A large amount of South Africa’s economic activity flows through its informal sector, with over one million street vendors playing a vital role. Yet, as the country shifts toward a more cashless society, many of these vendors remain excluded from the digital economy.
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Street Wallet, founded by Cape Town-based entrepreneur Kosta Scholiadis, aims to bridge this gap through a practical fintech solution. By enabling secure, cashless payments via QR codes and an interoperable system, the platform empowers vendors to receive payments without smartphones, data, or traditional bank accounts.
Bizcommunity spoke with Scholiadis to unpack the tech behind Street Wallet, the barriers informal traders face, and how low-tech innovation can drive meaningful financial inclusion in South Africa.
What inspired the creation of Street Wallet, and what problem were you aiming to solve for South Africa’s street vendors?
In South Africa, almost everyone has had the experience of wanting to tip a car guard or pay a street trader, only to realise they don’t have any cash. The problem became even more acute during Covid, when the shift away from cash accelerated.
One night after dinner, we decided to put this to the test: if the car guard couldn’t accept SnapScan or similar digital payments, we’d build a solution. He couldn’t. So we started Street Wallet with a simple mission: to ensure that no street transaction is ever rejected again with the words, “Sorry, I don’t have cash.”
What key challenges have you faced building fintech for the informal economy?
Building fintech for the informal economy comes with unique hurdles. Data is scarce, smartphones are not universal, and many traders don’t have bank accounts. We had to create a solution that caters to two very different worlds: the customer’s need for a smooth digital experience and the trader’s need for something simple, low-cost, and familiar.
That meant prioritising SMS communication, eliminating the need for apps or logins, and ensuring that vendors could get paid without needing smartphones or internet access.
How does Street Wallet work, especially for vendors without bank accounts or smartphones?
Each vendor receives a low-cost card on a lanyard with a QR code linked to their personal Street Wallet page. Customers simply scan the QR code and pay using Apple Pay, Samsung Pay, SnapScan, Zapper, or Scan to Pay. Once the payment is made, the vendor receives an SMS confirmation.
No data required! The next day, all the vendor’s earnings are converted into a Standard Bank Instant Money Voucher sent by SMS. The vendor can withdraw cash instantly from an ATM or eight nationwide retailers, without a bank account or smartphone. It’s the simplest way to turn card payments into cash, fast.
You’ve partnered with several NGOs; how important are these partnerships in driving adoption and impact on the ground?
Our go-to-market strategy has had three strong pillars: partnerships with NGOs, direct business relationships with companies that can’t afford costly card devices, and street-level onboarding through our website. NGOs play a key role in helping us reach underserved communities and build trust.
We’ve also been deeply encouraged by individuals across South Africa who have volunteered to help us onboard car guards in their own communities. It’s a beautiful validation that people believe in what we’re doing and want to be part of it.
What feedback have you received from vendors?
The feedback has been incredibly positive. Vendors are earning more overall, simply because they no longer lose customers who don't carry cash. They can still accept cash when it’s offered, but now they also capture payments that would have otherwise been lost. And in tipping scenarios, where R10 was the norm in cash, we’re seeing average digital tips of R30.
How do you build trust around digital payments in traditionally cash-based communities?
Trust is built through consistency and speed. We don’t make traders wait two or three business days for their money like traditional card machines. We pay out by the next morning with no bank account needed.
That kind of instant liquidity is critical when you rely on daily income to buy stock or support your family. It shows people that digital payments don’t mean waiting or uncertainty. Our payments are just as real as cash, only more convenient for both customers and vendors.
What advice would you give to entrepreneurs creating tech for underserved markets?
Always start with data. In underserved markets, people often live on airplane mode to save battery and data costs. SMS is more reliable than email, and simplicity beats slick UX. If your solution depends on push notifications or constant connectivity, it probably won’t stick. Build around low-data, high-reliability channels first. That’s where the real opportunity lies.
