How Fintech Bridges Gaps for Township Merchants
Submitted by: Kazang Save to Instapaper
Merchants in South Africa’s cash-driven township and rural economy remain underserved by the mainstream financial services sector, creating opportunities for fintech companies to address their pain points. These innovative solutions empower merchants to better serve their customers and operate efficiently.
That’s according to Lincoln Mali, CEO of Lesaka Technologies, who spoke at the Township Economy Summit 2024, hosted by the Township Entrepreneurs Alliance (TEA).
He noted that legacy financial service providers fail to meet specific needs, such as:
- Digital payment solutions.
- Access to growth capital.
- Secure and automated cash management tools tailored to informal merchants.
The Untapped Potential of South Africa’s R900 Billion Informal Economy
With over 500 townships across South Africa and an informal market estimated at R900 billion, the sector is experiencing strong growth. Factors such as:
- Competitive pricing offered by informal merchants.
- Improved customer experience at spazas and townships.
- Reduced transport costs for customers.
Mali emphasised the need for businesses to recognise the value of township entrepreneurs and form partnerships to offer innovative solutions that foster sustainable growth.
Partnering with Township Entrepreneurs for Shared Prosperity
Lesaka Technologies, with R72 billion in throughput across 93,000 merchants, is building a holistic ecosystem for township merchants. Through its subsidiary, Kazang, Lesaka provides innovative solutions such as:
- Card payments acceptance to reduce reliance on cash.
- Lending options to help businesses grow.
- Value-added services (VAS) like airtime and bill payments.
- Safe, cashless supplier payments.
- Data insights to enable better pricing and promotional decisions.
The Kazang VAS terminal is a critical tool, offering merchants the ability to:
- Accept card payments.
- Process cashbacks.
- Vend prepaid services, such as electricity, airtime, data, and gaming vouchers.
About Kazang
Kazang is a leading provider of cash and digital solutions to merchants in Southern Africa’s informal economies. Operating with 90,000 active devices, Kazang processes approximately 2.2 million transactions daily in markets such as South Africa, Namibia, Botswana, and Zambia. Kazang helps merchants grow by increasing sales, improving efficiency, and reducing risks.
Kazang is a member of Lesaka Technologies.
About Lesaka Technologies, Inc.
Lesaka Technologies, Inc. (Lesaka™) is a South African fintech company offering banking and payment solutions to merchants (B2B) and consumers (B2C) across Southern Africa. Lesaka’s mission is to drive financial inclusion through affordable services in underserved sectors.
Lesaka provides:
- Cash management solutions.
- Growth capital.
- Card acquiring.
- Bill payment technologies.
- Value-added services.
Lesaka is listed on NASDAQ (NasdaqGS: LSAK) and the JSE (JSE: LSK). Visit www.lesakatech.com for more information.
Press Release Submitted By
Company Name: Lesaka TechnologiesWebsite: https://www.lesakatech.com
Total Words: 603
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How Fintech Bridges Gaps for Township Merchants
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