VezoPay’s Payment Rings Face Growing Competition in South Africa

Cape Town-based startup VezoPay, known for its futuristic payment rings that allow users to make contactless transactions with a flick of their finger, is facing increased scrutiny and competition as it seeks wider adoption across the country.

The company has already partnered with four major banks - Absa, Investec, FNB, and RMB Private Bank - since launching its first rings in July 2024. A fifth bank is expected to join before the end of 2026. Despite this progress, VezoPay currently faces a waiting list of around 35,000 customers whose banks aren’t yet supported.

The primary challenge lies in navigating complex banking approval processes, which can take up to nine months for each institution and require rigorous testing including international transaction tracing. While demand is clear - evidenced by hundreds of premium ring sales during Investec’s recent discount campaign - VezoPay needs to expand its network quickly to convert this interest into revenue.

Beyond South Africa

The startup’s ambitions extend beyond its home market, with pilot programs underway in Mauritius and three other African countries. Its relationships with Visa and Mastercard have facilitated these international expansions.

VezoPay’s shareholder register includes notable investors like Phuti Mahanyele-Dabengwa (Naspers South Africa CEO) and Jonathan Smit (PayFast founder), demonstrating confidence in the company’s potential.

Competitive Landscape

The payment ring market is becoming increasingly crowded, with tech giants vying for dominance. Apple has launched Tap to Pay on iPhone in South Africa, while Samsung Pay, Garmin Pay, and Fitbit Pay already support multiple banks.

This competition underscores a critical question: Can VezoPay establish its payment rings as the default wearable payment method before alternative solutions become entrenched? The startup’s success will depend on its ability to rapidly onboard new banks, expand into additional markets, and differentiate itself in an increasingly competitive landscape.