Connect with us

Payments

South African payments startup Yoco raises $83M Series C backed by Dragoneer

Published

on

Small and medium enterprises (SMEs) contribute heavily to the economic success of many countries, particularly those in the developing world. They are the backbone of most economies: Globally, SMEs represent about 90% of existing businesses and create more than 50% of employment.

In South Africa, these businesses contribute around one-third of the country’s GDP. Last year, the coronavirus pandemic threatened the existence of some of these SMEs, and its effects linger as owners worry about revenue, sales and cash flow.

Since launching in 2013, South African fintech Yoco has positioned itself as the go-to platform to access offline payments among merchants in the country. Today, the company is announcing $83 million in Series C funding to scale offline and online offerings and expand to new markets.

Despite South Africa’s high card and mobile penetration rates of over 70%, the country’s SMEs still struggle to accept cards. Yoco’s portable card machines have proved masterful in solving this problem; when TechCrunch covered the company three years ago after its $16 million Series B raise, it had little over 30,000 merchants using its platform. Now, that number has quintupled.

As Yoco grew exponentially in providing offline payments, it built an online offering. After being in beta for a while, the rollout came right on time some days into South Africa’s lockdown in March last year. This way, South African merchants could continue accepting payments on the platform.

“We want to offer whatever payment methods our merchants need. And we did start in the in-person payment space, focusing on terminals, which was where the biggest demand was,” chief business officer Carl Wazen said. “But the pandemic, which had a devastating effect on so many businesses that relied on in-person trade, accelerated the need for businesses to accept payments online.”

During the height of the lockdowns in South Africa, sentiment across SMEs owners on a scale of -100 to 100 dropped to an all-time low of -12 in Q2 2020, according to Yoco’s small business pulse monitor. It has since improved following the easing of the lockdowns, allowing businesses to move more freely and continue in-person payments. As a result, Yoco’s online payments account for a minute part of the transactions made on the platform.

But that’s not to say people are transacting with cash. In fact, it’s the opposite, according to Wazen. Wazen says one post-pandemic behavior he noticed was that once the lockdown was lifted, people came back to make in-person payments in an accelerated way because they stopped using cash. “Recent consumer behavior shows a shift away from cash, and businesses have to rapidly adapt to this change. This presents a huge opportunity, and it is our mission to support that transition,” he added.

Earlier this year, chief executive Katlego Maphai said Yoco was looking to expand its services into other aspects of digital payments. He listed mobile money, QR payments and electronic funds transfer (ETF) as offerings in its pipeline. Wazen corroborated this, but didn’t provide an update about where the company is with these offerings. He did mention, however, that the company is still very much a card-focused payment provider.

Yoco’s strategy as the foremost card payments provider in South Africa lies in creating access and removing barriers to adopting digital financial services. The company does that by focusing on product capabilities that Wazen claims are the most comprehensive for small and medium businesses. He adds that in terms of market presence, Yoco is also the easiest for merchants to access services through different channels seamlessly.

“We’ve got a brand that is recognized now. That’s how we win and it’s about staying as focused as possible on that part of the market that, in our opinion, people like other competitors are not focused on enough.”

South Africa has over 6 million small businesses that still transact only in cash; this provides a huge opportunity for Yoco. According to the company, the number of small businesses that were fully cashless jumped 300% from March to July 2020. Yoco currently serves 150,000 of these businesses and adds over 500 merchants per day. The company claims to be processing more than $1 billion in card payments per year, and in its six years of existence, it has processed over $2 billion in card payments.

Yoco

Image Credits: Yoco

Yoco has raised a total of $107 million. The company’s Series C investment is the largest of its kind in South Africa and one of the largest for any African fintech (third only to Flutterwave and Chipper Cash). Wazen also claims it is the largest by any small business-focused payments platform in the Middle East and Africa.

Yoco is currently one of the most valuable startups on the continent, and as a fintech startup, it comes as no surprise. The sector continues to dominate startup venture capital funding in Africa while its heavy hitters bring first-time investors to the continent.

In Yoco’s case, it’s Dragoneer Investment Group. The fund has famously backed fintech giants like Chime, Klarna, Nubank, Mercado Libre and Square.

Other investors that participated include new investors Breyer Capital, HOF Capital, The Raba Partnership, 4DX Ventures and TO Ventures; and existing investors Partech, Velocity Capital Fintech Ventures, Orange Ventures and Quona Capital. Current and former executives from global tech companies such as Coinbase, Revolut, Spotify and Gojek took part as well.

“We couldn’t be more excited to partner with the Yoco team,” Christian Jensen, co-head of private investments at Dragoneer, said in a statement. “At Dragoneer, we look for great teams that are building durable businesses with wonderful economic models, and that is exactly what we’ve found at Yoco. Yoco is already beloved by customers, and the product roadmap that the company is investing behind will drive even more value for merchants. While there is tremendous room for continued growth domestically, the opportunity for Yoco goes well beyond South Africa.”

There are three core enablers to Yoco’s thriving business, Wazen pointed out. First is its product capabilities, second is its platform and third is its market presence. This investment will be there to accelerate all three. Yoco is transitioning from a pure payment acceptance play into a full financial ecosystem on the product side. The platform play will see Yoco continue to integrate and take advantage of regulatory easing vertically, and Yoco is deepening its market presence in South Africa.

While Wazen believes Yoco has barely scratched the surface in South Africa, he’s looking forward to replicating its growth in other parts of Africa and the Middle East. With over 100 million SMEs transacting in cash across both regions, Yoco plans to reach at least a million within the next four years.

To accomplish this, Yoco is increasing its team by 200 people remotely and across its offices in Cape Town and Amsterdam within the next year. The company is also tapping into a current trend that has seen African soonicorns and unicorns hire former top employees from global companies to scale theirs to new heights. While it doesn’t mention names, some of Yoco’s new hires include a former VP of product at Monzo, a former product marketing director at Paypal and a former head of communications at Uber. The company has also brought on board a new chairman, Juan Fuentes, the former managing director of fintech unicorn Pagseguro.

PlatoAi. Web3 Reimagined. Data Intelligence Amplified.
Click here to access.

Source: https://techcrunch.com/2021/07/27/south-african-payments-startup-yoco-raises-83m-series-c-led-by-dragoneer/

Fintech

Remitly’s IPO reveals details of its technology moves

Published

on

Remittance fintech Remitly began trading on the Nasdaq Thursday, with its IPO starting at $43. The Seattle-based company’s S-1 filings, filed ahead of its IPO reveal details about some of the fintech’s technology efforts and how they contribute to its business model. Remitly is built on a cloud-based service-oriented architecture, or SOA, according to the […]

PlatoAi. Web3 Reimagined. Data Intelligence Amplified.
Click here to access.

Source: https://bankautomationnews.com/allposts/payments/remitlys-ipo-reveals-details-of-its-technology-moves/

Continue Reading

Fintech

Vopy Payments selects FSS Technologies to support global digital payments growth

Published

on

Vopy Payments selects FSS Technologies to support global digital payments growth

FSS (Financial Software and Systems), a leading global provider of integrated payment products and a payment processor, has been selected to work with Vopy Payments in a partnership designed to support European digital commerce growth through a premium embedded finance approach.

Embedded finance – which supports the integration of financial services into products and business processes of non-banks – is becoming increasingly relevant in Europe fuelled by Open Banking and digital transformation, with global growth predicted to exceed $138 billion in 2026[1].  FSS is among the leading providers of card issuance products globally, managing 800 plus million payment cards for Tier One banks and payment processors and is already helping to support the growth of embedded payments across multiple global markets. Vopy and FSS will collaborate closely, offering greater value to customers by combining FSS’s Unified Card Issuance Platform with particular emphasis on card management, support around 3DSecure adoption with FSS’s Access Control Server and integration of FSS’s Reconciliation Solutions.

Speaking on the partnership Vopy CEO, Kim Forsell said; “Our goal is to fully maximise the embedded finance opportunity with a broad solution set encompassing not only payments but also digital lending, saving and investment applications, leading ultimately to a fully rounded business proposition enriched with unique marketing and business services. We therefore needed a partner who shared our vision and selected FSS because it has a proven and robust payment processing solution and an experienced team of domain specialists to support continual innovation. Leveraging their know-how, we can refine our payment solutions bringing innovative added value services to the market to deliver superior, secure payments experiences.”

The partnership will focus on driving payments excellence for leading consumer brands among telecom providers, social network platforms, consumer tech and other business verticals across multiple markets in Europe, before extending into other markets in other regions.

“The global demand for embedded payments is increasing but none more so from businesses within Europe,” commented Krishnan Srinivasan, Chief Operating Officer FSS PayTech. “It’s testament to players such as Vopy that consumers and businesses across the region are already benefiting from their innovative, robust and secure solutions. We are confident that this partnership will accelerate their development even further and, in turn, contribute significantly to Europe’s digital payments ecosystem.  We are happy that we can play a part in this, as a key contributor and partner to Vopy.”

PlatoAi. Web3 Reimagined. Data Intelligence Amplified.
Click here to access.

Source: https://www.fintechnews.org/vopy-payments-selects-fss-technologies-to-support-global-digital-payments-growth/

Continue Reading

Payments

This Week in Fintech ending 24 September 2021

Published

on

This week our experts brought you the following insights based on their experience as investors, entrepreneurs & executives.

Monday Ilias Hatzis our Greece-based crypto entrepreneur (Founder & CEO at  Kryptonio a “keyless” non-custodial bitcoin and cryptocurrency wallet, that lets users manage bitcoin and crypto, without private keys or passwords and Weekly Columnist at Daily Fintech) @iliashatzis wrote Epic v. Apple: The metaverse will not be monopolized

Apple makes big bucks from its App Store since it launched it in 2008 with an initial 500 applications. The app ecosystem has grown into more than five million apps and into a huge business, with users spending $380 billion worldwide on in-app purchases. In 2020, Apple made $72.3 billion and Google made $38.6 billion. A recent California court decision may have opened the flood gates for crypto in-app purchases. Now Apple will have to give users the option to buy digital goods on the App Store or exit the app to buy directly from developers. The court’s decision gives developers and users choices to a wider array of payment options and potentially allowing users to make payments within the iOS ecosystem, using their cryptocurrency wallets.

Editor note: Ilias makes the case that this court decision opens the way to paying for in app purchases using crypto which would change everything.

——————————————-

Tuesday Bernard Lunn, CEO of Daily Fintech and author of The Blockchain Economy wrote: Part 3 Square’s moves in Crypto

Square (SQ) is ranked 7 in the Fintech 50 Index of publicly traded Fintech stocks and describes itself as “tools to empower businesses and individuals to participate in the economy. Sellers use Square to reach buyers online and in-person, manage their business, and access financing. And individuals use Cash App to spend, send, store, and invest money”.

The company has been making big moves in Crypto during both bull and bear markets.

Editor note: Some subjects are too complex for our short attention spans, so we do 4 posts one week apart, each one short enough not to lose your attention but in aggregate doing justice to the complexity of the subject. Stay tuned by subscribing.

Wednesday Alan Scott Managing Director EMEA at 24 Exchange @Alan_SmartMoney wrote his weekly roundup of Stablecoin news.

——————————————-

Thursday

Rintu Patnaik, an Insurtech expert based in India, wrote: Digital Health Ecosystems Part 3: Emerging Possibilities, Unfettered Potential

This concluding part extends the narrative from insurtech orchestrators (Part-1) and pioneers like Vitality (Part-2) to emerging ecosystem impacts, based on examples of Manulife and John Hancock, its US subsidiary.

Customer-focused health ecosystems are being designed to seamlessly deliver the right care in the right setting at the right time. Globally, they are evolving along with the fundamental forces disrupting healthcare. Key components comprise providers, insight engines that leverage behavioral, social and health data and a connected technology backbone. While health ecosystems are significantly enabled by digital, they integrate digital and physical health services.

Editor note: Data from humans – aka ”Internet of Bodies” – is revolutionising healthcare and health insurance..

Christian Dreyer @x3er, the Swiss based CFA who focusses on how XBRL changes our world wrote his weekly roundup of XBRL news.

——————————————-

Friday Howard Tolman, a well-known banker, technologist and entrepreneur in London is on holiday today so Bernard Lunn, CEO of Daily Fintech and author of The Blockchain Economy is covering for him with a story Tolman suggested:

American JP Morgan cat lands among the english digital bank pigeons and Big Five high street bank cats.

——————————————-

To continue receiving ‘This Week in Fintech’, the weekly recap of our articles, you will need to fill this form to give us consent to send this to you. Please note that Daily Fintech requires your organizational email address (e.g. corporate, educational or government) and your LinkedIn URL. This information is required for subscribers who want ‘This Week in Fintech’ for free. If you prefer to not provide this information, you can still receive all our content by becoming a paying member.

PlatoAi. Web3 Reimagined. Data Intelligence Amplified.
Click here to access.

Source: https://dailyfintech.com/2021/09/24/this-week-in-fintech-ending-24-september-2021/

Continue Reading

Fintech

Novatti grows Ripple partnership, expanding into Thailand

Published

on

Novatti Group Limited, a leading Australian fintech that enables businesses to pay and be paid, announces that its partnership with Ripple, a leading provider of enterprise blockchain and crypto solutions for cross-border payments, has now expanded to Thailand and is generating revenue.

Ripple’s global financial network technology, RippleNet, provides its partners with the ability to process cross-border payments instantly, as well as providing access to emerging, high-growth capabilities, such as blockchain and the digital asset, XRP, a top 10 global cryptocurrency currently valued at more than USD$40 billion.1

Novatti and Ripple’s partnership began in December 2020, with an initial focus on targeting cross-border transactions between Australia and the South East Asia region. In April this year, Novatti tapped on RippleNet’s On-Demand Liquidity (ODL) service for remittances between Australia and the Philippines, leveraging XRP for instant, cross-border payments.

With this expansion to Thailand, Novatti has partnered with the first Thai bank, Siam Commercial Bank (SCB), through RippleNet.2 This is expected to result in thousands of transactions a month being processed by Novatti through RippleNet. Revenue from this partnership is dependent on take-up of the services.

Going forward, Novatti and Ripple will continue partnering to launch this innovative service in new markets across South East Asia.

Managing Director of Novatti, Peter Cook, said, “The partnership between Novatti and Ripple continues to go from strength to strength. Within the first year of our partnership, we have successfully launched and generated revenue from new services in two countries in South East Asia alongside leading local partners, such as Siam Commercial Bank.”

“The expansion of the Novatti-Ripple partnership into Thailand again highlights how Novatti can leverage its existing ecosystem to enter new markets. This is a model we will seek to replicate going forward, including in other new markets in South East Asia,” Cook added.

PlatoAi. Web3 Reimagined. Data Intelligence Amplified.
Click here to access.

Source: https://australianfintech.com.au/novatti-grows-ripple-partnership-expanding-into-thailand/

Continue Reading
Esports4 days ago

Here are all of CS:GO’s Operation Riptide skins

Esports3 days ago

How to start a Private Queue in CS:GO

Esports2 days ago

Can You Play Diablo II: Resurrected Offline?

Esports3 days ago

How to complete all week one missions in Operation Riptide

Esports4 days ago

Valve reveals CS:GO Operation Riptide, featuring private queue, short competitive games, new deathmatch modes, and more

Esports2 days ago

Failed to Enter Game, Character Could Not be Found: How to Fix Error in Diablo II: Resurrected

Esports5 days ago

All Fashion Week Timed Research, Finding Your Voice Special Research, and event-exclusive Field Research tasks and rewards in Pokémon Go

Esports4 days ago

Pokémon UNITE APK and OBB download links for Android

Esports3 days ago

CS:GO Riptide Case: Full List of New Skins

Esports4 days ago

Some players unable to claim Pokémon UNITE mobile pre-registration rewards due to new error

Esports2 days ago

Valkyrae says YouTube is working on gifted members and a feature similar to Twitch Prime

Esports4 days ago

5 Best Counters to Vex in League of Legends

Esports3 days ago

Initial reactions to the Worlds 2021 group draw: How does each team stack up against the field?

Esports2 days ago

Valkyrae says YouTube is working on gifted members and a feature similar to Twitch Prime

Esports24 hours ago

Fall Guys achieves Guinness World Record for most downloaded PlayStation Plus game ever

Esports2 days ago

Best Stats for the Druid in Diablo II: Resurrected

Covid195 days ago

Fintech Apps Sees a Surge in Downloads Amidst the Pandemic

Esports2 days ago

Microsoft’s The Initiative brings on Crystal Dynamics to help develop its Perfect Dark reboot

Blockchain3 days ago

United States Infrastructure Bill Brings Cardano Billionaire to Washington.

Energy3 days ago

Carbon Nanotubes Market size worth $ 20.31 Billion, Globally, by 2028 at 17.27% CAGR: Verified Market Research®

Trending