How Nubank’s Investment in Tyme Helps African Startups

Today, the interconnectedness of global fintech markets is improving financial inclusion, driving economic growth and supporting the exchange of new business models and innovative technologies globally. 

Not only does this promote cross-border investments and partnerships but also strengthens the resilience of the global financial ecosystem by supporting collaboration to tackle challenges such as cybersecurity threats and fraud. 

In the spirit of this, South African-founded digital banking platform has received $150mn from Brazilian digital bank, Nubank.

This investment lays the foundation for a secure collaboration that will advance Tyme Group’s international growth as a rising player in digital banking and Nubank’s global ambitions.

As a result of this support, Tyme Group will now become a leading African ‘unicorn’ - start-ups with a value of over US$1bn.

The fintech landscape in South Africa 

South Africa has an ever-changing and dynamic fintech landscape due to the need to improve access to banking services and tackle financial inclusion.

Mobile platforms are being leveraged by fintech organisations to provide online payment systems, mobile money services and digital wallets due to the significant mobile penetration rate. 

Many fintech organisations are also expanding their expertise into sectors such as blockchain solutions, regtech and insurtech to capitalise on the intensity of entrepreneurial activity.

The fintech landscape in South Africa is composed of a mix of traditional banks, such as FNB and Standard Bank, who are integrating digital solutions into app-based banking, as well as startups who are democratising access to financial tools for small businesses.

Despite this intense growth, challenges persist surrounding regulatory complexities, slow licensing processes, uncertainty around rules for cryptocurrencies and cross-border transactions.

This fragmented regulatory framework can often lead to stifled innovation, multiple barriers to entry from lengthy licensing processes, delayed growth and limited financial inclusion.

Fintech organisations must tackle this lack of regulatory coordination by establishing streamlined, flexible and innovation-friendly regulations to unlock greater growth and craft a more dynamic financial ecosystem. 

Meet Tyme

Tyme is a digital banking organisation that provides accessible and low-cost financial solutions, zero-fee debut cards and digital accounts. 

The organisation now focuses on middle and higher-income customers in South Africa and South-east Asia after initially focusing on low-income customers in South Africa. 

Tyme operates through a hybrid model of physical kiosks in retail outlets and digital-first banking. 

The digital banking organisation has is planning to open a digital bank in Vietnam and has already experienced success globally after launching GoTyme in the Philippines. 

Tyme’s investment from Nubank supports its global scalability across emerging markets, highlights the ability of collaboration to drive innovation and champions its hybrid banking model.

British International Investment has invested US$33m in total in the bank. Leslie Maasdorp, the institution’s Chief Executive Designate, states how Tyme was “demonstrating that African companies can go global”.

What will Nubank’s investment mean for the future of the fintech ecosystem in South Africa?

Nubank’s investment in Tyme will continue to catalyse the evolution of South Africa’s fintech landscape, securing its position as a hub for financial innovation. 

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