Sasfin and Hello Paisa have launched a new mobile banking initiative aimed at the previously unbanked or underserved market.
Supported by Sasfin’s banking platforms and infrastructure, Hello Paisa’s digital banking offering comprises an adaptable ecosystem of services, including an intuitive mobile app, mobile sim card, bank account and a Visa debit card that operates at
any ATM or POS device.
“We offer a full operable bank account that will be absolutely life-changing to our customers,” says Ahmed Cassim, MD of Hello Paisa.
He explains that the new banking offering is built on a locally-developed technology architecture that is scalable and will allow the organisation to launch multiple products.
The new banking account allows customers to pay international remittances and local bills, shop and swipe, shop online, make payments to any South African bank account, send money to a mobile number, and request money.
They can buy local and international airtime, as well as prepaid electricity and data.
Cash can be drawn from ATMs and major retailers, while payments from any South African bank account – and salaries – can be received.
Using the mobile app, customers can manage their balances and payment histories, view their statements, change their card PIN (personal identification number) and stop their card.
Nadir Khamissa, group CEO of Hello Group, points out that more than 60% of the South African population lives in informal settlements or townships.
“They do not engage in digital commerce and services we take for granted,” he says. “What if the magic of the internet could allow us to create services that improve their lives just a little bit, that uplift them and help them to create business opportunities?
“And what if we could do all of that while building a profitable business?”
The success of the Hello Group is about doing just this, he adds: “building a business that does good while doing well.”
Hello Paisa partnered with licenced bank Sasfin, to offer the mobile banking initiative.
Sasfin CEO Michael Sassoon comments: “We saw this initiative with Hello Paisa as an ideal way to offer banking to people we believe are underserved. More importantly, we have the opportunity to do so with a partner that genuinely understands the needs of its customers and has built products to serve their needs. We’re impressed by the innovative work that the Hello Group and Hello Paisa have done over the years and we’re proud to be the bank behind Hello Paisa’s latest endeavour.”
He says the companies started their relationship in 2015, with the goal of addressing the needs of the unbanked. Since then they have met regulatory requirements, built the technology and launched a product offering which will go live to the full Hello Paisa customer base and broader market in the coming weeks.
It’s not Sasfin’s first foray into the fintech environment: it launched Beyond in 2018 aimed at business customers, has made some fintech acquisitions and signed partnerships with fintech suppliers.
“Cash still represents 68% of the payments in South Africa,” Sassoon points out. “That is a huge challenge and a massive opportunity.
“Financial inclusion is more critical than ever,” he adds. “To achieve financial inclusion got to make electronic payment more attractive.”
He is confident that the new mobile banking offering will be successful, based on the traction that Hello Paisa already has in the market.
“Hello Paisa does payments for hundreds of thousands of South Africans already. Banking just seems the obvious next step.”