Absa Bank, a member of the South African financial institution Absa Group, introduced the digital wallet ChatWallet to improve financial access in the country. With the backing of the leading financial institution in the country, ChatWallet is designed to provide the unbanked and the underbanked with direct banking services. Customers can now access basic banking options and manage their finances. The wallet is available to both individuals and businesses alike. 

In recent years, Absa launched several innovative banking options within social media, including the ChatBanking platform on Facebook and WhatsApp in 2018. WhatsApp, however, remains the most popular platform in the country, attracting over 90% of internet users, and is expected to have a user base of 28 million by 2026.

ChatWallet offers end users various services, including money transfer, airtime, and data purchases, managing beneficiaries, conducting cash withdrawals and deposits, and even buying electricity. It also offers a layered security outfit with PIN access, biometric registration, and MFA for verification. To apply, users must be 18 or older, possess a valid South African ID number, and a RICA cellphone number linked to WhatsApp. Fees vary. The company has operations in several other African countries. 

Why does it matter?

According to the data on the World's Most Unbanked Countries, 38% of the South African population is unbanked, a situation made worse by an internet penetration rate of 56%. Countries considered worse off are located in Africa and the Middle East, where, on average, 50% of the population is financially excluded.