Peach Payments, a South African Fintech startup, has announced that it has received an investment from UW Ventures, in partnership with Allan Gray. The Fintech startup has said that it will be using the funds raised for growth and expansion into the rest of Africa.

Peach Payments' founders have said that they will use the funding to accelerate product development and extend market reach as well as expand the company into the rest of Africa.

β€œWe see significant revenue growth even during this crisis. This is being driven by the acceleration of consumer adoption of e-commerce and by developing more localized products for African merchants. Our relationship with UW Ventures and Allan Gray will further our ambition to help drive the growth of digital commerce in Africa," said Rahul Jain, co-founder of Peach Payments.

Founders of Peach Payments. Andreas Demleitner and Rahul Jain.

Rise of Fintech startups in South Africa

The past five years have seen an interesting rise of South Africa's Fintech startups. Both in the funds, they have been able to raise as well as their growth both in South Africa and beyond.

Particularly the discussion has moved from discussing the merits of card vs mobile payments towards the rapid development of mobile phone payment solutions. Apart from Peach Payments, there has also been startups such such as SnapScan, Zapper and Wicode.

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With the social distancing measures that have become necessary as a result of the coronavirus disease 2019 (COVID-19) pandemic, mobile payment solutions in South Africa are positioned to capitalize on this. One such use case is smartphone apps linked to our cards will change the nature of card usage, as customers get more comfortable using their phones for payments.

Enabling South African businesses to transact online

Peach Payments provides online payment solutions and it has a significant market share in South Africa's enterprise space, along with what they report to be a fast-growing SME base. They have reported that in February 2020 alone, their monthly customer acquisition grew by 400%.

β€œWith this funding, we’ve expanded to include support for new platforms such as Xero and Wix – to make it easier for African startups and SMEs to easily take their business online,” said Andreas Demleitner, co-founder of Peach Payments.

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So far Peach Payments has been growing revenue beyond 100% per annum and has established a presence in both Mauritius and Kenya, with further market expansion planned over the medium term.

As a South African first, Peach Payments now allows entrepreneurs to use the popular Wix platform to build online businesses with market-leading card processing and EFT solutions.

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