FinTech startup Spot Money debuts South Africans to Open Banking

By Pavithra R

In a move to bolster South African FinTech landscape, Spot Money has announced the launch of the country’s first Open Banking offering. The move follows Virgin Money South Africa’s 2020 acquisition by a leading South African private equity firm, in partnership with the local executive management team.

Central to the rebrand of the company is the launch of the latest version of the Spot app. The app is expected to debut Spot’s into Open Banking and heralds the beginning of a fundamentally different business strategy as the firm drives FinTech forward in South Africa.

The new Spot app has been developed using Mastercard’s technology, enabling Spot to issue physical and virtual Mastercard prepaid debit cards. Users can transact at any retail location that accepts Mastercard.

“There is more to the future of financial services than making current products and services digital. Spot Money will introduce South Africans to a true Open Banking marketplace. As a fintech, our aim is to service the full spectrum of a consumer’s financial needs in a single customer-centric platform, giving them the choice to transact seamlessly and review tailor-made financial offers based on their unique needs,” said Andre Hugo, CEO and Co-Founder of Spot Money SA.

“An Open Banking marketplace gives consumers more choice when it comes to managing their money. It’s a marketplace where highly personalised financial services such as loans and insurance are coupled with lifestyle services, rewards, and a wide range of value-added services,” Hugo added.

While Spot is bank neutral and will collaborate with various financial services providers, it is anchored by the banking industry and functions in association with Bidvest Bank. The new Spot app provides an intuitive mobile transactional account with no monthly account fees. It will enable direct contactless mobile phone payments, aligned with the growing adoption of contactless transactions. Customers will also be able to order, within the app, a physical Spot prepaid debit card which is tap-to-pay enabled for contactless payments.

“We are committed to leveraging our innovative product and platform suite to accelerate the fintech space in South Africa. Our strategy across the MEA region has been to drive innovation through partnerships, and we are excited to partner with Spot on the first Open Banking powered offering that provides a superior customer experience with safety and security at its core. As a technology partner of choice, Mastercard continues to develop market-leading solutions to drive digital transformation,” said Amnah Ajmal, Executive Vice President for Market Development MEA at Mastercard.

Spot also features Mastercard’s Scan to Pay functionality, enabling users to scan any Masterpass-enabled QR code in SA for the purchasing of goods and services.