Local fintech start-up Zakhaa will tomorrow introduce its buy-now-pay-later solution targeted at small, medium and micro enterprises (SMMEs).
In a statement, the fintech says Zakhaa FlexiPay is currently being used by a few merchants, with plans to launch its full beta program on Friday to 100 merchants across SA.
This will be followed by a mass launch in the fourth quarter, with plans to expand to other African markets firmly in place, it states.
The payment system enables SMMEs to enter into flexible payment arrangements for goods and services with customers, in an effort to ensure steady cash flow and reduce the risk of non-payment.
Teboho Twala, CEO and founder of Zakhaa, explains: “Your car breaks down in the middle of the month, you need a mechanic to fix it, and he says it will cost you R2 000, but you only have R500. Zakhaa allows you to pay the R500 now and then make an arrangement to pay the remaining balance of R1 500 over a period of three months. The payment system is able to capture this arrangement on the Zakhaa mobile card payment machine.”
According to Zakhaa, both parties will receive regular statements showing payment progress. In addition, the fintech’s app provides stringent security measures to protect user information. It also has verification processes linked to the Department of Home Affairs and banks to ensure secure transactions.
“We hope to help small businesses resolve their cash flow challenges in a seamless way by recovering funds that would ordinarily take too long to recover. Zakhaa FlexiPay enables small businesses to have credible trading track records, which allow them to grow and subsequently create employment,” adds Twala.
Gabriel Tumisang, of Azania Lifestyle, one of the SMMEs that has already onboarded Zakhaa’s payment system, comments: “This is truly the way to go for small business to build a profile and clear debtor’s book.
“What I like about the Zakhaa mobile payment device is that I can give recorded flexible payments to my customers and still process normal card payments. The same machine has value-added services, such as selling electricity, airtime, Lotto, Betway, DStv. This gives me an opportunity to make extra income too.”
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