South African fintech Street Wallet acquires Digitip to enable informal workers to receive digital tips, lower transaction costs, accelerate payouts, and deepen financial inclusion across KwaZulu-Natal.
Highlights (3 Points)
-
Acquisition of Digitip by Street Wallet – Digitip’s digital tipping solution, serving informal service providers and tip-dependent workers, is now part of Street Wallet’s platform.
-
Improved payout speed and cost efficiency – The integration promises daily payouts, lower transaction fees, and smoother digital tipping operations for users who previously relied on cash.
-
Strengthened financial inclusion for informal workers – The move aligns with Street Wallet’s mission to empower street vendors, SMEs, and informal labour across South Africa, especially in KwaZulu-Natal province.
Summary Story
Street Wallet, a mobile payments fintech based in South Africa, has acquired Digitip, a start-up specializing in digital tipping solutions for informal workers. Digitip allows service providers—such as street vendors and individuals dependent on tips—to receive digital gratuities, helping reduce dependence on cash.
This acquisition follows shortly after Street Wallet raised $350,000 in funding, valuing the company at over $2 million USD. The deal enhances Street Wallet’s offering by enabling faster, daily payouts and bringing down transaction costs for tip recipients.
Additionally, the acquisition expands Street Wallet’s presence in KwaZulu-Natal, bolstering its capabilities through the integration with ABSA CashSend (a money-transfer service of Absa Bank), thereby improving access for informal traders who may lack bank accounts or smartphones.
Overall, acquiring Digitip is a strategic step for Street Wallet to deepen financial inclusion among informal workers in South Africa, streamlining how tips and casual payments are made digitally.
