It’s been a while since we heard anything from iKhokha, one of the many startups trying to bring point-of-sale (PoS) devices to the mass market. As it turns out though, the fintech outfit hasn’t just disappeared into the shadows. Instead, it’s been working on what may turn out to be an incredibly important deal.
The company on Monday announced that its card-reader PoS devices are now available for purchase in Game stores across the country.
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The low-cost payment system, developed by three Durban-based entrepreneurs, the father and son team Matt and Clive Putman, and close friend Ramsay Daly, only requiring a cellphone signal to work. Once the buyer has inserted the card, they simply then enter their pin on the device.
“Ordinary South Africans with a business idea can now walk into one of our stores and walk out with everything they need to start trading,” says Jody Forrester, cellular executive at Game: “equipment, tools, consumables, internet connectivity and a safe, cashless customer payment device.”
“We are empowering entrepreneurs in South Africa by offering them all they need to start or grow their business using the Game Store Card, which gives them the cash flow flexibility required as a startup”.
Business owners can buy the unit, or purchase it along with a SIM card and a smartphone as part of a Vodacom contract or a pre-paid option.
That ability to buy the device in a brick-and-mortar store gives iKhokha a distinct edge in an increasingly crowded market, with the likes of Yoco and Absa’s payment pebble competing directly with it.
iKhokha claims that its pricing is far below that of mainstream SME-focussed financial services products, with transactions charged at only 2.75% (excluding VAT) instead of the standard 3.5% that banks typically charge. But Putman says their device is far more than just a cheap payment device. “It provides the merchant with powerful information on their sales over time and empowers them to track and properly manage the finances of their growing enterprise.
“While cash payments can also be accepted, iKhokha eliminates the need for actual cash, which is expensive to handle, is a security risk and harder to track because it quickly gets ‘lost’ with day-to-day purchases not directly related to the business.”
“This South African developed and manufactured solution has been through rigorous international testing with regulatory bodies and card schemes to ensure world class security. “The security certifications were an important factor in our decision to partner with iKhokha,” says Forrester.
