The South African fintech landscape is experiencing significant growth, contributing approximately 40% of Africa’s total fintech revenue. This expansion, however, is coupled with challenges for fintech companies, particularly in scaling their payment solutions and navigating the complexities of card issuance. In response to these needs and to further digital transformation and financial inclusion, Mastercard and Paymentology, a London-based global issuer processor, have significantly expanded their collaborative efforts within the region.

The core of this enhanced partnership is to equip South African fintech firms with robust infrastructure and specialized expertise to streamline the process of issuing payment cards. By combining Mastercard’s extensive global network, including its expertise in payments, security, and infrastructure, with Paymentology’s scalable card processing capabilities and cloud-based technology, the collaboration aims to simplify card issuance. This synergy is designed to enable fintechs to efficiently launch bespoke card services that cater to niche markets, including critically, the unbanked communities, thereby broadening access to essential financial services across the nation. Gabriel Swanepoel, Country Manager at Mastercard Southern Africa, emphasized their commitment to providing market-relevant solutions that empower fintech companies to scale effectively, underscoring a shared vision for an accessible digital economy. Drisha Kirkman, Head of Programme Management and Sustainability at Paymentology, further highlighted the instrumental role of their long-standing relationship with Mastercard in driving next-generation payments innovation and solidifying their joint commitment to advancing financial inclusion in South Africa. This initiative directly aligns with South Africa’s National Development Plan, which aims to achieve 90% financial inclusion by 2030.

Further strengthening the digital payment ecosystem, Paymentology has introduced PayoCard, a pioneering mobile-first card management platform specifically tailored for digital banks and fintech firms in South Africa. Traditionally, developing responsive mobile card services has been a resource-intensive and technically demanding endeavor, often requiring substantial infrastructure investments and lengthy development cycles. PayoCard revolutionizes this by offering a plug-and-play solution built on Paymentology’s secure, cloud-based platform. This innovative platform empowers card issuers to provide cardholders with a comprehensive suite of self-service features directly within a single, intuitive mobile application. These features include real-time balance updates, convenient PIN changes, the ability to freeze and unfreeze cards instantly, and direct in-app support.

For many individuals in South Africa, their initial interaction with formal financial services often occurs through disbursement or loyalty cards. PayoCard is designed to make this initial experience seamless and user-friendly through an accessible mobile app, fostering familiarity with digital tools for managing personal finances. This foundational experience can subsequently ease their transition to more sophisticated financial products. Shahez Shawana, Group Product Manager at Paymentology, noted that PayoCard addresses the current inefficiencies where basic card functions still often require physical queues or waiting on hold, aspiring to deliver a truly mobile-first experience characterized by control, confidence, and convenience for customers.

From the perspective of financial institutions, PayoCard significantly accelerates their time to market by reducing integration complexities. The platform is fully PCI DSS compliant and incorporates built-in self-service tools that alleviate the operational burden on customer support teams, simultaneously reducing costs while exceeding end-user expectations. Cardholders gain unprecedented independence, capable of managing their accounts via mobile devices without needing to visit ATMs or contact call centres for routine services. This includes checking balances, adjusting settings, and accessing assistance on demand. The burgeoning South African card payments market, projected to reach US$206.2 billion by 2029 with a compound annual growth rate (CAGR) of 6.7%, underscores the timeliness of such solutions. With 91% of the population owning a mobile phone and a rapidly increasing demand for real-time digital services, platforms like PayoCard offer an efficient and inclusive pathway for issuers to expand financial services.

The launch of PayoCard is a key component of Paymentology’s broader strategic expansion in South Africa, evidenced by their recent relocation of regional headquarters to Sandton, Johannesburg, and a growing portfolio of local partnerships. Originating from South Africa, Paymentology already supports card programmes for prominent institutions including Standard Bank, Old Mutual Bank, Mukuru, Altech, Adumo, Liberty Group, and Tyme. The reinforced partnership with Mastercard further solidifies their joint commitment to enhancing access to digital payments nationwide. This collaboration empowers banks, fintechs, and retailers to issue both physical and virtual cards more efficiently, with a strong emphasis on reaching and serving previously underserved communities, thereby driving significant progress towards comprehensive financial inclusion in South Africa.