Performance evaluation of FinTech applications in emerging market economies: a case of TelPay

Mvelase, Sibusiso Kenneth
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The financial industry is at the receiving end of the anxiety that comes with the influx of FinTech, especially in the emerging market economies. This is because FinTech is globally restructuring the perception of people and businesses towards financial services product and services. There are so many benefits attached to FinTech (including ability and efficiency in addressing transaction cost and information asymmetry while providing financial services) that have escalated its global acceptance and usage. Despite the identified benefits of FinTech most academic and policy research focus more on FinTech disruption of the financial institutions, rather than the performance of the FinTech start-ups. Though the research on FinTech disruption requires attention, it is also vital to assess the efficiency of the FinTech companies already in operation, especially in Africa where technological infrastructure could be on a minimal supply. Therefore this study assesses the performance of FinTech, focusing on TelPay, a FinTech start-up that is spreading fast within the African markets, with the intension of getting into other emerging market economies. TelPay users (15) and developers (2) were interviewed, analyzed through content analysis using word could. The word cloud clearly show following characteristics of TelPay; affordability ease of usage, good performance, flexibility, fast, loan, credit, etc. This result posits that people were attracted to TelPay due to its affordability, along the line, they found that the app is unique, the process is easy and flexible, and the functionality is efficient and precise. The result also shows that TelPay has been an enabler of financial inclusion in the three countries of its current operation. According to the respondents, TelPay has created a door-way to financial inclusion in their countries, by creating inclusiveness to the lowincome earners, through access to credit. The study also concluded that TelPay will definitely survive in Africa, especially if it maintains and/or improves on the quality of the services it currently offers.
A research report submitted in partial fulfilment of the requirements for the degree of Master of Management in Finance and Investments to the Faculty of Commerce, Law and Management, University of the Witwatersrand, 2022