Payment processing in South Africa is a huge issue for many readers of Zapreneur. As readers of Zapreneur will know, I hardly ever provide space for financial products because I believe that our financial institutions are one of the biggest constraints on small business development. Beyond offering critique, Zapreneur will profile alternatives that offer “something” that begins to put the power back in the hands of entrepreneurs.
Today we chat to founders of iKhokha, Ramsay Daly and Matt Putman. A product like iKhokha offers an alternative to the big banks, and offers a way to process both debit and credit cards. This is huge as it allows businesses not wanting to run on credit cards to process debit cards, at reasonable payment processing rates. In sum, iKhokha offers a competitive pricing structure and allows small businesses to begin using new and innovative ways of charging customers. We asked the founders a couple of questions about the product and what it offers.
iKhokha looks like an excellent product. Our readers might not know about what iKhokha does. Please give us your elevator pitch?
iKhokha enables any business formal or informal to be able to process card payments through their smartphone, by inserting our Edge adapter into your phone and downloading the iKhokha app, SME’s can turn their phone into a Smart Speedpoint device. Businesses follow the straight forward online sign up process at www.ikhokha.com, and once approved entrepreneurs and businesses alike will be able to benefit from the additional services embedded in our mobile app. We cater for both Android and Apple devices. The Edge device also has the highest level of international accreditation.
(Editor’s Note: The video of Piet the Plumber is worth watching as it provides a cool story of iKhokha in action).
How does this benefit businesses in South Africa?
It allows them to take a secure card payment anywhere, anytime driving additional sales and removing the risk that comes with carrying cash. It also gives them a real time view of all their sales, card and cash.
How is it different from products being offered by large banks?
Pricing is considerably more competitive that the large bank led offerings, i.e 2.75% commission with no monthly fees. We charge the same rates irrespective of who the merchant banks with and have a dedicated support team focusing on our merchant base. We are a bank agnostic brand that is looking to constantly innovate, bringing real value to our merchant base.
The intuitive design of the app makes it easy to understand for the end-user and easier for a merchant to process a payment. The business analytics feature allows the business owner to track all their sales very easily, meaning that the SME is empowered with more information at their fingertips that they have ever had before. This is an area that we will continue to focus on in order to provide powerful data to each one of our merchants.
We have enabled all of our merchants to sell value added services through the app to any of their clientele for a rebate, the first phase of this strategy is Airtime sales which will be followed by other digital products. We are creating a product suite which will become attractive to the more informal sector as in essence they will be able to download an app and a suite of products which will earn them a living.
Do you have any plans of partnering with larger financial institutions?
ABSA is the acquiring bank whose license we are leveraging, however we can sign up merchants from all banks irrespective of the provider.
What would the ideal business look like to benefit from iKhokha?
- Any business that currently has a Speedpoint machine, but is paying costly monthly fees or high transaction commission
- Mobile businesses that want to be able to accept payment on-the go i.e. tradesmen, graphic designers, website designers, personal trainers, independent consultants, door to door salesmen, musicians, performers, private metered taxis, informal taxis and take-away deliveries
- Businesses that want to move away from cash transactions for safety & convenience i.e. as boutique retail outlets, jewellers, medical practices, physiotherapists, chiropractors, optometrists, beauty salons, independent DVD rental outlets, bakeries, deli’s, take away food outlets, hairdressing salons, bars, bookmakers, independent bottle stores, butcheries, pet shops, dry cleaners, and dog grooming parlours
Let’s talk money. What does it cost to get started with iKhokha? How is payment processing charged?
R989.00 once off fee for the Edge card reader (including delivery) OR monthly rental option of R69 a month (plus R160 delivery fee)
2.75% per transaction
Is it possible to customise where the headphone connector on the Android iKhokha sits to accommodate some Android phones which have jacks on the bottom left, bottom right and on top?
The Android unit will still technically work with the different orientation on some Smart devices, best to refer to our safe list of tested devices provided on the website. We are also bringing in a cable to assist with Android Smartphone devices with different orientation of the Audio Jack.
If possible, could you provide us with a couple of companies that are using iKhokha?
There is quite a spread of companies to name a few, Victor Design, My Renaissance, Courtney Shaw Skin Care and Body Therapy.