South African fintech startup – Tappy - has launched a low-cost digital payments platform that allows tipped workers to receive instant cashless payments. The rollout begins in December 2025, with 50,000 devices already distributed across the country. 

Tappy addresses a growing gap in the economy where many consumers are going fully cashless, yet millions of workers in informal or service sectors still rely on cash tips. Using a tap-to-pay wearable and digital wallet, Tappy provides a secure, app-free solution that enables tipping and small payments without cards, apps or bank accounts.

As cash use declines, workers like petrol attendants, car guards, waiters, baristas and caddies are increasingly excluded from everyday transactions. Tappy’s solution is built for them. It combines a wearable NFC-enabled device with a linked digital wallet, allowing customers to tap their phones and pay in seconds. There’s no need for the customer to download an app or register an account.

“Tappy solves a real-world problem: how do you tip someone when you don’t have cash, and they don’t have a card machine?” says West Pitt, co-founder of Tappy. “We’ve developed a system that makes digital payments simple for everyone, without additional hardware, apps or complex banking requirements.”

Payments are processed instantly through Visa and Mastercard networks, with compatibility across Apple Pay, Google Pay, Samsung Pay and Tappy Pay. Earnings reflect immediately in the user’s Tappy Wallet, where balances and transaction history are visible in real time. Funds can be pushed to a bank account or mobile wallet within seconds.

Tappy has been approved by the South African Reserve Bank, and all transactions are encrypted end to end. No personal data is stored on the device or shared during payment, and the system is designed to work reliably even in low-connectivity environments.

While tipping is the platform’s first focus, Tappy is also positioning itself as a cost-effective point-of-sale solution for small businesses and informal traders. By removing the need for traditional POS hardware, the company estimates it can reduce transaction costs by up to 96% and cut payment times significantly.

Devices will be available for sale at Dis-Chem and Studio88 stores from early 2026, with the company targeting 100,000 users in its first year. Expansion into other African markets is planned for 2026 pending regulatory alignment.

Tappy enters a market where millions of South Africans work informally, outside the banking system, and rely on tips or daily payments to survive. As the country moves toward a cashless economy, digital exclusion is becoming an economic threat. Tappy offers a scalable, low-friction solution to help close that gap before it becomes a full-blown crisis.

“If the future of money is digital, then it must include everyone,” Pitt says. “This isn’t just about innovation. It’s about survival for people who earn in coins and notes but are being pushed out of the system. Tappy is here to keep them in the economy, not outside it.”