MICROCAPITAL BRIEF: Lipa of South Africa Offers Banks Tap-to-pay Service Allowing Informal Merchants to Accept Cashless Payments

Lipa Payments, a financial technology (fintech) firm based in South Africa, is rolling out its flagship digital “tap-to-pay” service, which allows merchants in Africa’s informal sector to accept cashless customer payments using mobile phones, rather than point-of-service terminals. The service, which Lipa is introducing via financial institutions in Nigeria and South Africa, integrates Bluetooth technology for phone-to-phone payments and near-field communication (NFC) technology for card payments.

Lipa Co-founder Roger Bukuru reportedly said, “Merchants run the risk of running out of cash during business hours, and there are security risks when managing cash. The Lipa Payments solution improves the experience for informal traders by moving their businesses forward with digital payments.”

Lipa was established in 2019 with “a desire to solve the problem of informal areas not having access to adequate and safe payment systems in a digital age.” Among the firm’s investors is Imvelo Ventures, a South African fund that placed USD 650,000 in Lipa in 2020.

By Sheen Gupta, Research Associate

Sources and Additional Resources

Tech Economy article
https://techeconomy.ng/2022/02/fintech-startup-lipa-payments-offers-digital-payment-solutions-for-africas-informal-sectors/

Lipa Payments homepage
https://www.lipapayments.com/

Imvelo Ventures homepage
https://imvelo.ventures/

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