Yoco

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Yoco
IndustryFinancial Services
Founded2015
FoundersKatlego Maphai, Carl Wazen, Lungisa Matshoba & Bradley Wattrus
Headquarters
Cape Town
,
South Africa
Websitewww.yoco.com

Editor: Charissa Cassels

Yoco is a South African payment [1] fintech company.[2] The company was launched at the end of 2015 with the idea that small businesses should be able to accept card payments irrespective of their size and maturity.[3]

The founders of the company are Katlego Maphai, Carl Wazen, Bradley Wattrus and Lungisa Matshoba.[4]

Maphai is the company’s Chief Executive Officer,[5]Wazen is the company’s Chief Business Officer,[6] Wattrus is Yoco’s Chief Financial Officer,[7] while Matshoba is the company’s Chief Technology Officer.[8]

Yoco’s strategy is to partner with small businesses at an early stage and to actively help them grow.[9] Yoco aims to open access to the market and to remove exclusivity.[10]

The company’s name is derivative of “Your Commerce.”

History

Yoco was in beta from 2014 to 2015,[11] with its first transaction taking place in October 2014.[12]

Yoco operates across South Africa with its concentration being in Johannesburg and Cape Town. It services micro to medium-sized businesses[13] and has focused on expanding access to card payments to all types of SME’s irrespective of their size, industry and location. Its mobile card readers can be used to accept payments both at the store and on the go. The application process takes five minutes online, thereafter a courier delivers the card reader to the business owner.[14]

Product

Yoco offers its customers two card-reader options; a plug-in reader (iOS only) which attaches to an iPhone or iPad’s headphone jack and a wireless card reader that connects via Bluetooth. The card readers work with a companion app that is available on iOS and Android, allowing you to process payments instantly, track your sales and send digital receipts. It offers businesses a cloud-based portal that allows them to view payments and settlements.

Once a customer has bought a card-reading device, Yoco gets the revenue from individual transactions and not monthly subscriptions (the company does not have this.) Delivery, setup and access to the app portal are included with the purchase of the card reader.[15]

The company launched Yoco Capital that provides small businesses with fast and efficient access to cash advances. In order to secure a cash advance, merchants need to log into their Yoco Business Portal to see if they have an offer, and then they can apply. If their application is successful, they will be notified within a few seconds and the funds will be transferred into the merchant’s bank account within 24 hours. Yoco Capital charges one transparent fixed fee for this that customers are aware of in advance. There are no early repayment fees, no late fees and no hidden costs. Deductions are automatic and calculated based on a fixed percentage of every card transaction that is processed until the balance is paid off.[16]

Yoco Go was launched and it is a card machine that targets previously overlooked small businesses that have not had access to card payment and PoS technologies. Yoco Go was created to lower barriers to entry for small businesses.[17]

The company has added services to its payment solutions such as point of sale software, business intelligence, accounting integrations and working capital financing.[18]

Yoco has launched several online payment solutions for merchants to sustain their cash flow during and beyond the Covid-19 lockdown that was imposed in 2020. The three new payment solutions it developed included Payment Page, Gift Vouchers and Payment Request. The three were created for small businesses to do business online and in different ways that are secure and simple.

The Yoco Online Payment Suite allows merchants to accept online payments and track and reconcile invoices or payments in person or online.[19]

Yoco has collaborated with MasterCard resulting in a rollout of 15 000 mobile points of sale devices to small to medium-sized businesses.[20]

Investments

The company has undergone rounds of funding including seed capital and seed investments from investors such as CRE Venture Capital, angel investors, Robby Hilkowitz and Greg Kidd.[21]

The start-up concluded Series-A funding round from the United States-based Quona Capital and Velocity Capital from the Netherlands.[22] Quona Capital invests in fintech innovators that are advancing inclusion in emerging markets.[23] Velocity Capital invests in fintech companies, providing early-stage capital funding.[24]

Yoco raised a total of US$7 million in funding from local and international investors by 2017.[25]

The company raised US$16 million dollars during a Series-B funding round that was led by Partech,[26] an investment platform for tech and digital companies[27] including Orange Digital Ventures and FMO to scale its operations.[28]

Awards and Achievements

Yoco announced that 10,000 SME’s across the country are now using its point of sale platform to accept card payments.[29]

References

  1. 10,000 SMEs now accept card payments with SA’s Yoco - Disrupt Africa. Retrieved 25 May, 2021.
  2. The journey so far: Katlego Maphai, co-founder and CEO, Yoco - How We made it in Africa. Retrieved 26 May, 2021.
  3. 10,000 SMEs now accept card payments with SA’s Yoco - Disrupt Africa. Retrieved 25 May, 2021.
  4. Can Yoco claim a big stake in SA’s growing mobile PoS space? - Venture Burn. Retrieved 25 May, 2021.
  5. SA’s Yoco launches free point of sale solution for SMEs - Disrupt Africa. Retrieved 25 May, 2021.
  6. Yoco: market makers, not mere market participants - News24. Retrieved 26 May, 2021.
  7. Startup Grind: 12 things we learnt from Yoco’s Katlego Maphai - Venture Burn. Retrieved 26 May, 2021.
  8. SA fintech startup Yoco to retrench staff as COVID-19 impacts revenues - Disrupt Africa. Retrieved 25 May, 2021.
  9. SA fintech startup Yoco secures $16m Series B funding - Disrupt Africa. Retrieved 25 May, 2021.
  10. South Africa’s Yoco raises $16 million to boost digital services to small businesses - Tech Crunch. Retrieved 25 May, 2021.
  11. Can Yoco claim a big stake in SA’s growing mobile PoS space? - Venture Burn. Retrieved 25 May, 2021.
  12. UCT alumnus powers ahead as one of South Africa's leading young entrepreneurs - UCT News. Retrieved 26 May, 2021.
  13. “Customer-centric” approach key to growth of SA’s Yoco - Disrupt Africa. Retrieved 25 May, 2021.
  14. 10,000 SMEs now accept card payments with SA’s Yoco - Disrupt Africa. Retrieved 25 May, 2021.
  15. Can Yoco claim a big stake in SA’s growing mobile PoS space? - Venture Burn. Retrieved 25 May, 2021.
  16. SA fintech startup Yoco expands offering with cash advance service - Disrupt Africa. Retrieved 25 May, 2021.
  17. SA fintech startup Yoco launches new card machine, opens access to wider market - Disrupt Africa. Retrieved 25 May, 2021.
  18. SA fintech startup Yoco secures $16m Series B funding - Disrupt Africa. Retrieved 25 May, 2021.
  19. SA’s Yoco launches suite of online payment solutions for small businesses - Disrupt Africa. Retrieved 25 May, 2021.
  20. Yoco partners Mastercard to bring card payments to 15k SA businesses - Disrupt Africa. Retrieved 26 May, 2021.
  21. Yoco concludes Series-A funding round, plans international expansion - Venture Burn. Retrieved 26 May, 2021.
  22. “Customer-centric” approach key to growth of SA’s Yoco - Disrupt Africa. Retrieved 25 May, 2021.
  23. Home - Quona. Retrieved 26 May, 2021.
  24. About - Velocity Fintech Ventures. Retrieved 26 May, 2021.
  25. “Customer-centric” approach key to growth of SA’s Yoco - Disrupt Africa. Retrieved 25 May, 2021.
  26. SA fintech startup Yoco expands offering with cash advance service - Disrupt Africa. Retrieved 25 May, 2021.
  27. Homepage - Partech. Retrieved 26 May, 2021.
  28. SA fintech startup Yoco expands offering with cash advance service - Disrupt Africa. Retrieved 25 May, 2021.
  29. 10,000 SMEs now accept card payments with SA’s Yoco - Disrupt Africa. Retrieved 16 July, 2021.