South African fintech startup Tappy has launched a low-cost digital payment platform to help tipped and informal workers receive instant, cashless payments. The wearable tap-to-pay device and linked digital wallet is designed to offer a simple, secure solution without the need for apps, cards or bank accounts.

The company says its solution aims to address a growing gap in the economy created by the declining use of cash as a means of payment –  a blow to workers in the informal and service sectors, such as petrol attendants, car guards, waiters, baristas and golf caddies who still rely on cash tips.

The solution combines a wearable near field communication-, or NFC-, enabled device with a linked digital wallet, allowing for contactless payment. Customers can tap their device to make a payment, without the need for an app or registering 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 Tappy co-founder West Pitt. “We’ve developed a system that makes digital payments simple for everyone, without additional hardware, apps or complex banking requirements.”

Payments are processed 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 and funds can be transferred to a bank account or mobile wallet.

Tappy explains that the solution 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, it can also be used as a point-of-sale (POS) 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.

The company says that 50 000 devices have already been distributed across South Africa as part of its initial rollout, with a target of 100 000 users in its first year. Devices will be available for sale at Dis-Chem and Studio88 stores and expansion into other African markets is planned for 2026 pending regulatory alignment.