Friends build money-sending app, charging less than banks

Published Dec 12, 2022


Johannesburg – The charges that come with sending money via the various instant cash-send options offered by banks vary, but I’m sure most agree they aren’t cheap

For example, Nedbank’s Send-iMali option costs the sender R8.50 for transactions between R100 and R1 000 and R14 for amounts exceeding R1 000 right up to R2 500.

Similarly, FNB’s eWallet money-sending option charges a R10.95 flat fee for up to R3 000 per send.

This is one of the reasons why disrupters and founders of Streamz Pay, a peer-to-peer instant money-transfer app, Kyle Manganyi, 25, and Lesego Moganetsi, 26, created their app which is available for download on Google Play, App Store, and App Gallery.

Unlike other traditional solutions which charge higher transaction fees, their application charges a fixed transactional fee of R1 per transaction.

The secondary reason was the inaccessibility of ATMs in townships. The pair came up with the idea of using informal traders in the township as agents for withdrawals

“If you need to withdraw money you have to go to an ATM which may be far from your home at a garage, you can now go to your local vendor who is just around the corner from your place,” said Kyle.

Perhaps the most important reason is to allow small businesses to transact and receive payments without having to pay commission charges, as is the case with many speed-point options linked to traditional banking.

The pair met in school, they attended Mondeor High School south of Johannesburg. Their entrepreneurial spirit was already evident at the time.

“Kyle and I met in high school. Funny enough we had a mutual idea of selling snacks at school. We were two of the highest-selling people in the entire school,” said Lesego.

The pair went their separate ways after high school, with Kyle pursuing a career in software development and Lesego working in retail.

The high school friends conceptualised the idea for Streamz Pay while observing long queues at various pay points for the R350 special COVID-19 Social Relief of Distress grant.

“You would go to shops and you would find crazy long lines, especially at the Post Office, where you would find crazy long lines of people trying to withdraw their R350.”

“So what we thought was that if we had an alternative solution… Let’s say the government was actually depositing money through Streamz Pay, they could add it to the Streamz Pay Wallet and these people would be able to withdraw their money from their local vendors,” said Kyle.

They started working on the solution in late 2021 and launched the app that went live two months ago, and they’ve used the period to conduct market research.

Additionally, the app has value-added services such as the ability to purchase airtime, pay municipal accounts and purchase prepaid electricity, creating a one-stop shop ecosystem.

Kyle and Lesego are also passionate about creating employment for others, particularly individuals from previously disadvantaged backgrounds.

“We are currently hiring right now. We are looking for field agents just to capture as many vendors as we can because we are just in the south of Johannesburg and there are a lot of vendors out there who need Streamz Pay.

“I firmly believe in ‘each one teach one’. We want to hire people that are less privileged and whom we want to give opportunities to. It makes no sense hiring friends who are well off,” said Lesego.

Lesego highlighted the importance of young South Africans starting businesses and side hustles.

“It is crucial for people to take up entrepreneurship. The repo rate just went up, the cost of living is incredibly high. I myself have a lot of retail experience and trust some of the people working in those retail stores are not getting paid enough. Most of that money goes to transport.

“So it is extremely important, it does not have to be something that involves rocket science. People who are selling kotas (bunny chow) are making a lot of money, as are people fixing shoes,” Lesego said.

“For us, it is important to change people’s thinking. Get out of the mindset of a nine-to-five, be your own boss,” he added.

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