Expanding QR payment options for informal traders in South Africa funded by $350,000 investment
South African Fintech Startup Street Wallet Raises $350,000 to Empower Informal Traders
South African fintech startup Street Wallet has secured $350,000 in funding at a valuation of $2 million. The funds will be used to deepen market penetration, fuel sales growth, and expand nationally across South Africa, targeting the informal economy[1][2][3][4].
The informal economy, which includes street vendors, car guards, township shopkeepers, and community-based service providers, is significant in South Africa, with around 3.9 million unbanked and underbanked individuals[2][3][4]. These traders often lack bank accounts or smartphones, making it difficult for them to accept card or digital payments due to unreliable data, security concerns, or lack of traditional banking access[4].
Street Wallet aims to solve this problem by offering vendors lanyard-style cards with unique QR codes linked to their Street Wallet profile. Customers can scan these QR codes to pay using trusted gateways like Apple Pay, Samsung Pay, SnapScan, Zapper, or Scan-To-Pay. Vendors receive instant SMS payment confirmations, and their earnings are converted overnight into Standard Bank Instant Money Vouchers, which can be withdrawn at ATMs or partner retailers the next day[1][3][4].
The funding round was led by undisclosed investors and will support scaling Street Wallet's sales force, strengthening partnerships, and expanding services to more informal traders. Street Wallet's founder, Kosta Scholiadis, believes that traders value speed and liquidity above all else[4].
In addition to expanding its footprint from initial cities like Cape Town and Durban to Johannesburg within 2025, Street Wallet is also developing AI-powered analytics tools to help merchants track transactions and improve business insights[3]. The investment will fuel scaling operations and broaden access, targeting tourism and wage payments alongside the informal market[3].
Street Wallet charges a 5% transaction fee in its street market segment, with reduced rates for business-to-business partnerships that bring in large user volumes[4]. Scholiadis stated that they are just getting started in their mission to build a financial ecosystem for those left out of the digital economy[4].
The South African payments space is crowded with players like SnapScan, Zapper, PayShap, Yoco, and mobile money platforms, but Street Wallet is focusing on differentiating itself by offering low-cost devices like a QR card instead of an R1,000 card machine, and quick access to cash[4].
"This funding is a strong vote of confidence in our vision to empower informal traders," said Scholiadis[4]. Street Wallet plans to grow across three verticals, including individual street traders, business-led merchant networks, and wage payments.
References: 1. https://techcrunch.com/2025/08/20/street-wallet-raises-350k-to-expand-cashless-payments-for-south-africas-informal-economy/ 2. https://www.iol.co.za/business/finance/street-wallet-raises-350k-to-expand-cashless-payments-for-south-africas-informal-economy-3f717059-8a49-4a5c-b0f7-81f84f88a614 3. https://www.bizcommunity.com/Article/196/667/213724.html 4. https://www.techcentral.co.za/street-wallet-raises-350k-to-expand-cashless-payments-for-south-africas-informal-economy/236854.html
- Street Wallet aims to utilize the $350,000 funding to expand its business technology solutions, reaching more informal traders in South Africa by scaling its sales force, strengthening partnerships, and developing AI-powered analytics tools.
- The fintech startup, Street Wallet, intends to broaden access to its mobile payment services, targeting not only the informal market but also tourism and wage payments, while offering low-cost devices like QR cards for efficient and quick transactions.
- Kosta Scholiadis, the founder of Street Wallet, envisions the company's mission to be the creation of a financial ecosystem for underserved individuals in the digital economy by offering innovative payment solutions tailored to the specific needs of informal traders.
