You’ve probably heard the phrase “small business is the backbone of the economy” before, and for good reason: it is true. Small businesses employ a huge percentage of workers around the globe.
But in countries like South Africa, where more payments are going digital and more customers are looking to swipe their debit and credit cards, smaller businesses still largely do not accept digital payments, potentially missing out on customers accustomed to not carrying any cash.
The fintech company Yoco has decided to tackle this problem head on, using its portable card machines as a way for small businesses and merchants to accept digital payments in person.
Yoco’s strategy to gain a foothold in the industry is twofold: the company aims to be the most recognizable brand in the market and to make the adoption of their portable card machines as seamless as possible for their customers.
And this strategy appears to be working, as the company boasts that it is adding up to 500 merchants a day and has processed over $1 billion in payments, and growing. The company is carving out a market for itself and building a reputation in the process.
$83 Million In Funding
It’s no wonder that Yoco was able to raise $83 million from the Dragoneer Investment Group, a major investor in Chime and Square as well. This makes Yoco the most valuable startup in all of South Africa.
It has raised the most funding of any startup in South Africa and is only third across the entire continent. Yoco plans to use this investment to deliver new products to their customers, such as QR payments and a peer to peer money transfer. As they grow and add new features, they are only cementing their market dominance.
Expanding To New Regions
Yoco is looking past South Africa for growth: The startup is looking at rapidly expanding throughout all of Africa and into the Middle East. This provides an excellent growth opportunity as many merchants throughout these regions are still dealing mostly with cash at the moment but are interacting with customers who are increasingly going digital.
And with word that the company is hiring former employees from Paypal and Uber, Yoco is poised to reach exciting new heights in the fintech sector.
Written by. Johnny T. Ross