OZOW

Ozow is a fintech business that offers an Online Banking Payment solution. They are based in the heart of Greenpoint, Cape Town and Melrose Arch, Johannesburg. For six years, their platform has been assisting users to pay for goods and services via their online banking application in just a few seconds anytime, anywhere and from any web-enabled device.

This essentially gives people financial inclusion and allows them to pay for goods and services online or electronically without a credit card. Ozow allows anybody from any LSM and location to transact, without the need for a card or cash.

Ozow’s overarching strategy for the next 18 to 24 months is to promote financial inclusion in South Africa and the rest of the continent by becoming active in 8 African countries.

Tell us a bit more about your business and what it offers?

Ozow is a fintech business that offers an Online Banking Payment solution. Our platform assists users to pay for goods and services via their online banking application in just a few seconds anytime, anywhere and from any web-enabled device.

Merchants can in turn use Ozow to accept payments through a variety of payment platforms, such as SMS, eCommerce, eBilling, QR Code and instore Point-of-Sale (POS).

What important role does your company play in Cape Town, and abroad?

Ozow is committed to financial inclusion in a world where many people are disenfranchised because they cannot pay for goods or services online or electronically as they do not have access to a credit card. Ozow allows anybody from any LSM and location to transact, without the need for a card or cash.

Furthermore, Ozow is committed to making it affordable for smaller businesses to trade with the broader market, and to ensure that if traditional payment methods are unavailable, they are still able to accept payments.

When considering Cape Town, what factors made you choose to start here? Why Cape Town and what prompted the decision?

Several years ago, we realised that the ‘’tech-up’’ growth of Cape Town was gaining momentum quickly. We reached this conclusion simply by following the astonishing growth of some of the Cape Town based eCommerce leaders in Africa, for example, Takealot and Superbalist and Mr.D. There was also strong evidence to suggest (specifically Amazon entering the city in 2004 and their more recent aggressive expansion), that it was going to be the next Silicon Valley of Africa within a very short period of time.

Informed by the obvious development of CT as a tech hub (the city recently overtook Lagos in terms of growth in the sector), we decided three years ago to establish a second office in Cape Town. In retrospect, the decision has seen the business go from strength to strength. As an aside, we also made the decision at the time to allow our staff the flexibility to travel between our two offices (Johannesburg and Cape Town) often, and to select which city they wanted to be based in, while working for the company.

What do you enjoy most about operating your business in Cape Town? What are the benefits of running a business/investing in Cape Town?

What we enjoy most about operating in Cape Town is the fact that it is convenient in the sense that everything you require to run your business is situated close to where you are.

To be more specific, you don’t have the same struggle as you would have in Lagos for example, where you have only a few hours during the day to meet. Secondly, unlike Johannesburg, most of our Cape Town based clients are situated close to where we are based, meaning we do not have to travel such great distances in order to connect with them. The aforementioned, coupled with real work life balance (remarkable beaches, stunning wine farms, a rich history, wonderful entertainment etc.) make for a world class lifestyle and business environment.

A further benefit of running a business or investing in Cape Town is that it is a city that offers tremendous growth opportunities for businesses and investors and this will only increase over the next 20 years, my view is that any investor and or business owner will see a wonderful return on their investment.

What are the highlights/success stories you can share since starting your business in Cape Town?

Apart from the stellar growth we continue to experience, one of the biggest success stories is that we retain our talent in the business by rewarding our staff and encouraging a healthy lifestyle.

We are also very fortunate that Cape Town (given its diverse culture and attractions) is already home to and also attracts a wealth of international talent, making it easier for us to attract and retain the kind of staff that will see our business continue to grow.

Another highlight for us was that we were able to find a prime location for our offices that replicated the lifestyle most Parisian’s are used to, where people can walk to the local cafe’ to meet with clients. This is not a convenience that is easily realised, the only comparison we can think of in Johannesburg is for example Melrose Arch, which is where our Head Office is currently situated.

What challenges, if any, have you experienced in setting up your business?

One of the challenges we experienced in starting up our business in the City of Cape Town is that we were not able to capitalise on potential opportunities with them as we simply don’t have the right level of engagement with the representatives the City of Cape Town.

We believe our payment platform could really assist the City of Cape Town to save vast amounts of funds (which could be utilised in other areas of the provincial budget) and at the same time realise real efficiencies in terms of accepting payments for services they deliver to the local residents.

Have you had any interactions, positive or negative, with the City of Cape Town in setting up or running your business?

We have interacted with the City of Cape Town, but in all honesty, we have sometimes found it challenging to build sustainable relationships.

Recently we reached out to in excess of 400 people in government representing the City of Cape Town, and ultimately only had one meeting.

We understand that as business owners it is our responsibility to build and manage our business, but it would be fantastic if the City of Cape Town could engage with us and possibly even host an event for companies like ours which could lead to greater innovation, collaboration and synergistic business relationships ultimately for the benefit of the city and the numerous stakeholders.

How has doing business in Cape Town, or with City of Cape Town, been different to anywhere else?

We have found the physical infrastructure to be far superior to the other large cities in South Africa, this has meant that we have been able to save tremendously in terms of time and productivity when doing business. Our opinion is that Cape Town has the potential to be the top city in Africa in terms of doing business. In some ways it already is, but there are areas where unrealised potential could be developed to further enhance the city’s already stellar reputation as a growing business hub.

What’s next? What is the future of your business?

Ozow’s overarching strategy for the next 18 to 24 months is to promote financial inclusion in South Africa and the rest of the continent. Our immediate goal is to increase consumer usage of the Ozow platform to 2 million recurring users within the next 12 months and to double that in the 12 months post that period.

We already have a clear expansion strategy for Africa where we are working towards becoming active in 8 African countries within the next 18 to 24 months. It is clear that most of the African populace is unbanked and our journey into the future includes several ground-breaking product innovations that will allow consumer payments out of mobile wallets directly into business bank accounts, allowing for seamless, cashless and safe transacting.

If your best friend was on the fence about opening a business/investing in Cape Town, what would you tell them?

Cape Town will provide you with two opportunities, either to build a tech success in the fastest growing hub in Africa, or the learnings from a failed business/investment where the scenery will more than make up for the failure.