In South Africa, fintech Yoco reaches the milestone of 200,000 small business partners

The journey of the South African fintech Yoco began around 2013, driven by four founders: Carl Wazen, Katlego Maphai, Lungisa Matshoba, and Bradley Wattrus. According to information reported by the media outlet TechCabal, the company was born from a simple observation. Between 2010 and 2014, card transactions in South Africa nearly doubled, rising from 1.02 billion to 1.96 billion. Yet, small businesses remained excluded from this momentum due to the administrative and financial barriers imposed by traditional banks.

To address this challenge, Yoco officially launched its operations in October 2015, following a one-year testing phase with 500 merchants. Its first product was a small bank card reader, easy to use and adapted to the needs of micro-entrepreneurs. Today, the startup has transformed into a true technology platform that supports more than 200,000 small businesses across the country.

The startup's path was nevertheless fraught with pitfalls, particularly in convincing the banking sector and investors. With no track record in the payments field, the founders spent their first year searching for a banking partner. Mercantile Bank eventually agreed to collaborate, providing Yoco with the infrastructure necessary to process transactions. At the same time, funding was a constant challenge, with Carl Wazen admitting he spent his time seeking capital while the company sometimes had only 90 days of financial reserves.

Despite the obstacles and the withdrawal of an institutional investor at the crucial moment of the banking agreement, Yoco was able to count on the initial support of its angel investors, who injected $560,000 during the first funding round. Currently, the four founders continue their commitment to the organization. Lungisa Matshoba leads technology, Bradley Wattrus manages finances, Carl Wazen drives business development, while former CEO Katlego Maphai, who stepped down in 2025, serves as a strategic advisor.

Our perspective

The success of Yoco perfectly illustrates the capacity of African entrepreneurship to design sovereign technological solutions in the face of failures in traditional financial systems. By facilitating the financial inclusion of small merchants, who are often marginalized, this initiative strengthens the local economy and demonstrates that the continent's prosperity relies on the empowerment of its own economic actors.