How can your business trade with the unbanked?

In South Africa, a large portion of the population is unbanked. The amount of people who own credit cards is also a barrier for online trade companies.

Banks changed the options for consumers to use debit cards with chips as online payment options. It opens up online shopping and card payments for many consumers. Operating in a cashless society is safer, so how can your business work with the unbanked?

With the rise of available Wi-Fi and no-charge apps, consumers can now use their devices to trade.

New options

The Spot Money app launched in 2021. It is an open banking platform that is not tied to a specific bank. Consumers who live in South Africa but do not have a bank account can use their devices to shop and access deals and vouchers.

It supports apps like Masterpass, Snapscan, Zapper and wiCode. There are no monthly fees, and in-app purchases and payments are free.

uKeshe app also supports a variety of services, including a digital wallet. Users get paid using a QR code. Consumers can also use it in tap-to-pay on android devices.

The benefit to these payment platforms is they do not need sophisticated smartphones to operate. Dropping the barriers to safe transacting is crucial.

Your options

As an SMME business owner in South Africa, you must consider the opportunities you can take advantage of by adding payment options to your services. If signing up for a Snapscan or Zapper service helps a consumer pay you safely, it is worth the verification and sign-up paperwork.

Products like Yoco also change how people get paid at informal trading posts, like markets and events.

It is, however, critical that you ensure that the payment options are easy and fast. Time starved consumers that can be in transit or on the go might not take advantage of the options if the payment process takes too long.

Consider what advantages your business can have if you remove the barriers to entry and payment, from the cashless to the unbanked.

Bizcash is an alternative fintech funding company that works alongside South African SMMEs to grow their business. Our online platform allows you to transact with us safely and confidently. Please speak to our team today to see how we can benefit your business.

Get in touch with us on 0861 93 93 93 or email us on info@bizcash.co.za or contact us here.

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