For the first time in South Africa, consumers can use their smartphones to pay in-store at iKhokha retailers
To tweet this news, copy and paste: iKhokha retailers now accept MasterPass at checkout in South Africa http://news.mstr.cd/1UAtAsH
Johannesburg, South Africa – 3 March 2016: Shoppers can now use MasterPass, the digital commerce platform from MasterCard, to safely and seamlessly pay for in-store or face-to-face purchases at over 2,000 iKhokha retailers and service providers in South Africa using their smartphones or tablets.
This follows a collaboration announced today by MasterCard and mobile commerce provider, iKhokha, which sees MasterPass’ digital checkout services integrated into iKhokha’s mobile payment application used by a wide range of small, medium and mobile enterprises including hair and beauty salons, tourism businesses, health care practitioners, and professionals like lawyers.
“MasterPass is a major step forward in the evolution of payments. As the way we shop changes, the way we tap, click and make a payment needs to evolve to best fit our needs and lifestyles wherever we are and from whichever connected device we choose,” says Ann Cairns, President for International Markets, MasterCard.
“Our association with iKhokha extends MasterPass’ acceptance beyond online stores into the physical retail world, enabling South Africans to make fast, seamless and secure digital payments online, in-app and now in-store too using any connected device.”
Since its launch in South Africa in July 2014, MasterPass has grown its acceptance network, with consumers able to pay using the digital wallet at more than 370 South African merchants including Takealot.com, Flysaa.com (South African Airways), Le Creuset, Flymango.com (Mango Airlines) and www.netflorist.co.za as well as over 250,000 merchants internationally.
“This positive uptake by merchants and consumers is indicative that digital payments are growing in popularity,” says Cairns. “And today, we are excited to offer MasterPass users even more places to pay digitally at iKhokha retailers and service providers.”
When shoppers choose to pay iKhokha retailers using MasterPass, they simply open the MasterPass app on their mobile device, and scan the unique QR code that is generated on the iKhokha retailer’s smart device. After shoppers enter their bank PIN number or 3DSecure code and CVV/CVC number on their own device, the transaction is complete.
Unlike other similar solutions, each MasterPass transaction is classified as an Authenticated Mobile Transaction by South African banks, ensuring that consumers enjoy the highest protection from fraudsters. Anyone can use the Standard Bank and Nedbank MasterPass apps – even non-Standard Bank and non-Nedbank cardholders. MasterPass also accepts selected PIN-based debit cards such as Maestro, enabling millions of South Africans to make omni-channel payments.
For merchants, MasterPass provides a secure, quick and easy way to checkout their customers, which can lead to increased spending and more frequent purchases. It also opens new business opportunities and enables merchants to potentially increase their sales to consumers in 28 other countries where MasterPass is available including Australia, Canada, China, United Kingdom and the United States.
“What excites us is that through our collaboration with MasterCard and MasterPass we are helping our merchants walk the journey from cash to card to digital acceptance. If a customer wants to pay with it, our iKhokha merchants need to be able to accept it, and we need to make that process frictionless for both parties. Providing Small and Medium Enterprises with cash recording capabilities, as well as digital and physical card payment acceptance, in one mobile app is to our knowledge an African first,” says Matt Putman, managing director at iKhokha.
One such retailer is Ruth Mafupa, owner of Natural Moisture, a natural hair and beauty enterprise that manufactures products and then sells them wholesale to salons and directly to consumers online and from her store in Johannesburg. She accepts card payments on an iKhokha mobile point of sale device connected to her smart phone, as well as online and now in-store digital MasterPass payments using the iKhokha app.
“Many of my customers spend more with me now that they can swipe their cards on my iKhokha device. They aren’t restricted to the cash in their purses, which is extremely unsafe to carry,” says Mafupa. “Of course, they all have cell phones and although they sometimes leave their purses at home, they are never without their phones. For this reason, I’ve also started asking my customers to download the MasterPass app to encourage additional digital payment behaviour.”
The MasterPass app and iKhokha merchant app are both available from the iTunes and Google Play stores.
Easy in-store payment with iKhokha and MasterPass – A step-by-step guide:
Consumers need to download the MasterPass app from the their relevant service provider’s app store and register their details along with a nominated payment card (debit, credit or cheque card) from any South African bank.
When paying an iKhokha retailer using MasterPass, the retailer’s iKhokha app generates a QR code that displays on the retailer’s device screen.
Consumers open the MasterPass app on their own mobile device and scan the QR code.
Consumers choose the preferred, pre-loaded debit, credit or cheque card they want to use for payment.
Depending on the consumer’s bank, they will enter their bank card PIN or 3DSecure code and security code (CVC or CVV code), when prompted to authorise payment.
When the transaction is successfully processed, the consumer and the merchant receive payment confirmation.
iKhokha, a local Durban based Fintech player, is helping transform small businesses in South Africa through mobile innovation. iKhokha currently supplies over 2000 Small and Medium Enterprises nationwide with an innovative, low-cost mobile payments solution, helping these merchants accept payment cards via a user-friendly, low cost chip and PIN card reader linked to a secure application on their connected mobile devices such as a smartphone or tablet. The iKhokha app, which is compatible with Android and iPhone operating systems, enables users to complete a number of activities such as capture cash, process card and mobile payments as well as sell airtime for a rebate. MasterPass acceptance is now integrated into the iKhokha mobile application. Follow us on Facebook: @ikhokha or instagram @ikhokhasa
MasterCard, www.mastercard.com, is a technology company in the global payments industry. We operate the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. MasterCard’s products and solutions make everyday commerce activities – such as shopping, traveling, running a business and managing finances – easier, more secure and more efficient for everyone. Follow us on Twitter: @MasterCardMEA and @MasterCardNews, join the discussion on the Beyond the Transaction Blog and subscribe for the latest news on the MEA Engagement Bureau.
MasterCard Communications Contact
Birgit Deibele, MasterCard, firstname.lastname@example.org, +27 71 464 0983
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