Pan-African fintech Mukuru has launched the Mukuru Account & Card in South Africa, giving customers access to everyday banking, domestic payments and cross-border transfers through one account.
The new service could broaden access to digital financial services for Mukuru’s large customer base. It also gives customers who have traditionally relied on cash and remittance services more ways to manage their money.
The account was launched on Wednesday in partnership with Bank Zero, Paymentology and Mastercard. It allows customers to receive salaries, make electronic payments, shop online and in stores, access credit facilities and send money across borders.
Mukuru chief executive Andy Jury said the launch marks an important step in the company’s efforts to expand its financial services offering.
“For 22 years, we’ve been synonymous with cross-border money transfers, and millions of our customers have trusted us with the money that matters most to them,” Jury said.
“Together with Bank Zero, we can now give them their everyday banking too: getting paid, paying rent, shopping and sending money across borders, all from one account.”
Building on Mukuru’s Existing Customer Base
The new account builds on Mukuru’s established presence in South Africa. About 500,000 customers currently hold a Mukuru prepaid card in the country.
Mukuru has already started migrating these customers to the new account platform. The move gives existing users access to more services while creating an opportunity for the company to deepen its relationship with customers who already use its products.
Customers can send electronic funds transfers and real-time payments to other South African banks. They can also receive salaries and other incoming payments.
The account allows monthly spending of up to R150,000, equivalent to about $9,130. Customers can make online and in-store purchases and withdraw cash at reduced ATM fees.
They can also access credit facilities and exclusive discounts on cross-border money transfers across Africa.
Mukuru chief growth officer Juan Seco said the new service is designed to connect customers who still use cash with the wider digital financial system.
“Just because someone transacts in cash should not mean they have access to fewer financial services,” Seco said.
“The strength of the Account & Card is that it bridges that gap and can grow with the customer, leveraging the reach of our physical and digital networks.”
Mukuru serves more than 17 million customers across Africa. Its network includes about 320,000 service points and cash-in/cash-out locations.
The company uses this physical network alongside its digital platforms, including its app and WhatsApp channels. This allows customers to move between cash and digital financial services.
Expanding Mukuru’s Financial Services Footprint
Bank Zero provides the banking infrastructure behind the Mukuru Account & Card and holds customer funds. Paymentology provides the payment processing infrastructure, while Mastercard provides the payment network.
The partnership also supports Bank Zero’s alliance banking model. Under this approach, fintech companies and other platforms can use Bank Zero’s banking infrastructure to serve their own customers.
Bank Zero chief executive Yatin Narsai said about 500,000 Mukuru customers were being migrated to its platform. This takes the number of end customers using Bank Zero’s infrastructure above 700,000.
Bank Zero recorded its first monthly break-even in August. At the time, it had 275,000 direct customers, before the full Mukuru migration.
For Mukuru, the South African launch forms part of a wider expansion into regulated financial services.
The company holds e-money licences in Botswana, Zambia and Malawi. It also has a deposit-taking microfinance licence in Zimbabwe.
The South African launch follows the introduction of the Mukuru Wallet & Card in Botswana.
The company’s strategy is to build on its existing customer relationships and distribution network. Rather than relying only on remittances, Mukuru is adding services that allow customers to receive, spend, save and move money through a broader financial platform.
The new account therefore gives Mukuru customers more financial options while helping the company expand beyond its traditional remittance business.
