Introduction

WigWag, a dynamic South African fintech startup and a subsidiary of payment service provider Stitch, has launched an innovative AI-powered payment bot on WhatsApp. Targeting the small and medium-sized business sector, this tool aims to streamline payment management processes, eliminating the need to navigate between multiple apps and browsers.

The Genesis of WigWag

Launched in September 2023, WigWag emerges as a newcomer in the payment industry, leveraging the robust infrastructure of its parent company, Stitch. Danielle Laity, the General Manager of WigWag, identified a niche in the market for simplified payment solutions tailored to startup companies, small businesses, independent contractors, and emerging social sellers. The strategic decision to utilize WhatsApp as a communication channel stems from its widespread usage in South Africa, offering a direct line to the target market.

WhatsApp as a Key Communication Channel

With WhatsApp being the preferred social media platform for 93% of South African internet users, WigWag strategically positions its payment bot to meet the needs of business proprietors and managers already active on the platform. This move aligns with the growing trend of SMEs and informal sellers leveraging social media for promotional and sales activities.

Tapping into the Growing Social Commerce Sector

Citing data from World Economics and ResearchAndMarkets.com, WigWag underscores the significant presence of SMEs in South Africa's business landscape, with a substantial number utilizing social media platforms. The projected growth of the social commerce sector further reinforces the importance of providing accessible and secure payment solutions tailored to this market segment.

Ensuring Security and Compliance

WigWag places a strong emphasis on security and compliance, leveraging Stitch's enterprise-grade payments infrastructure and adhering to the Payment Card Industry Data Security Standard (PCI DSS). The platform implements a rigorous digital onboarding process to verify the authenticity of businesses, safeguarding transactions and cardholders' personal information.

Accessible Pricing Structure

While WigWag offers free account opening, it adopts a transparent transaction fee model, starting at 2.95% for local cards. This fee structure, designed to accommodate businesses of varying sizes, reduces incrementally with increased transaction volume, ensuring affordability and scalability for users.