The South African fintech startup Lipa Pay has launched its tap-to-pay application to enable small merchants to receive mobile payments from virtually anywhere with a WIFI or 4G connection.
In Africa, mobile payments are all the rage, and enable the continent to formalize its economy at the speed of light. The issue resides with the fact that many mobile phone users possess low-end mobile phones, which is the issue that Lipa addresses. The startup also promises a to deliver its solution in a low-cost manner to make it an attractive solution for small merchants.
Lipa, which means “Pay” in the Kiswahili language, was founded in 2019 by Roger Bukuru and Thando Hlongwane. In 2020, the startup raised $650,000 from Imvelo Ventures, and right after it launched its tap-to-pay solution in 2020, Lipa raised another $650,000, again from Imvelo Ventures, a fund backed by Capitec Bank (although our sources may have it confused and there may have been just 1 investment round from Imvelo).
The South African startup LipaPay should not be confused with the Kenyan startup Lipa Later which offers a a buy now, pay later solution in Eat African countries.