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E-commerce has come a long way in recent years, and its evolution has been to the inclusion of the many, many people in South Africa who don’t own credit cards – the number one form of online payments in first world countries. These days, there are a lot more ways to get paid and in South Africa where debit card is king. SMEs and start-ups should be taking note.
Robin Philip, marketing and sales director of online payment provider, PayGate, stresses the importance of choosing the right payment methods for your business and your customer. People love choice but, “You can end up confusing your customer if they get to the online checkout and are presented with too many payment options. You end up losing out on sales,” Philip warns.
Big businesses are justified in having multiple online payment methods, but these add up to greater challenges, risk of fraud and degree of complexity. “For the SME, it doesn’t need to get complicated. A credit card payment option, coupled with a credit card protection service, as well as a debit card payment option like PAYD, is a good foundation.”
Below are some alternative online payment methods that will help up your sales without limiting your customer’s payment methods to credit cards:
How it works: Authenticated mobile transaction (AMT) technology turns mobile phones into secure pay point devices. Registration is once-off, and pin-based debit, credit or cheque card details are then safely linked to your customer’s Vodacom or MTN sim card.
How it works: This form of payment allows users to shop online by exchanging their cash for a Ukash code. Like airtime, Ukash comes in values of R10, R50, R100, R200, R500, R1000 and R1500 and can be obtained from nationwide Shoprite, Checkers, Pick n Pay, Standard Bank AutoPay, and hundreds of convenience stores and petrol stations.
FNB Cell PayPoint
How it works: Offers a secure online payment option to registered merchants using a customer’s cellphone. Customers are able to pay using any FNB transactional accounts like a cheque or savings account, credit card or e-wallet.
How it works: Spend money with your cellphone on a pay as you use basis. No bank account required. Registered users can deposit cash of any value into their m-pesa account and spend any value online. Each transaction costs R2.45.
SID – Secure Internet Deposit
How it works: SID uses a customer’s existing bank account to make secure payments online.