Yoco: Digital and virtual payments projected to grow over 250% by 2028

South African fintech startup Yoco has been making waves in the payments ecosystem for over a decade. The company, known for its iconic blue card machine, has been instrumental in supporting around 200,000 businesses with its innovative payment and business tools. In a recent interview with CNBC Africa, Katlego Maphai, the CEO of Yoco, shed light on the state of the payments industry and the SME ecosystem. Maphai highlighted the resilience of Yoco amid global trade tensions and its strategic focus on expanding its product offerings to stay ahead in a competitive market. When asked about the impact of global trade tensions on the fintech industry, Maphai expressed that Yoco's customer base, primarily local businesses, has remained largely unaffected by tariffs. The company has also strategically sourced hardware from OEMs in China, avoiding any reliance on products from the US. Despite the market uncertainty, Yoco remains committed to value creation activities and supporting its community of merchants. Reflecting on the vibrant fintech ecosystem in South Africa, Maphai emphasized the significant growth and innovation the industry has witnessed in the past decade. He highlighted the establishment of the Association of South African Payment Providers and the collective efforts to address regulatory challenges and promote financial inclusion. Maphai commended the emergence of new companies catering to underserved market segments and attracting capital to drive impactful solutions. Addressing the evolving landscape of digital payments, Maphai acknowledged the increasing competition in the market and the saturation of formal sectors. He noted that Yoco's next phase of growth would focus on product diversification and ecosystem development to deepen relationships with existing customers. With a customer base of 200,000 active users, Yoco anticipates a shift towards offering additional services to enhance merchant experiences. In response to questions about supporting small and medium-sized enterprises (SMEs), Maphai shared insights from Yoco's data, indicating a slowdown in consumer spending and margin pressures across various sectors. He emphasized the need for continued support and innovation to help SMEs navigate economic challenges and leverage digital solutions for business growth. When discussing funding strategies for Yoco's expansion plans, Maphai highlighted the company's success in attracting venture capital and establishing a robust balance sheet to invest in new growth opportunities. He emphasized Yoco's focus on product innovation and its commitment to addressing customer needs through software and hardware solutions. As the interview concluded, Maphai addressed questions about potential takeover offers, stating that Yoco's strong valuation and independence position the company for continued growth and innovation. He emphasized Yoco's core strengths in software development and customer-centric solutions, positioning the company as a leader in the digital payments space. Overall, Yoco's strategic vision, focus on customer value, and commitment to product excellence underscore its leadership in the evolving landscape of digital and virtual payments. With exciting announcements on the horizon, Yoco is poised to continue driving innovation and empowering businesses across South Africa.