Business innovator Talifhani Banks, who shot to fame when he launched Spaza Eats in July 2023 through his company AnalyticsX, is still holding his own. With a background in statistics and econometrics and years of experience in retail, Banks identified a critical gap in the market: the underserved township and rural economies.
Despite fierce competition from established players like Checkers Sixty60 and Pick n Pay’s Asap, Spaza Eats has attracted more than 60,000 customers and 4,500 merchants in its first 14 months, a remarkable feat given the challenges of operating in these areas.
But Banks isn’t stopping there.
He envisions Spaza Eats evolving into something far greater: a “Township Amazon” that integrates point-of-sale (POS) machines, wallet-as-a-service, and loans for merchants and riders directly into the Spaza Eats app. His goal for AnalyticsX is not just to own a delivery service but to create a community marketplace and, eventually, a merchant bank.
Last year, AnalyticsX received a Third-Party Payment Provider (TPPP) licence, a significant milestone that allows it to process payments and enable customers to save their bank cards on the app. “We were approved midyear ... and it was exciting to get the news,” Banks recalled.
His team is currently integrating this solution into the Spaza Eats app, laying the groundwork for Spaza Pay, a potential merchant bank tailored for township and rural economies.
In another bold move, Banks announced the launch of Spaza Eats’ own POS machines, designed specifically for township shops. “Our Spaza Eats enterprise resource planning software allows shop owners to manage walk-in customers and online orders seamlessly,” he said.
These POS machines will record all transactions, enabling Spaza Pay to accumulate data and provide lending solutions to higher-performing businesses.
“Over time, Spaza Pay could evolve into a merchant bank. As we speak now, we’re waiting to be approved by the National Credit Regulator to become a lender for merchants,” Banks added.
AnalyticsX has the potential to make Spaza Pay a game-changing township merchant bank. With more than 4,500 merchants across various categories, the foundation is strong.
Historically, township merchants have been overlooked by traditional bank-led POS solutions, limiting digital payment acceptance. If Spaza Pay introduces lower-cost, user-friendly solutions, it could significantly improve digital payment adoption in townships and rural areas.
Spaza Pay’s deep understanding of the local township market positions it to deliver tailored solutions for micro and small merchants, potentially transforming the township merchant landscape.
The idea of Market and Fresh is to become a distributor to our merchants within the ecosystem and to big retailers nationally and internationally. The truth is farmers have always been excluded from trade, and now we want them to be part of the full ecosystem.
— Talifhani Banks, business innovator
Another advantage for AnalyticsX is the creation of Spaza Eats Market, a marketplace that facilitates trade between restaurants, farmers and retailers.
“The idea of Market and Fresh is to become a distributor to our merchants within the ecosystem and to big retailers nationally and internationally,” Banks said. “The truth is farmers have always been excluded from trade, and now we want them to be part of the full ecosystem.”
Spaza Eats Market has partnered with the National Agricultural Marketing Council, an entity of the department of agriculture. “We have more than 1,000 farmers integrated, plus 5,000 within the department’s database that we still need to bring into our ecosystem,” he said.
The potential for Spaza Pay as a merchant bank is vast. However, challenges remain.
Many township merchants fear that registering their businesses will lead to tax implications and administrative burdens. Additionally, travelling to banks or ATMs is costly and time-consuming, leading many to withdraw all their cash at once. Current digital payment options are not designed for small, survivalist township businesses. They often come with complex pricing structures, high merchant fees, and few incentives to abandon cash.
As a result, South Africa’s cash-driven township and rural economy remains underserved by mainstream financial services.
This is where Spaza Pay could make a difference.
By offering affordable, accessible, and tailored financial solutions, it could bridge the gap between informal economies and formal financial systems.
For now, Banks and his team at AnalyticsX are laying the groundwork for a merchant bank that operates like mobile money and could even evolve into a transactional bank for townships and rural economies.
“We see merchants with their own bank cards. We’ve recently partnered with Block Markets, a Crypto Asset Service Provider, which activates our wallet-as-a-service capability to run on crypto on a ratio of 1:1 with rands. With the capability to allow customers to save their bank cards on the app and also have a Spaza Card in the future, we’re building a comprehensive financial ecosystem.”
Is a township or rural economy merchant bank viable? With the right strategy, understanding of the market, and innovative solutions, Spaza Pay might just be the answer.
• Lourie is founder and editor of TechFinancials.
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