South Africa’s fintechs have spent years making it easier to move money. Now they want to help people and businesses access it when they need it most.
Yoco’s $100 million credit facility from Victory Park Capital, a United States investment firm, is the latest sign of that shift. The South African payments and fintech company is expanding its cash advances business, betting that transaction data can help it finance small businesses that traditional banks struggle to assess.
The opportunity is substantial. But financing requires more than customer numbers and transaction volumes. It demands capital, risk management and the ability to finance responsibly to customers whose financial circumstances can change quickly.
The next phase of South Africa’s fintech boom will depend on whether companies can turn transaction data and customer relationships into sustainable financing businesses. South Africa’s fintech giants, Yoco, Optasia, and Paymenow, are pursuing this opportunity from different angles, responding to a common problem: consumers and small businesses need more than payment services to manage their finances.
South Africa fintechs move beyond payments
For Yoco, financing extends its relationship with independent businesses through card machines, point-of-sale software and online payments.
The company has advanced more than R6.5 billion ($395 million) to over 40,000 merchants since 2018, working with specialist credit providers.
