MobiCash and Boloro launched a new mobile payment solution (m-payment) in South Africa with The Big Save Group; a large wholesale operator focused on the South African townships and Spaza trade (small grocery). The partnership was announced at the World Economic Forum on Africa with the theme, “Connecting Africa’s Resources through Digital Transformation.”
Spaza transactions in South Africa remain predominantly cash. In South Africa, 52% of the adult population is unbanked; compared to an estimated 70-75% in Sub-Saharan Africa, according to the World Bank. High transaction cost, security risk associated with cash, and time wastage travelling to banks or ATMs, are all major barriers. MasterCard notes that only 2% of retail transactions in Africa are electronic.