Johannesburg
– Big four bank Standard Bank has bought a majority stake in Firepay – the team
behind SnapScan.
In
a statement on Friday, the bank said the deal – for an undisclosed amount – was
“testament” to its commitment to innovation.
Firepay
launched in 2013 to take advantage of mobile payments technology and is an
app-based solution to carrying around cash or credit cards.
A
year after launch, Firepay, in partnership with Standard Bank, launched
SnapScan to allow customers to pay for goods and services using only their
mobile phone.
SnapScan
now has more than 32 000 merchants signed up, as well as what it calls a vast
user network across South Africa, according to its website.
The
app supports credit cards and most debit cards from any local bank, as well as
3D Secure-enabled international bank cards.
To
make a payment using SnapScan, you call up the app, scan in the merchant’s QR
code (QR stands for quick response, and the code looks like a mosaic bar code),
enter the amount payable, enter your unique PIN and hit “pay”.
Read also: Startup gets partnership nod
World
Wide Worx MD Arthur Goldstuck says it makes sense for Standard Bank to buy the
stake as it is a growth industry. In addition, he says, the bank is shoring up
its own efficiencies.
“Mobile
payments make so much sense; they just make the process seamless.”
Standard
Bank SA head of card and payments Lincoln Mali says the deal shows the bank’s commitment
to innovation and working with industry leading fintechs to bring relevant
solutions to customers.
Goldstuck
says the mobile payments industry is very competitive locally, and becoming
more so, although it is dominated by SnapScan. He says other notable players
include Zapper, while Yoco is making inroads.
Goldstuck
adds “everyone is keeping a close eye on the space to see where they can play”.
Standard
Bank says SnapScan will continue operating as normal, with the Firepay team
staying onboard to grow the product, so there will not be any disruption to its
services.
In
addition to SnapScan, the Firepay team’s technology platform also enables
payments for several clients, including WeChat and Masterpass. It will continue
to develop and expand its offering to provide a range of product development
and payments services.
Firepay
CEO Kobus Ehlers says the team is
excited to work with Standard Bank to “solve the real-world payments
problems we have always focussed on”.
BUSINESS
REPORT