BlackPay, South African Fintech Startup Arrives to Rescue Marginalised Communities

BlackPay, a South African fintech startup, describes itself as a “no-frills, non-banking” multi-product platform that promotes financial inclusion for economically active but marginalized communities.

BlackPay, founded in 2017, operates a multi-product and multi-party platform that simplifies origination services in lending products and financial services. Using its developed alternative credit scoring technology, the startup has created features that address the specific needs of its market.

Initially, the company collaborated with labor unions to address financial inclusion issues in the South African labor force. However, when it began to finance property in townships and rural areas, it made a U-turn.

“With backyard finance, taxi finance, home loans, and vehicle finance, our lending products speak to different market needs.” Traditional home loan and vehicle finance competition ranges from established banks to niche players, whereas backyard finance has less competition, particularly because big institutions regard township and rural markets as high-risk,” said Nkonzo Mbetha, managing partner at BlackPay.

“With the exception of unregulated loan providers, there are no known players in the formal lending space for our Lobola, Mshado, Mcimbi, and Monate loans, making BlackPay a pioneer in the space.” According to our extensive research, there is a significant need for financial products designed to meet the needs of the majority of the South African population, with various cultural practices established within black communities.”