Kon'nichiwa,
Victoria from Techpoint here,
Here's what I've got for you:
- A WhatsApp-powered bank card rolls out in SA
- Yellow Card gets a crypto asset licence in SA
- Starlink pauses Residential Plan orders in Nigeria
A WhatsApp-powered bank card rolls out in SA
South African fintech Mama Money, teamed up with Pick n Pay and Access Bank, has rolled out a WhatsApp-powered bank card to help people who can’t access traditional banking.
Why’s this a big deal? It’s perfect for folks in remote areas, the unbanked, or those who struggle with documentation or high bank fees.
What’s cool about the Mama Money Card? For starters, it’s super versatile. You can use it to buy airtime or electricity, deposit cash, check balances, and even freeze it instantly if lost. Plus, it works for online and physical purchases, ATM withdrawals, and sending money to over 70 countries. And all of this can be accessed through WhatsApp!
Here’s how to get it: download the Mama Money app, register, and pick up your card at select Pick n Pay branches in Joburg, Cape Town, or Durban. The card costs R99 upfront and R25 monthly, but new subscribers in November get their first month free. Sending money abroad costs up to 5%, depending on the destination.
This move not only boosts financial inclusion, Deven Moodley from Pick n Pay says it’s a game-changer for South Africa’s unbanked, breaking down barriers like limited access to bank branches.
The card is super convenient — you can freeze it instantly, make global transfers, and use WhatsApp for transactions. It’s a clever move toward financial inclusion, but there are some catches.
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The R99 setup fee and R25 monthly cost might not be so affordable for the unbanked population, and asking people to pick up the card at a Pick n Pay branch leaves out those in rural areas.
Also, while banking through WhatsApp is cool, what about security and digital literacy? Will everyone actually be able to use it safely? Or what do you think, reader?
Yellow Card gets a crypto asset licence in SA
Yellow Card, a player in Africa’s crypto scene, just snagged a Crypto Asset Service Provider (CASP) licence from South Africa’s Financial Sector Conduct Authority (FSCA). It’s a major win for the company and a sign of stablecoins’ growing popularity in Africa.
What does this mean? This means they’re now officially regulated, giving users more trust and security when using their platform. This aligns with the growing popularity of stablecoins across Africa, especially in South Africa, where their usage recently overtook Bitcoin.
Here’s why this matters: Stablecoins, pegged to fiat currencies like the US dollar, are booming in Africa. Sub-Saharan Africa leads the world with a 9.2% adoption rate, and in South Africa, stablecoin use has jumped by 50% monthly since October 2023, now outpacing Bitcoin.
Yellow Card has been making moves since it launched in South Africa in 2020. Operating in 20 countries, the company has already processed over $3 billion in transactions.
With $33 million raised in a Series C funding round announced in October, Yellow Card is all set to scale its operations, improve its tech, and drive stablecoin adoption further.
The funding follows a $40 million Series B round in 2022, underscoring the company’s growth momentum and market relevance.
With this new licence, Yellow Card is set to upgrade its B2B offerings, enhance tools like APIs for liquidity management, and keep pushing for broader stablecoin adoption across Africa.
Starlink pauses Residential Plan orders in Nigeria
Starlink, Elon Musk’s satellite Internet service, has temporarily halted new orders for its Residential Plan in Nigeria. This comes as the company seeks approval from the Nigerian Communications Commission (NCC) for a recent price hike that has stirred up controversy.
Currently, only its premium Business Plan is available, which costs a hefty ₦159,000 per month compared to the ₦38,000 monthly fee for the Residential Plan.
Demand for Starlink has been booming since its Nigerian launch in January 2023, providing fast and reliable internet in areas underserved by traditional providers.
However, the company announced sharp price increases in late September, citing “excessive inflation” as the reason. Monthly subscriptions were set to jump from ₦38,000 to ₦75,000, while the hardware cost rose from ₦440,000 to ₦590,000. This didn’t sit well with Nigerian telecom regulators or customers.
The NCC quickly declared the price hike unapproved, citing violations of the Nigerian Communications Act. Local telecom operators also criticised the move, accusing the NCC of giving Starlink preferential treatment, as they’ve faced long-standing restrictions on tariff increases.
Facing regulatory pressure, Starlink backtracked on its price hike but warned that without approval, maintaining service could be difficult.
This isn’t just a Nigerian issue; Starlink’s services have been in high demand across Africa, with reports of sell-outs in cities like Harare, Zimbabwe, shortly after launching there.
For now, the suspension highlights the challenges of balancing innovation with regulatory compliance in Nigeria’s telecom sector. Will Starlink and the NCC find common ground? Time will tell.
In case you missed it
- "We must start talking with a lot more insights" — Efosa Ojomo, Director, Global Prosperity at the Clayton Christensen Institute, on how Africa can attract patient capital
What I'm watching
- The history of our world in 18 minutes | David Christian | TED
- The “Deep State” Explained
Opportunities
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- Follow Techpoint Africa's WhatsApp channel to stay on top of the latest trends and news in the African tech space here.
Have a great Thursday
Victoria Fakiya for Techpoint Africa.
