In 2020, the South African e-commerce market grew by 66% and is now expected to be valued at R225 billion by 2025.
Established online payment providers have always tailored their offerings to large businesses, making it difficult for small businesses to establish themselves online.
For context, one of South Africa’s largest payment gateways charges 3.5% (excluding VAT) per transaction. They then charge an additional R8.70 per payment when a merchant transfers money to their bank account. Again, excluding VAT.
For a small business owner faced with the day-to-day uncertainties of running a business, these online payment methods may not be worth it. As a result, small businesses are missing out on a rapidly growing market.
But not all financial service providers leave these companies to fend for themselves. iKhokha stepped in with an online payment solution to help small businesses thrive.
According to Andrew Roy, Product Manager at iKhokha, the mandate was given to bring the product to market within tight timelines to enable more small businesses to participate in this thriving digital economy.
“We wanted to provide our merchants with online and offline payments, so they could process payments for all facets of the business under one iKhokha umbrella,” says Roy.
The result is iK Pay online – a planned stable of online payment solutions for small businesses.
The first of the iK Pay Online products – iKhokha payment gateway – recently launched in beta and already processes a quarter of a million rand per month in merchant transactions.
WooCommerce and WordPress users now have free access to iKhokha’s WordPress payment gateway. Similar to their card machines, iKhokha charges no monthly rental fees, offers no contracts, and charges no setup fees for its product.
Even better news for small businesses is that iKhokha has set its transaction rates at 2.85% (excluding VAT) – the lowest starting rate in Africa – with a nominal settlement fee of R2.50 per payment.
While this payment gateway offers more realistic margins for small businesses, iKhokha plans to launch a series of products in the iK Pay Online stable.
“It’s part of a larger e-commerce strategy. It’s the first of a series of products we’ll be developing over the next five years to make it easier for small businesses to succeed online,” says Roy.
To learn more about iKhokha’s payment gateway, please visit www.ikhokha.com/pay-online.
The post Popular fintech launches online payment gateway for small businesses appeared first on The Bharat Express News.
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