South African Payments Facilitator Hellopay in partnership with MasterCard plan to deploy SoftPOS, a contactless payment solution capable of turning any Android device into a physical point of sale resulting in a tap-on-phone payment method.
Hellopay and Mastercard launch Tap on Phone payment system for SMEs
The soon to be launched payment method aims to increase the income of small informal businesses and local SMEs.
Zunaid Miya, Managing Director of Financial Services Activities at Hello Group, comments on the rollout of the innovative new payment method.
“Eliminating the need for a dedicated terminal and allowing the merchant to use their mobile phone to accept card payments is revolutionary and game-changing in the SMME industry. Lowering the barrier to entry for merchants to accept card payments will certainly lead to a significant increase in the number of card-settled transactions. We are excited to partner with Mastercard to enable businesses such as spaza stores, independent retailers, market stall traders, mobile services and merchants to accept safe and secure contactless payments.
SoftPOS and tap the phone
SoftPOS is built on the Mastercard Tap on Phone payment service, which is an affordable digital payment technology that was created specifically for micro and small businesses such as spaza stores, market traders, merchants and those who operate in a “monetary economy”.
The Tap on Phone solution is the 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 Mastercard’s Hellopay and SoftPOS provide an effective solution.
The unique, technology-driven solution has transformed NFC-enabled Android smartphones into secure payment acceptance devices for contactless cards, mobile wallets and even smartwatches. Traditional point-of-sale mechanisms are expensive due to equipment and installation costs, SoftPOS eliminates these costs with one simple device.
Business owners can download and use the free app that facilitates the contactless payment method. According to Hellopay reports, the SoftPOS payment system is secure and intuitive, providing peace of mind to customers and business owners.
The solution is ideal for low value transactions and allows merchants to make faster payment in-store, as well as accept cash on delivery.
According to reports published by Hellopay, the solution will be tested 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 the Middle East and Africa, explains that the creation of the Tap On Phone system aims to establish financial inclusiveness 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 recognize the overwhelming pressure small business owners are currently facing and are committed to supporting them through Covid-19 and beyond by bringing our tools at low cost and fast time to market. Through our partnership with Hellopay, we can further support financial inclusion – especially among informal merchants – and help these businesses deliver new, premier contactless consumer experiences using a device they already own: a smartphone. ”
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Featured Image: Spaza Store Owner (Provided)