South African fintech Zakhaa Pay has launched the Leruo, a near-field communication (NFC) wristband designed to facilitate instant cashless payments for traders and customers in the country's vast informal sector. The device, unveiled on July 20, 2026, functions as a wearable point-of-sale terminal, enabling vendors to accept payments by tapping a customer's bank card, mobile phone, or another wearable device against the band.

The launch targets a segment where cash transactions are still predominant, despite South Africa's relatively advanced formal banking infrastructure. Zakhaa Pay's chief executive, whose name was not disclosed in the announcement, stated the product is intended to 'democratise access to digital payments' for informal traders, including spaza shop owners, street vendors, and market stall operators. The company argues that reducing cash handling can improve security and business efficiency for these entrepreneurs.

The Leruo wristband connects to a vendor's smartphone via Bluetooth, using an accompanying mobile application to process transactions. Zakhaa Pay says it supports payments from major South African banks and card schemes. The fintech, which positions itself as a payment facilitator, will generate revenue by charging a small transaction fee for each payment processed through the device.

This move comes amid a broader competitive shift in South Africa's digital payments landscape, where the cost of moving money is a persistent issue. A recent analysis highlighted that many South Africans still pay fees for basic electronic transfers, even as real-time low-value payment systems like PayShap gain traction. The system, launched by the country's banking industry, is designed to facilitate instant sub-R3,000 payments using a mobile number.

Some digital banks are now leveraging such infrastructure to compete on price. GoTyme Bank, for instance, has begun offering unlimited free instant transfers via PayShap to its customers, a strategy analysts say challenges the fee-based models of incumbent banks. 'By eliminating the fee for a high-frequency service like peer-to-peer payments, digital players are attacking a key pain point and customer acquisition lever,' noted a commentator from Africa Digest News.

For Zakhaa Pay, the challenge will be convincing a cash-reliant informal sector to adopt a new technology with an associated cost. Success may depend on demonstrating that the convenience and safety benefits outweigh the transaction fees. The company's entry also highlights the ongoing segmentation within African fintech, where solutions are increasingly being tailored for specific economic contexts, from formal banking challenges to the unique needs of the informal economy.