[South Africa] Fintech Hello Pay launches new mPOS device for SMEs
South African fintech firm Hello Pay has launched a new high-end Android Mobile point-of-sale solutions (mPOS) for local merchants and SMEs.
Hello Pay says mPOS are no longer ‘alternative’ payment solutions – even small vendors who aren’t using this technology, will soon lose out if they don’t adapt. The market is expected to achieve a compound annual growth rate of almost 20 percent between 2021 and 2027, with many merchants not only adding these solutions to their business, but even replacing their traditional POS systems with mobile terminals.
Even in a country like South Africa, where cash is still the payment method of choice for most, merchants who don’t adopt mPOS solutions soon will get left behind, says Zunaid Miya, Managing Director of Hello Pay.
In one 2020 survey, 87 percent of retailers agreed that mobile payments provide a seamless and frictionless checkout experience that can improve cash flow. And 89 percent of respondents also said that the biggest benefit to using mPOS is its cost-effectiveness. This is often surprising to entrepreneurs and SMEs, for whom traditional POS systems are costly and out of their reach, says Miya. “The misconception prevails that trading in cash is cheaper and more convenient, but that’s not the case.”
According to the Payments Association of South Africa (PASA), businesses often do not account for all the costs associated with accepting cash payments, including the risk of theft, leakages, infrastructure costs for safes and tellers, and the costs associated with depositing this cash. These indirect fees make the true cost of cash for small businesses approximately 3.4 percent. Not to mention the inconvenience and risk of transporting and depositing cash. This risk is eliminated with mPOS systems.
Consumers, too, operate under this misconception. The same PASA report says cash costs the average SA consumer 2.4 percent of their gross income, and this burden rises to 4.1 percent for lower-income South Africans. Hello Pay is committed to help lift this strain on businesses and consumers through its offering, says Miya. “Hello Pay champions a commitment to real and meaningful financial inclusion for SMEs by offering services that are low cost, easily accessible and simple to use. Digital solutions like mPOS systems have the potential to level the playing field. Small businesses can control costs and manage cash flow more effectively, and benefit from a host of other services they traditionally wouldn’t have access to.”
Miya says the new device will have more capabilities than the company’s other offerings, with additional digital services. “The 4G-enabled device with its dual SIM will allow merchants to sell digital services, airtime, and electricity, as well as providing Hello Paisa’s financial services products including remittances and insurance. They can also purchase business services through our platform and submit loan requests on the device – to name but a few functions.”
This will appeal to a broad segment of the market, creating a cashless digital ecosystem for SMEs to truly thrive. “Such intelligent digital solutions, once only accessible to large enterprises, are now within reach for entrepreneurs and SMEs. The convenience, time savings and cash flow advantages will allow entrepreneurs to focus on what truly matters – growing their business,” says Miya.