South African fintech startup Entersekt has raised a “multi-million dollar” funding round to fund its international expansion as well as research and development. Founded in Stellenbosch, Entersekt offers authentication systems for online and mobile banking services, with its flagship product Transakt enabling a one-touch user experience.
"The entire payments ecosystem has seen revolutionary change in recent years, with new technology, digitisation, and new business models creating disruption and disintermediation across the value chain."
The data shows fintech startups are spread across the African continent, with the Southern, West and East African regions equally active, while North Africa lags behind. South Africa is the top destination for fintech startup activity – home to 31.2 per cent of the continent’s fintech startups – while Nigeria and Kenya follow in second and third place respectively.
SWIFT gpi will not only deliver a much-needed improvement in the speed of transaction, but also improve overall customer experience by creating predictable settlement times and clear statuses, through additional information on remittances and transparency around the FX rates and fees applied throughout the payment cycle.
Industry analysts say corporates can benefit from tapping into disruptive technology developed by African startups.
Marc Recker, Head of Market Management, Institutional Cash Management, Deutsche Bank talks about the future of Correspondent Banking and Cross Border Payments in the Financial Institutions market. He offers his views on the issues of managing compliance, risk and transparency, the digital economy and and the imminent launch of Swift’s gpi initiative.
Early-stage incubator Digital Financial Services Lab (DFS Lab) has announced it is investing US$250,000 in four African fintech startups that are building products that help low-income consumers in developing markets.
SWIFT invites FinTech companies from around the world to develop new overlay services that leverage its SWIFT global payments innovation platform. SWIFT will provide funding of up to 200,000 EUR for the two winning FinTech finalists of an Industry Challenge. The FinTech winners will work with banks on collaborative innovation concepts that solve additional industry challenges in cross-border payments on top of SWIFT gpi.
ACI Worldwide, a leading global provider of real-time electronic payment and banking solutions, and Alipay announced that they are launching Alipay in South Africa, via leading regional payment service provider Peach Payments.
Adoption by financial institutions in Europe of virtual account management (VAM) technology reflects a fundamental transformation in the current model of global cash management. Whereas the traditional cash management model involves sophisticated cross-border multi-currency pooling structures and sweeping techniques to physically consolidate cash, the new model uses virtual account structures to segregate balances virtually and enable real-time global cash management under native cash pooling where possible.
African startups BitPesa, Paga, Paystack, Yoco and Zoona have made it onto the Fintech 250 list compiled by research firm CB Insights, which selects the best global fintech companies based on a set of criteria.