Fintech startup Street Wallet has acquired South African startup Digitip, which allows informal workers to receive digital tips. This acquisition expands Street Wallet’s presence in KwaZulu-Natal and speeds up its goal of enabling informal traders to join the digital economy.
Street Wallet, a mobile payment system designed for South African informal traders and service providers, was founded by Kosta Scholiadis in 2021. The platform, which was created with flexibility and security in mind, connects with top digital payment gateways and enables businesses to take safe, cashless payments without the use of hardware or conventional bank accounts.
Using secure gateways like Apple Pay, Samsung Pay, SnapScan, Zapper, or Scan-To-Pay, customers can pay by scanning the code. Instant SMS confirmations are sent to vendors, and by the following morning, their daily earnings are transformed into Standard Bank Instant Money Vouchers, which can be withdrawn at partner retailers or ATMs.
To increase its market penetration, boost sales growth, and broaden its reach throughout South Africa, the startup raised US$350,000 in funding last month. In light of this, it recently purchased Digitip, which was established in 2023 to enable digital tips for unpaid laborers. The acquisition will accelerate Street Wallet’s mission to enable informal traders to enter the digital economy and strengthen its presence in KwaZulu-Natal in particular.
Street Wallet’s improved infrastructure and technology stack will now be available to Digitip users and merchants, allowing for quicker payouts, cheaper transaction fees, and a more seamless user experience.
“This is a game-changer for Digitip users and clients. Our community can now earn more through lower transaction costs, receive payouts daily, and benefit from a smoother, more advanced platform. With Street Wallet’s technology and infrastructure, the experience becomes faster, simpler, and more rewarding for everyone,” said Monica Nilsen, founder of Digitip.
“The consolidation of Digitip is a significant step for Street Wallet. Our intention is to make transacting easier and provide greater financial inclusion. We aim for our partners to join us on this journey, providing bespoke fee structures that allow traders into the banking ecosystem,” said Stephen Britto, chief operations and financial officer at Street Wallet.
