Digital payment platform SOLmate has more than doubled its customer base and its eWallet transaction volumes have grown by up to 500% over the past year, which it says highlight how digital wallets are driving financial inclusion and empowering underserved communities.

The rapid adoption of SOLmate’s digital wallet reflects a broader shift in consumer behaviour, as more South Africans seek alternatives to traditional banking, says COO Jonathan Holden.

Digital wallets, like SOLmate’s, are playing a pivotal role in driving financial inclusion, particularly in a country where access to affordable and empowering financial services remains a challenge for many.

“Over the past 12 months, we’ve seen extraordinary growth with a 300% increase in card swipes and automatic teller machine withdrawals, a 200% rise in electronic fund transfer transactions, and a 500% surge in our eWallet service, which allows users to send money directly to a mobile number.

“This growth is a testament to the improved service and interface we launched in late November, which has been warmly received by our customers,” he says.

In rural areas, where access to traditional banking infrastructure is limited, SOLmate’s eWallet service has been transformative. Families receiving remittances from urban areas or abroad can now access funds instantly and securely, without the need for costly and time-consuming travel.

This improves their financial wellbeing and contributes to local economic growth, says Holden.

Further, small businesses, particularly those in underserved communities, are also benefiting from SOLmate’s digital wallet solutions. With low-to-no transaction costs, these businesses can access formal financial services, establish financial identities and participate in the digital economy.

This, in turn, enables them to grow, create jobs and contribute to poverty reduction, he says.

“We’ve seen how digital wallets can empower citizens by providing them with the tools they need to thrive.

“From enabling seamless transactions to offering access to savings and services, our platform is designed to support economic growth at every level and make financial services more accessible, affordable, and empowering for all South Africans,” he adds.

Meanwhile, South Africa boasts a high level of formal financial inclusion, with 91% of adults having access to financial services, according to a 2020 National Treasury report.

However, access alone is not enough. For many, traditional banking services come with high costs, inefficiencies, and barriers that disproportionately affect low-income earners. Digital wallets bridge this gap by offering a low-cost, secure and convenient alternative, he says.

“Digital wallets are more than just a payment tool; they are a gateway to financial empowerment.

“Our solution is easy to apply for, easy to use, and designed to be secure and reliable. By providing affordable and accessible financial services, we’re helping individuals and small businesses participate in the digital economy, save, invest and build a better future,” says Holden.