iKhokha ties up with MasterCard in South Africa for rejuvenating card payments

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Durban based mobile payments start up iKhokha has entered into a partnership with MasterCard to roll out extensive card payment system among small to medium businesses in informal settlements. As part of the deal iKhokha plans to roll out 700 mobile POS terminals among this retailer segment in regions of KwaMashu, northern Durban and Ladybrand in eastern Free State on pilot basis which is later planned for expansion across other regions. The company also plans to increase consumer awareness among retailers and customers regarding benefits of card payments. iKhokha has a merchant base of 3000 and its mobile payment platform facilitates card based and card linked QR code payments through MasterPass, digital payment service of MasterCard.

Small, micro and medium businesses still depend on cash based transactions in South Africa. Low income group which comes under banked population tend to withdraw entire monthly income at one go and use cash transactions at these retail outlets. Hence, card based payment systems are rare among this business segment which highlights lack of awareness regarding the system. However, card payment channel saw a positive CAGR growth of 18.2% from 2009 to 2013 which is expected to increase at CAGR 7.9% by 2018. This shows positive growth prospects in this market for card payments.

With proper awareness programs, iKhokha is likely to benefit from card payment business expansion along with increasing dependable customer base while MasterCard is expected to gain positive market share in this segment in South Africa.

To know more and gain deeper understanding of prepaid card industry in the South Africa, click here