Spot Money has debuted what it calls SA's first open banking offering, in a move that followed the 2020 acquisition of Virgin Money South Africa by a local private equity firm, in partnership with the local executive management team.
On its Web site, Virgin Money says it has changed its name to Spot Money.
Key to the rebranding of the organisation is the release of the latest version of the Spot app, that Andre Hugo, the company’s CEO, describes as "a significantly revised offering" that "heralds the beginning of a fundamentally different business strategy" as Spot Money drives fintech forward in SA.
“We've been working on Spot Money for over two years, and are really excited about the launch today. It’s a convergence of three trends or solutions in the marketplace consolidating into one super app, namely payments digital banking, and a marketplace,” says Hugo.
Open banking
According to him, there is more to the future of financial services than turning existing products and services into digital ones. “Spot Money will introduce a true open banking marketplace in SA. As a fintech, our aim is to service the full spectrum of a consumer’s financial needs in a single customer-centric platform, giving them the choice to transact seamlessly and review tailor-made financial offers based on their individual needs.”
He said an open banking marketplace brings enables consumers to manage and control their money in a completely new way, giving them more choice when it comes to managing their money. “It’s a marketplace where highly personalised financial services such as loans and insurance are coupled with lifestyle services, rewards, and a wide range of value-added services.”
While Spot is bank-neutral and is partnering with several financial services providers, it is anchored by the banking industry and functions in association with Bidvest Bank. In addition, the new Spot app was developed using Mastercard’s technology, enabling Spot to issue physical and virtual Mastercard prepaid debit cards, which allow users to transact at any retail location that accepts Mastercard.
No monthly fees
The Spot app brings a mobile transactional account with no monthly account fees. It will enable direct contactless mobile phone payments using Mastercard’s tokenisation technology, and customers will be able to order, within the app, a physical Spot prepaid debit card which is tap-to-pay enabled for contactless payments.
Moreover, Spot features Mastercard’s Scan to Pay functionality, which allows users to scan any Masterpass-enabled QR code in SA for the buying of goods and services. According to Hugo, Spot is the only app that gives customers the ability to Scan to Pay all of the major QR code payment types, namely Masterpass, SnapScan, wiCode and Zapper.
Mark Elliott, division president of Mastercard, Southern Africa says fintechs are playing a critical role in solving pain points and creating opportunities here in South Africa, through seamless experiences.
“Fintechs like Spot Money are bringing value, choice, and importantly utility to consumers, all of which really spurred the adoption for digital payments. We are very excited to partner with Spot Money in a move that will further accelerate innovation in South Africa, and give consumers more choice in how they pay and manage their money.”
“The way in which traditional banks and financial technology companies interact with one another is changing dramatically as open banking becomes the norm. We are poised to develop Spot Money as a major part of this evolution in South Africa,” concluded Hugo.
Spot Money’s app is now live on all major app stores: Apple, Huawei and Google Play Store.
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