South African fintech startup Street Wallet has acquired Digitip, a young platform that enables informal workers to receive digital tips, in a deal aimed at expanding Street Wallet’s footprint in KwaZulu-Natal and fast-tracking its mission to bring more street vendors and casual service providers into the digital economy.
“The consolidation of Digitip is a significant step for Street Wallet,” said Stephen Britto, the company’s chief operations and financial officer.
“Our intention is to make transacting easier and provide greater financial inclusion. We aim for our partners to join us on this journey, providing bespoke fee structures that allow traders into the banking ecosystem.”
Monica Nilsen, founder of Digitip, called the move “a game-changer,” promising users faster payouts, lower transaction costs, and “a smoother, more advanced platform.”
What Does Street Wallet Do
Launched in 2021 by Kosta Scholiadis, Street Wallet provides cashless mobile payments for South Africa’s informal traders and service providers, a segment that represents an estimated 30% of the nation’s workforce, according to Statistics South Africa.
The platform integrates with trusted payment gateways such as Apple Pay, Samsung Pay, SnapScan, Zapper, and Scan-to-Pay, allowing customers to simply scan a vendor’s unique QR code to send money instantly.
Beyond speed and convenience, the system eliminates many of the traditional pain points faced by small traders.
Vendors receive real-time SMS confirmations for every payment, ensuring transparency and security, while their daily earnings are automatically converted into Standard Bank Instant Money Vouchers by the next morning.
These vouchers can be redeemed at ATMs or partner retailers, removing the need for a conventional bank account or expensive point-of-sale terminals, a critical advantage in low-margin street commerce.
Founding and Funding Capacity
Street Wallet’s business model has quickly gained traction in a country where the informal sector is valued at roughly R350 billion (US$18 billion) annually.
Recognizing the vast opportunity, the startup secured US$350,000 in August 2025 from regional fintech investors, earmarking the funds to strengthen its technology stack, enhance fraud detection, and expand its national sales force.
This infusion of capital positions Street Wallet to deepen market penetration, scale customer support, and introduce advanced analytics that help vendors track earnings and spending patterns, a level of insight rarely available to informal traders.
Digitip: Who Are They
Founded in 2023, Digitip carved out a unique niche in digital gratuities, enabling safe, cashless tipping for informal workers ranging from street performers and hair braiders to parking attendants and car guards.
The service quickly resonated in a country where an estimated seven million adults remain unbanked, according to FinMark Trust.
Digitip’s simple interface allows patrons to send tips with a few taps, giving workers who traditionally rely on loose change a modern alternative.
The platform also incorporates basic transaction tracking so users can view tipping history, providing informal earners with a rudimentary financial record that can help them demonstrate income when applying for microloans or credit.
Reason for the Deal and What It Changes
The acquisition brings together two complementary fintech solutions, allowing Street Wallet to consolidate payment services while gaining a stronger foothold in KwaZulu-Natal, one of South Africa’s key economic hubs and a gateway to neighboring provinces.
For Digitip’s users, the merger promises lower transaction costs, daily payouts, and access to Street Wallet’s robust technology, including instant settlement and bank-grade security.
“Our community can now earn more through lower transaction costs, receive payouts daily, and benefit from a smoother, more advanced platform,” Nilsen said.
For Street Wallet, absorbing Digitip accelerates the onboarding of a ready-made user base of tip-oriented earners and their patrons.
The Brighter Sides for Street Wallet
For Street Wallet, the deal is more than geographic expansion, it is a strategic diversification of revenue streams.
By adding a steady flow of micro-transactions from tipping, the company taps into a growing segment of the cashless economy and positions itself as a one-stop payment solution for informal merchants and service providers.
With the informal economy projected to grow 4.2% annually through 2028, according to the World Bank, Street Wallet stands to benefit from both higher transaction volumes and a broader merchant network.
The company also gains valuable user data that can inform future services such as micro-insurance or small business loans, creating a stronger moat against competitors in Africa’s rapidly digitizing payments landscape.
Why This Matters
South Africa’s informal sector employs over 5.4 million people, yet more than a third of adults lack access to formal banking, World Bank data shows.
Cash remains dominant, which increases risks of theft, loss, and limited credit history, factors that stifle financial mobility.
By combining their platforms, Street Wallet and Digitip aim to dismantle these barriers, making it easier for street vendors, domestic workers, and casual service providers to receive instant, secure payments and join the broader financial ecosystem.
As Britto emphasized, the merger underscores a broader national push toward financial inclusion and safer, cashless transactions in one of Africa’s largest and most dynamic informal economies, offering a blueprint for how fintech can empower overlooked communities.
