South African fintech pioneer iKhokha has launched its offering into the tap-on-phone market. The move comes amid a period of economic difficulty in the country and a need for innovation to stimulate small business growth.
The South African fintech space has matured well over the past few years, despite a faltering economy. Problems like unemployment have seen fintech companies gain importance as their technology can stir up growth in the pivotal SME sector.
Products like card machines and other digital payment platforms have seen an uptick in both demand and innovation, as ordinary citizens explore more ways to make money in a digitising economy.
Thanks to iKhokha’s latest offering, iK Tap on Phone, small business owners can look forward to accepting payments for their products or services using their Android smartphones.
A global payments processor recently completed a year-long pilot of tap-on-phone technology in various emerging economies. The company cited the rise of contactless payments in the post-COVID-19 landscape as a major factor leading to the robust testing phase.
Contactless payments, otherwise known as Tap & Go, are card transactions that use near-field communication (NFC) technology to exchange information between devices that are close together.
The method uses magnetic signals for the secure exchange of data. In recent years, NFC-enabled devices have taken over the payments space, with major banks across the world rolling out the technology on bank cards and speed-point machines.
While initially introduced to increase convenience for shoppers, contactless payments reached a new level of public notoriety amid the coronavirus pandemic. For consumers worldwide, the method became the preferred way to pay, largely due to its touch-free capabilities that made it possible to pay without holding a card machine.
Tap & Go technology has since been adopted across the internet of things (IOT) landscape. Smartphones are the latest in a growing list of devices that one can use to either pay or get paid for goods and services.
Several local financial technology companies have welcomed the adoption of NFC technology. Despite South Africa lagging behind the developed world in terms of 4IR infrastructure, the local market has seen decent uptake in digital devices, making advancements like tap-on-phone sustainable and scalable.
There are various tap-on-phone offers on the market currently, with companies in this competitive space always eager to launch new products to help their customer base of small businesses. Big players like iKhokha have started offering tap-on-phone technology to their customers for free.
The company recently launched iK Tap on Phone on the iKhokha app. The NFC-driven product looks to merge iKhokha’s trademark low rates with ease of use for local entrepreneurs. Their entry into the tap-on-phone market was developed in South Africa, giving it a grounded understanding of the pain points and aspirations of local businesspeople.
iK Tap on Phone allows South Africa’s business owners to process real-time card payments on their smartphones with only a tap of any activated NFC-enabled device. This nifty feature on the free iKhokha app could help small businesses and aspiring solopreneurs increase revenues and profit margins.
The offer allows business owners and side-hustlers alike to accept card payments without the upfront costs of buying a card machine. In the long run, this may lead to the democratisation of small businesses, with more people emboldened to start a business.
Given South Africa’s recent economic troubles, from ballooning fuel prices to record unemployment rates, products like iK Tap on Phone lower the barrier to entry into the informal economy for citizens looking to take initiative.
More established businesses such as retail stores and restaurants can also benefit from tap-on-phone technology. Portability, especially for deliveries, is one key element of the tap-on-phone experience, while it can also be used as an additional payment portal to make queues move faster, or when a power outage strikes.
Another encouraging factor involves current trends around smartphone usage. Tap-on-phone technology will give ordinary people the chance to turn their smartphone usage into something positive that can change their lives and help others as well.
Early adopters often gain first mover’s advantage. If you’re looking to stay ahead of the competition and surprise your customers with something new, you can try iK Tap on Phone on the free iKhokha app.
Learn more on www.ikhokha.co.za.
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