With the aim of rolling out 700 POS terminals, the partnership between Mastercard SA and iKhokha will seek to bring digital payment services to informal settlements.
iKhokha, a digital payment service which specialises in the manufacturing of POS terminals, has partnered with Mastercard SA to improve card payments at micro, small, and medium businesses. These terminals will be rolled out to spaza shops, taverns, food outlets as well as hair and beauty salons. Areas to receive the units include KwaMashu which is situated north of Durban as well as Ladybrand in the Free State.
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“We are focusing on businesses at the main trade and transit points where volumes of people are high and cash-related crime is a serious problem,” said managing director of iKhokha, Matt Putman in a press release. “We explain to entrepreneurs that they can grow their sales with iKhokha and then gain access to unsecured capital for growth needs,” said Putman. “If customers would prefer to pay with a card, then it’s time to move beyond cash only acceptance.”
iKhokha’s payment platform includes “card present payments” and “card-linked QR code payments” which run through Masterpass, a digital payment service of Mastercard.
Mastercard and iKhokha will also be providing SMEs with literacy materials at “financial wellbeing workshops” to be run by representatives of the community.
“While the number of South Africans with access to formal financial products has increased significantly over the last five years, the true potential of electronic payments is going to remain dormant unless payment cards are accepted at the stores and outlets where the newly banked would normally shop,” said division president for Mastercard SA, Mark Elliot.
“Our association with iKhokha not only extends financial inclusion to merchants and consumers, but educates them on the benefits of using payment cards instead of unsafe and costly cash,” concluded Elliot.
Featured image: Chris Eason via Flickr
