New Tap on Phone payment system for SA SMMEs to launch

South African payments facilitator Hellopay in partnership with Mastercard plan to roll out SoftPOS, a contactless payment solution that is able to turn any Android device into a physical point of sale resulting in the tap-on-phone payment method.

Hellopay and Mastercard launch Tap on Phone payment system for SMMEs

The soon-to-launch payment method is aimed at boosting revenue for small informal enterprises and local SMEs. 

Zunaid Miya, Managing Director, Financial Services Business at Hello Group, comments on the roll-out of the innovative new payment method. 

“Eliminating the need for a dedicated terminal and enabling the merchant to use their cellphone to accept card payments is revolutionary and a significant game-changer within the SMME sector. Lowering the barrier to entry for merchants to accept card payments is sure to result in a significant increase in the number of transactions settled via card. We are pleased to join forces with Mastercard to enable businesses like spaza shops, independent retailers, market stall traders, mobile servicemen, and tradesmen to accept safe, and secure contactless payments.”

SoftPOS and Tap on Phone

SoftPOS leverages off Mastercards Tap on Phone payment service, which is an affordable digital payment technology that has been created specifically for micro and small businesses such as spaza shops, market stall traders, tradesmen, and those who operate in a ‘cash economy’. 

The Tap on Phone solution is a result of a collaborative partnership between Nedbank, Mastercard, and SmartPesa. 

Individuals trading in an informal trading market will opt for a cash market due to the high costs of traditional point of sale devices but this is where Hellopay and Mastercard’s SoftPOS provides an effective solution.

The unique and tech-driven solution turned NFC-enabled Android smartphones into secure payment acceptance devices for contactless cards, mobile wallets, and even smartwatches. The traditional point of sale mechanisms are costly due to the equipment and set-up costs, the SoftPOS eliminates these fees with one easy device.

Business owners are able to download and make use of the free app that facilitates the contactless payment method. According to reports by Hellopay, the SoftPOS payment system is secure and intuitive, providing peace of mind for both customers and business owners.

The solution is ideal for low-value transactions and enables merchants to provide a faster checkout in-store, as well as accept payment on delivery.

According to reports issued by Hellopay, the solution will be piloted with 1 000 merchants over the next six months. Mastercard will manage the payment infrastructure to ensure it is safe and secure.

Amnah Ajmal Sharma, Executive Vice President, Market Development for Middle East and Africa explains that the creation of the Tap On Phone system aims to establish financial inclusivity for informal traders in South Africa.

“The SMME market represents 98% of businesses in South Africa and has been deeply impacted by the pandemic. We recognise the overwhelming pressure that small business owners are currently facing and are committed to supporting them through Covid-19 and beyond by bringing our tools at a low cost and rapid time to market. Through our partnership with Hellopay, we can further support financial inclusion – especially among informal merchants –and help these businesses deliver new and best-in-class contactless consumer experiences using a device they already own: a smartphone.” 

Read more: Cape Town-based fintech secures $4-million
Read more: New SA fintech launches tap-to-pay function 

Featured image: Spaza shop owner (Supplied)