recent article from McKinsey, Africa’s domestic e-payments market “is expected to see revenues grow by approximately 20 percent per year, reaching around $40 billion by 2025. By comparison, global payments revenue is projected to grow at 7 per cent annually over the same period.”
The adoption of digital wallets in Africa has been spurred by the region’s high mobile-phone penetration rate. According to the GSMA, sub-Saharan Africa boasts over 477 million unique mobile subscribers, providing a solid foundation for the widespread adoption of digital financial services.
There is also room for considerable growth. As the McKinsey article continues: “… on average, only 5 to 7 percent of all payment transactions in Africa were made via electronic or digital channels, compared with 50 percent or more in Turkey, for instance. This means e-payments are a major growth opportunity on the continent, especially as the convenience and scalability of payment methods improve and supporting infrastructure develops.”
Jonathan Holden, COO of SOLmate said, ” Maintaining a bank account can be prohibitively expensive for the unemployed or individuals living below the poverty line. Digital wallets offer a cost-effective alternative, enabling marginalised populations to access essential financial services, including payments, savings, and remittances. Through the provision of accessible, easy-to-use products , SOLmate is dedicated to driving financial inclusion and improving the lives of individuals and businesses across the country.”
SOLmate has seen increasing uptake of its wallet and card solution, with 20% growth in signups over the first half of this year compared to last year.
