Cash in a Flash: TymeBank expands withdrawal service to 1000s of informal businesses

TymeBank has announced a partnership with payments solutions provider Flash, to enable more under-served customers to withdraw cash.

The digital bank already provides a withdrawal service with its own kiosks at various retailers, but this fintech collaboration involves the merchants themselves..

The deal will make it possible for TymeBank clients to withdraw money at over 172,000 spaza shops and traders across the country.

As a result, it now offers more cash withdrawal options and locations than any other bank in South Africa, the digital bank says in a press release.

“While TymeBank supports the country’s shift to a cashless society, the reality is that cash is still used extensively in our communities and the informal market.... TymeBank customers can withdraw cash from a convenient location, reducing time and money spent travelling."

Greg Illgner, Chief Strategy Officer - TymeBank

In conversation with Bruce Whitfield, chief strategy officer Greg Illgner says a withdrawal will cost a customer R7 - less than the fee charged for an ATM transaction.

While they've invested in their own technology infrastrucutre as a digital bank, in this case they're leveraging the fact that Flash have got their own 'little boxes', he explains.

"It looks a lot like a point of sale device, through which they sell airtime and electricity and other vouchers. It allows pretty much anyone with a phone to just dial a number... and generate the Flash Cash voucher, for which the merchant will hand over cash."

"The lion's share of the R7 goes to the merchant. That's because they have to hold cash on their premises and it takes some risk.. so they're providing a service; instead of selling mealie meal they're selling cash."

Greg Illgner, Chief Strategy Officer - TymeBank