In the world of commercial real estate and asset management, payment management is an important yet sometimes complicated task. As a professional in the industry, you’re probably familiar with this challenge.

Handling a myriad of payment types — from rent collections to deposits, fees, and closing costs is no easy feat.

Traditional methods are not only time-consuming but also prone to mistakes and inefficiencies. As the industry evolves, there’s a growing need for a more streamlined, secure, and efficient way to manage money.

This is where an effective, innovative, and comprehensive payment service comes into play. A solution that’s perfectly tailored to meet your unique needs in the real estate and asset management sectors is the answer to your prayers.

Imagine consolidating everything into a single platform, automating processes, and providing different payment options. Commercial Real Estate asset management can be a stress-free reality, so let’s find out how.

Common payment challenges in CRE asset management

Real estate asset management services are varied across the board. Before diving into the benefits you can take advantage of, there are several challenges to prepare yourself for.

Fragmented Payment Processes

Managing different types of payments—rent, fees, deposits, closing costs—can be a frazzled process. It often requires multiple platforms or manual handling. This fragmentation leads to longer processes and increases the risk of errors.

Inconsistent Cash Flow

Late or missed payments can disrupt your cash flow, creating information gaps and stress for property managers and owners.

A survey by PWC highlights that nearly 90% of institutional investors believe that the adoption of disruptive technologies, such as integrated payment systems, could improve portfolio outcomes. This means an improvement in the movement of money in your business too.

Manual Processing

Traditional payment methods often require data to be entered manually, which not only takes a while but ups the risk of errors. This can land you with the wrong payment processing and reconciliation lags.

Security Concerns

Handling payments manually or with outdated systems can expose your sensitive financial information to security risks such as fraud and data breaches.  According to WTW, 72% of industry professionals name cybersecurity as one of their most significant risks. This concern has made protecting companies from cyber attacks a top concern.

Lack of Transparency

Tracking payments and providing clear, transparent reporting to your stakeholders can be difficult without a centralised system. Mix-ups can lead to disputes and disappointments, which is the last thing you need.

The Netcash advantage: An integrated payment solution

Addressing these challenges by providing an all-in-one payment solution that is specifically designed for the real estate and asset management industry. What does that look like? Let’s break it down.

Consolidated platform

One of the standout features of an ideal system is its ability to merge various payment types into a single, easy-to-use platform. Whether you’re collecting rent, fees, deposits, or closing costs, the package must allow you to manage all your transactions from one place.

This not only simplifies the payment process but also reduces the administrative headache of juggling a host of systems or manual processes.

By having a consolidated platform, rental agents and property managers can easily track payments, reconcile accounts, and generate reports, all within the same system. This comes in handy since it eliminates the need to use too many software options. 

It also cuts the risk of errors that come with managing payments across different platforms and makes you that much more efficient.

Multiple payment options

In today’s digital age, having the option of flexible payment is vital for enhancing tenant and owner satisfaction. Look for a system that provides a variety of payment request methods, including EFTs, online payments, and debit orders.

This flexibility allows tenants and owners to choose which payment method suits their needs best, meaning you’ll receive your payments consistently and on time.

The ability to offer multiple payment options can greatly reduce the frequency and even occurrence of late payments. Tenants are more likely to pay on time when they can choose a method that suits their financial habits, whether setting up automatic direct debits or making one-time payments from their credit card.

Automation and efficiency

Automation is a game-changer in the world of payment management, and any good system takes full advantage of this. The ideal platform would create automated reminders for upcoming payments, ensuring that tenants and owners are always up to date and informed about their requirements. This feature helps to prevent late payments and improve the consistency of your cash flow.

An added perk would be the option to automate recurring payments, which is an excellent help for rental agents and portfolio managers. By setting up all your recurring payments, you can ensure that all rent is collected on time each month without needing you to intervene, and it saves you time.

Late fee enforcement is another area where automation can make a big difference. If you can automatically apply late fees to overdue payments on the system, it encourages tenants to pay on time and owners to stay on track with their obligations.

Tailored real estate asset management solutions for industry professionals

Software companies recognise that the needs of industry professionals are unique. That’s why you need expert solutions to meet the specific demands of your role.

A well-formed payment solution simplifies rent collection and tenant management for rental agents by offering features like automated rent reminders, multiple payment methods, and easy reconciliation. If you’re managing new developments, the system provides a streamlined way to handle deposits, progress payments, closing costs, and utility payments, ideally integrating a payment request option for on-the-spot payments. This helps ensure that all transactions are managed efficiently and transparently.

Managing payments for community living can be complex, but with the right package, you don’t have to worry. The software should make it easier for body corporate and homeowners association managers by offering solutions for collecting levies, fees, and fines. 

The need for platform transparency ensures that all stakeholders have a clear view of financial transactions, reducing disputes and enhancing trust.

With so many properties to manage, real estate portfolio managers need a system that can handle large volumes of transactions efficiently. A well-consolidated platform with useful automation features makes it the ideal solution for managing diverse property portfolios.

The future of payment management in the real estate and asset management industry

In an industry where efficiency, security, and transparency are critical, Netcash’s solution addresses the unique challenges faced by professionals filling roles in asset management. By providing a host of essential features, Netcash has simplified managing the money side of real estate.

The benefits of using Netcash are clear: it frees up your time and improves cash flow, reduces administrative burden, enhances security, and improves tenant and owner satisfaction. For professionals looking to streamline their operations and reduce risks, Netcash is the ideal solution.

Experience firsthand how this comprehensive payment solution can help you achieve greater efficiency, security, and satisfaction in your real estate and asset management operations. 

 

Netcash is registered with the FSCA and PASA and is PCI DSS Level 1 compliant.

Being in the utilities industry, you’ll have noticed the rise of prepaid meters and their benefits for both companies and consumers.

More and more residential and commercial consumers are shifting away from traditional postpaid metering to prepaid metering. This even includes the national order to move all Eskom and Municipal electricity metering to prepaid.

There are several reasons behind this booming trend, such as reduced electricity theft and improved revenue collection, among other benefits. As convincing as that sounds, like any other transitional shift, there are risks and challenges you might face, such as fraud, meter tampering, and customer mismanagement.

The question is, how will you adapt to it in order to run a successful utility business?

Let’s explore how you can overcome these prepaid meter challenges within the utility sector.

Also read: Analysing the ISP industry and what it takes to stay competitive (2024)

A quick look at the prepaid meter challenges faced by the utility industry

The need for prepaid meters isn’t slowing down and is expected to continue its stable growth trajectory at a minimum annual growth rate of 6.5% or more until 2027. With the South African prepaid metering market sitting at 10 million users already — the demand is clear.

Now, what exactly are these prepaid meter challenges? We will detail some of the most impactful setbacks and how they affect the energy and utilities industry.

Frequent top-ups

Consumers paying for their utilities, such as electricity or gas, means they’re responsible for topping up whenever necessary. This means that consumers have to purchase their utilities on a pay-as-you-go basis.

While this is a great benefit for landlords or body corporates in the Real Estate  industry, it can be a setback in the utility market. Many South Africans still buy prepaid electricity from retail food stores like Checkers, Spar, and Pick ‘n Pay, as well as local petrol stations.

So despite being able to purchase it online from their banking app, many have to frequently top up at a local supermarket which is inconvenient, especially when it’s cold. It can also be a safety concern as most people carry cash when going to supermarkets.

Meter tampering

According to a 2022 World Bank Group study, 86.5% of South Africans have access to electricity – yet, much of this access is not ethical or even legal. Besides illegal power connections, prepaid electricity meter tampering is on the rise. Eskom and municipalities lose about R25 billion in revenue every year due to electricity meter tampering.

Tampering with energy meters has severe negative effects on a utility company — and its customers. This type of electricity theft overloads the generation unit, causing the quality of the electricity supply to falter.

Furthermore, the utility company has no estimate about the quantity of electricity to be supplied to genuine customers as well as illegal consumers, resulting in over voltage and even damage to appliances.

opportunity to link to “B2B – Real Estate and asset management post”

How to overcome these prepaid meter challenges

Now that we’ve listed all the challenges, it’s time to evaluate the solutions.

Solving frequent top-ups with seamless top-up solutions

Offering your customers a way to top-up their prepaid meters through an online payment is easily the most effective solution to the frequent top-up dilemma. Not only can they make these payments from the convenience of their home, but it’s also instant, saving them lots of petrol and time.

With an innovative payment gateway, you’ll be able to accept payments online through multiple ways, including subscriptions, shareable payment requests, retail payments, and more.

It’s an all-in-one solution for businesses of all sizes, and the software can effortlessly integrate with your website. So, you can inform your clients that they are able to make top-ups directly through your website using the payment method they prefer..

Solving meter tampering with smart meter integration

Smart meters are digital devices that measure and record electricity, gas, or water consumption in real time — then report these key findings to utility companies. They measure things like voltage levels, electric energy, power factor, and current.

Smart meters are quickly becoming a significant tool in modern energy management. They help combat meter tampering since now these numbers can’t be altered. Netcash offers software integrations with apps or companies that offer smart meter apps as a part of their offering.

Solving customer mismanagement with CRM software

Cloud-based customer relationship management software can be your answer to managing customer data. It allows business owners to easily track all communications and nurture relationships. These systems facilitate team communication, integrate with social media, provide insights, and help with sales management.

ICS Flow is an excellent software partner that offers an End-to-End Contact Center Solution for customer services, sales, and debt collection. Their cloud-based software also offers CRM, Workflow, VOIP (Voice over Internet Protocol), and Communications, among other services.

This is an ideal system for utility companies to start seamlessly managing their customers. Furthermore, it can improve customer experience, retention, and loyalty. They also provide sales forecasting, which is essential for setting targets and making well-informed decisions.

Solving data mismanagement with meter data management systems

Invest in a   to solve this dilemma for your utility business. An MDMS supports internal utility needs by cleansing, calculating, and providing insightful data. This meter data can be used to support billing, detect tampering, theft, or leakage, and track consumption, among other things.

In short, this system verifies, imports, edits, and processes meter data for you so that it’s easier to make concise and informed decisions going forward.

Solving incorrect cash handling with accounting software

If you want to fix human error, fraud, mismanagement, and other setbacks regarding cash flow, innovating accounting software is your solution. This type of software can track and report your business’s day-to-day financial transactions and accounts. It also performs real-time accounting, managing expenses, revenue, accounts receivable, fixed assets, and sub-ledgers.

Accounting software integration through various solutions, including Xero and Acumatica, are exceptional examples. Once you’ve integrated your website with one of our accounting software partners, your cash flow will run more smoothly, and setbacks like human error or inside fraud can be eliminated.

Prepaid metering in the utilities sector wrapped up

No matter the industry you’re in, there’s always room for improvement. As you can see, there’s a solution for these setbacks, whether it’s meter tampering or customer mismanagement.

Our solutions mentioned above can help manage your business’ data for better decision-making and improve customer experience. They can also lower the chances of prepaid meter tampering, theft, and accounting mishaps or fraud.

Whether you’re operating at a large or small scale, there will always be a few bumps in the road. That said, conquering this latest utility industry trend can set you up for long-term success. And with these smart solutions offered by Netcash, you’re one step closer to that goal.

Contact us to learn more about these solutions.

In today’s economic ecosystem taking hold of progression and innovation isn’t just a suggestion. It’s a necessity. While this is true for every area of your business, the digital revolution has set its sights firmly on invoicing and bill payments, changing the way people pay, and businesses get paid.  

 But what does that mean, and what exactly should business owners know about billing management solutions? Now, if it seems as if there are dozens of obvious answers, that’s because there are, and they become more by the day.  

 That said, discerning which actually has value, also gets more challenging daily. Luckily, the heavy lifting has been done. So, let’s dive into a value-packed and actionable guide to understanding the new landscape of invoicing.  

A quick introduction to invoicing solutions and bill payments 

Before getting to the whys of billing solutions, it’s incredibly important to do a quick background check of the basics behind invoicing. 

What is an invoice payment, and what is it used for? 

Essentially, an invoice (or bill) is a payment request from a service provider or the seller of goods to a buyer. This demand is issued after the sale or rendering of services, indicating a breakdown of the costs associated with the items or work done. 

 These invoices can be used as a once-off payment demand for a project while also being usable for recurring payments for ongoing work. The ideal goal of invoicing is to foster an ongoing relationship between businesses and customers. 

How invoicing and billing solutions have changed 

The saying goes, “Out with the old, in with the new”, and when it comes to generating invoices and requesting payments, this couldn’t be more true. Not too long ago, invoices were issued via postal service and would typically involve a bit of waiting. 

 That said, invoices did prove to be an easy, largely reliable, and cheap way to interact with customers considerately and civilly. Time doesn’t wait, however, and the digital revolution has changed the way customers receive bills and pay their invoices. 

 The same goes for businesses’ methods to generate, deliver, and record invoices. This is strikingly true in South Africa, as the need for seamless, easy-to-use, and speedy invoicing systems has evolved the local billing landscape. 

What makes an invoicing solution stand out? 

Keeping in touch with advances in billing solutions is one thing, but what genuinely makes an invoicing system stand out? There’s no shortage of viable choices out there, but here’s a run-through of some criteria you need to keep in mind, especially in the digital age: 

• Intuitive programming: Invoicing systems should be able to understand and adapt to your business’s unique needs, ultimately streamlining your daily operations without a steep learning curve. 

• Functions in a scalable way: As your business grows, so should your billing software, and digitally speaking, the sky is the limit. Integrated into your accounting and billing, the right system should quickly scale alongside your business. 

• Legal and regulatory compliance: Compliancy is king, and that means your invoicing and billing systems need to meet legal and regulatory needs.  

• Easy customisation: Being unique, diverse, and expressive isn’t normally associated with invoices, yet creating a lasting impression wherever you can, will help your business stand out. 

• Seamless flexibility: Your business operates within a dynamic financial world, which demands flexibility in every aspect of your company. An invoicing solution should function without any rigidity, meeting fresh challenges head-on. 

Why is having an efficient invoicing system so important? 

So, with the foundations of modern invoicing laid, why are future-forward billing management systems so valuable? Far more than simply sending an invoice online or being paid on time, having these solutions in place plays a deceivingly larger role.  

 To remain profitable, a business must keep attracting and retaining new customers. Retaining customers once you win them is essential to building customer lifetime value and long-term profitability. Attracting and onboarding a new customer usually involves sales, marketing, advertising, and administration costs. 

 But once they’re on board, the costs of cross-selling and upselling to customers are lower than those of winning new prospects. One celebrated study found that increasing customer retention rates by 5% increases profits by 25% to 95%.  

As a business owner, you probably wear many hats — from pricing of products, chasing debtors, paying creditors, and most aspects involved with running your company. If there’s one task that undoubtedly takes a lot of time, it’s invoicing.  

You’re likely to be familiar with the painstaking steps of generating, scheduling, and sending an invoice (or processing invoices received) — all the way up to capturing it in your accounting software.  

If the sound of this stresses you out a bit, you’re not alone.  

Invoicing is a necessary but time-consuming task. But there’s a solution that can simplify the process and won’t have you pulling your hair out. By integrating an automated invoice system, which is basically a function of your accounting system, with your payment platform, you can save yourself and your employees time in the billing process, reduce errors, and improve your business’s cash flow.  

Are you ready to focus on working on your business and not in it? This guide on invoice automation will provide you with what you need to know about automated invoicing. 

Automated invoicing system for suppliers 

With suppliers, automated invoicing works differently.  

In this case, you or your accounts payable clerk scan the invoice so it’s captured in your online accounting system, and the invoice process unfolds from that point.   

Let’s examine how the automated invoice processing software works its magic for suppliers: 

• Receive invoices electronically from suppliers: This is typically done via email or the cloud.  

• Invoicing software automatically imports the invoice: Your invoice software will then extract data from the invoice onto its system. The data includes details like your suppliers’ banking details, your customer information, and transaction details, like units and prices.  

• Automated invoicing system automatically matches the invoice to a corresponding purchase order: Your invoice processing software will then match the invoice to the purchase order to ensure that it’s properly accounted for.  

• Invoice processing software automatically sends approval notifications to the relevant party: Before your business can pay its supplier, payment will need to be approved by the accounts payable team and entered into your business’s ERP (enterprise resource planning) system as an expense.  

• Once approval is received: If you have a third-party payment system integrated, then you can easily pay your suppliers in bulk directly from your Netcash account. Once that payment is made, if using Netcash, the invoice will automatically be marked as paid and reconciled back into your integrated accounting package. 

What is automated invoice processing? 

So, what exactly are automated invoices and the processing thereof?  

Invoice processing automation entails using technology to automatically generate, schedule, and send an invoice with minimal human input.  

It works a little differently for your business’s customers and suppliers, but the invoice automation process can still help your business save time, minimise errors, and improve cash flow. 

Automated invoicing system for customers 

Automatic invoicing allows you to conveniently input customer and product or service information at one time. It then populates the invoice for you with that information, your banking details, your VAT number, and other information you wish to add.  

The invoice processing system automatically schedules the invoice for a specified event (e.g., after a customer places an order) and thereafter sends it to your customer. 

A few examples of accounting software that offer this, and that Netcash is integrated, can be found on our Accounting Partners page.

Here’s a step-by-step breakdown of this process (which differs from system to system): 

• Set up the automated invoicing software: First, you’ll need to enter your business information (e.g., VAT number), business address, and payment terms. 

• Create your business’ invoice template: You’ll set up a template of your business’ invoice and ensure that it includes the required information. This includes the invoice date and number, customer details, quantity, unit price, product or service information, and total amount. 

• Generate and schedule to send invoices: Once you’ve set up your invoicing software, you’ll get to easily create and send invoices to your customers. 

• Integration: Integrate with a payments system, like Netcash, where the invoice can be sent with a payment link to easily pay online via multiple payment types. 

• Tracking: Track the status of your invoices, such as whether your customers have paid them or not. 

• Reconciling: Once payment has been made, the payment can be reconciled. If you integrate Netcash’s payments system with your software, the payment will be automatically reconciled back to your accounting software. 

 

Benefits of automated invoicing 

We’ve spoken quite a bit about how the invoice automation process saves your business time. But how exactly does it do this, and what other benefits are there to automated invoicing? 

Increased productivity 

Businesses are constantly looking for ways to improve productivity and output. When you automate invoice processing in your company, you’re freeing up the time you and/or your employees spend on manually processing invoices.  

Depending on the size (and nature) of your business, you could be dealing with hundreds or even thousands of suppliers. Implementing automated invoice management allows your employees to work on other tasks, which can lead to improved productivity and generate revenue for the company.  

It takes the average SME about 25 days to complete the invoice cycle for one invoice. Imagine how much time, productivity, and profits your business could unleash by automating the creation and issuing of invoices, as well as the recon of payments made.

Improved efficiency 

By automating the process of sending, receiving, and processing invoices, your employees can get more work done in less time, saving you time and money. 

Reduced errors 

Manual data entry can be a slow, tedious task. It requires focus and attention, which dwindles by the hour when one is manually processing large volumes of invoices.  

When you automate invoice processing, you help reduce the risk of human error. And if you use Netcash, then your invoices are automatically reconciled when payment is made. So there is no chance of human error.

Improved customer service and supplier relationships 

Automated invoicing can help foster better relationships with your customers and suppliers. It makes room for faster and more efficient invoice payments from customers, especially if you offer multiple convenient ways to pay.   

In addition, relationships with suppliers are improved if your invoices are always paid on time, and always correct. These are all things that make our suppliers happy.   

If you have Netcash, you have all this and automated reconciliation. Less opportunity for mistakes means a frictionless relationship.

Better insights 

Often, manually sorting through printed invoices doesn’t give you the whole picture. If you were to try to see the whole picture (i.e., without using the filters on an automated invoicing system), it could require a lot of time manually sorting through invoices to try to glean insights.  

With all customer and supplier information in one place, you can have immediate access to the data you need to make informed decisions. An example of this includes being able to determine which supplier you pay before settlement dates and how long you’ve had a relationship with them. Your business can use this information to negotiate early settlement discounts.  

When looking at customer data, you’ll be able to identify which customers are struggling to pay you and which ones you could offer trade discounts, for example. 

Improved cash flow 

By helping you speed up the process of paying invoices and collecting payments from customers, automated invoicing can help you manage your cash flow better. 

Improved compliance 

A lesser-known benefit of using invoice processing systems is potentially being more compliant with regulations.  

Making use of invoicing automation could help your business comply with government regulations by providing you with a secure trail of your financial transactions. 

Final thoughts on automated invoicing 

Automating certain business processes can give you a leg up in the competitive business landscape. It’s also clear that automated invoicing can transform your business operations by allowing you to reduce errors, improve customer and supplier relationships, and improve cash flow management, which all positively contributes to your bottom line.  

Manual data entry shouldn’t hold you back; it’s time to introduce efficiency and improved productivity into your invoice cycle by streamlining the process. 

As the sun rises on a new day, the South African solar industry’s revolution continues pushing forward. In the continent’s push for accessible and sustainable energy, it’s time to analyse innovations shaping the future of the South African solar industry.  

With solar solutions emerging as an increasingly vital part of our world today, traditional sources continue to prove unreliable.   

The solar power industry has shown to be one of the most viable alternative energy sources locally, with record-breaking numbers in recent years. But what’s behind this driving force, and what hurdles remain?   

With a positive outlook and a growing solar market, let’s examine the industry, its challenges, and how to stay ahead of the curve. 

 

Read next: Digital payment processing. 

What’s standing in the way of the South African solar industry? 

As the solar industry in South Africa is proving to be the light at the end of loadshedding, it still faces challenges. Alongside these potential problems, there is also a buffet of solutions to innovate the sector.  

Battling an increase in initial costs 

Despite decreasing overall costs, high initial costs in South Africa are the first obstacle to businesses’ and individuals’ adoption of solar energy. This widespread barrier stems from the fact that South Africans simply do not have the funds to afford skyrocketing setup costs. 

This represents a problem where initial installation costs are out of reach, and long-term savings are almost impossible to imagine. Solar suppliers must balance high quality and profit gain as the sector expands. 

As more people and businesses are forced to turn to solar alternatives, the need for versatile payment systems and solutions is greater than ever.  

Subscription model payments, which include debit orders and recurring billing backed by trusted payment providers, are at the forefront of these solutions. By offering these, solar providers position themselves to improve accessibility to solar power for individuals and businesses.  

Rising competition from other energy sources 

While the industry is thriving, its success hangs on a precariously thin thread, and solar suppliers must strengthen their ability to withstand competing energy sources. Fluctuations in fossil fuel prices and investment in other renewable energy sources pose the greatest threat to this. 

Collaboration is key in this regard, and a strong, competitive solar industry must be fostered to succeed. From raw material suppliers to manufacturers and installers, a harmonious industry can endure. 

That said, this relies on mutual monetary benefit. Solar suppliers have to engage with other key players in the industry and create favourable relationships. With resources in high demand, on-time creditor payments are the ideal foundation for establishing lasting industry relationships. 

Technicalities with grid integration and infrastructure 

Another hurdle is ageing infrastructure and grid integration. Years of mismanagement and lack of maintenance make integrating intermittent solar energy into the existing power grid significantly more difficult. 

Without massive upgrades to accommodate small- and large-scale solar integration, the industry will be throttled, and growth will suffer. This necessitates lasting collaboration between solar companies, utilities, and the government to modernise the grid infrastructure. 

As a result, this collaborative effort can ensure smooth energy integration, improved grid stability, and enhanced overall system resilience. Beyond these, these strategic partnerships can facilitate knowledge sharing, resource pooling, and risk mitigation, benefitting the entire industry. 

Maintaining skilled and valuable staff 

The successful adoption and implementation of solar and solar energy companies in South Africa requires a skilled workforce. The backbone of this workforce is employees with technical expertise who are valued, respected, and paid on time. 

Solar suppliers must integrate salary payment systems that keep staff happy. Considering the high price tag that comes with solar equipment, unrest among your employees can lead to escalating issues, such as internal theft.  

As the industry emerges from its infancy, internal disputes and disruptions pose a real threat, one that solar suppliers should avoid. 

Another aspect to keep in mind is the potential disappointment of staff should solar suppliers not offer training opportunities. Human error with payroll disbursement plays a prominent role in hurdles that could have been avoided in the administration of your business.  

Contactless payments have become a standard option with most retailers in the last few years. What’s more, phones have essentially become an extra limb – one that people hardly ever leave home without. 

With this in mind, many businesses have added scan to pay and QR codes as an accessible and quick way to complete transactions. But do you know all the security and privacy benefits of scan to pay contactless payments? 

This guide will cover all the top advantages of using scan to pay QR codes for contactless payments. We’ll also get into some useful info about these methods and even how to set them up.

What is scan to pay and why should you use it?

Scan to pay is a simplistic, swift, and secure way of making payments by quickly scanning a QR code using your smartphone’s camera. Quick Response (QR) codes are a type of barcode that can be read by a variety of devices to access payment channels, Wi-Fi networks, and informational pages. 

As a form of contactless payment, scan to pay helps to reduce physical contact between the consumer and business employees. This made it hugely popular during the COVID-19 pandemic, as many people wanted to minimise touching possibly infected objects. Since then, many businesses have seen the benefits of using it.

This payment method also works exceptionally well with certain types of businesses, as it’s paperless, doesn’t require expensive POS systems, while making brands seem more future-forward.

How secure are scan to pay QR code payments?

Using scan to pay and QR codes is a secure method of retail payment. That’s because it does not require contact with the payment terminal – reducing the chances of skimming, tampering, or cloning. 

It also does not transmit sensitive data, like your card numbers and personal details, which helps to minimise risks like hacking, spoofing, or interception. 

That said, contactless payments are not without downsides. This technology is highly dependent on the customer’s smartphone security, which could be compromised by malware, theft, or phishing. Additionally, QR codes could be duplicated, manipulated, or replaced by fraudsters looking to take advantage of small businesses.

How to make scan to pay more secure for your business?

To make contactless payments more secure, there are several safety procedures you can put in place. These range from using custom QR codes to encrypting your business’s website. 

Here is what we recommend: 

• SSL-certify your website: A Secure Sockets Layer (SSL) certificate proves to your customers that their information is safe and shields them against hackers trying to create a fake site. This works in your best interest, as your consumers will feel secure using your online business.
• Use an SSO-enabled QR code generator: Utilising a generator with a single-sign-on (SSO) login will help to limit who is able to edit the code. In fact, only your business will be able to access the code management platform.
• Invest in a GDPR- and POPIA-compliant QR code generator: If your code generator complies with the General Data Protection Regulation (GDPR), it will protect your and your customer’s data from hackers or third parties. 
• Using custom QR codes: By making use of custom QR codes, not only can you help develop your brand’s image, but you can also safeguard your customer’s data. With unique code templates, it’s harder for scammers to modify them and exploit you.

Why are scan to pay and contactless payments beneficial for your customers?

We’ve gone over the benefits of why scan to pay and contactless payments are beneficial for the security of your business, but you might be asking how will my customer take this process? Well, besides the fact that contactless payment is such a commonly used transaction method today, it also has several crucial benefits for your consumer. 

• Faster payments: The typical paying process at restaurants, bars, and retailers can often be quite slow, especially at peak business hours. Using QR codes and scan to pay can save time for both the consumer and the merchant, as all they need to do is scan the code, pay for the service/product, and a notification pings when the transaction is successful.

• Safer transactions: Through dynamic data processes and encryption, contactless payments and scan to pay are more reliable and secure than older forms of payment. In addition, these methods are better equipped against fraud and scams.

•  Better flexibility and convenience: With scan to pay and contactless payment, the customer no longer has to worry if they’re carrying enough cash. They simply have to pay by phone, after authorising the payment through a pass code, biometric feature, or two-factor authentication. 

Privacy benefits of using scan to pay for contactless payments

Scan to pay can also be hugely advantageous for your business. However, consumers worry about their private data being compromised. That doesn’t have to be an issue, though, as contactless payments do have safeguards against that. Here are the top privacy benefits of using scan to pay for contactless payments. 

Scan to pay does not collect personal information

Let’s dispel the myth: using scan to pay with QR codes does not collect personally identifiable information like your name, address, and birthdate. Instead, it collects information specific to it, such as the number of times the code has been scanned, the operating systems of devices that have scanned the codes, and when the code was scanned. 

QR codes don’t live track you

Another mistruth about QR codes is that they can be used to track your location. Well, this is simply not true. When someone scans a QR code, the data is only collected there and then. And as mentioned in the previous point, it is only information about the QR code. 

QR code generators cannot obtain any of your personally identifiable information, and therefore, they cannot track where you are. The data is collected similarly to that of a photo – and will only be recorded at the moment when the code is scanned.

Drawbacks of using scan to pay for contactless payments

Sadly, scan to pay does not come without its disadvantages, so it wouldn’t be fair if this guide didn’t address them. From possible inaccessibility issues to less control for the merchant, here are the top drawbacks of using scan to pay.

Not accessible to everyone

The truth is that even today, in the Information Age, not everyone has smartphones. QR codes require smartphones with software advanced enough to scan them. Some users might be unfamiliar with scan to pay or simply prefer more widely-accepted options. 

Requires internet connection

QR codes also need Wi-Fi or mobile network access to work. If, as mentioned above, users have older smartphones or more rudimentary cell phones, they won’t be able to pay using the QR code. This can be where contactless cards come in handy – and it goes without saying that having multiple payment channels is best. 

User distrust and unfamiliarity

If your main customer base prefers paying with cash and cards, a big change like using QR codes might cause distrust in your business. This is especially true if they’re unfamiliar with scan to pay technology. 

This is definitely something to consider when setting up scan to pay at your business – and it could be a big risk. 

Frequently asked questions | Scan to pay for contactless payments

Even though this guide has given quite a thorough look into scan to pay methods, you may still be looking to answer some burning queries. We’ve collected some of the most commonly asked questions about scan to pay for contactless payments and responded to them below.

 

What scan to pay options are there in South Africa?

South African businesses and companies have taken scan to pay by storm in the last few years. Snapscan and Zapper were among the first mobile payment providers, but now all major banks offer scan to pay on their mobile apps. This includes Nedbank, FNB, Capitec, RMB, Standard Bank, and Absa. 

Moreover, even mobile network providers, like Vodacom and Telkom, offer scan to pay through the Vodapay and TelkomPay apps, respectively. Heck, even Engen has released the Engine1 app for paying via QR code, which they also use to market special offers at their 1Shops and to foster customer loyalty.

 

Why should your business go contactless? 

Besides just the convenience of using contactless systems for your business, it’s also becoming a way of modernising your business and attracting more people to your service.

Most contactless payments don’t have any additional processing fees, saving you extra money to spend on renovations, improving your products, and maximising customer experience. It also offers a more hygienic way of making payments, which helps both you and your customer.

 

Why should I use Netcash’s scan to pay process?

The answer to this is simple: efficiency. Not only is the setup simple and hassle-free, but Netcash also has a mobile app, billing options, and physical methods to receive payments with QR codes. Other benefits include:

• It’s cheaper and faster access to your merchant facility.
• The exact amount can be displayed on the customer’s payment app, without the customer having to type it in, which creates a more frictionless experience.
• Each QR code contains unique data, so other useful information can be recorded, like where the transaction is taking place.
• No need to deal with the onerous compliance requirements that come with storing cardholder data.
• Netcash also provides static QR code countertop stands as a backup in the case of power outages or systems being offline.
• Digital wallet users do not expose their cards to skimmers thereby eliminating fraud.

Additionally, Netcash’s QR codes work with all major banks and service providers in South Africa, such as: 

• Capitec
• Nedbank
• First National Bank (FNB)
• Rand Merchant Bank (RMB)
• Absa
• Standard Bank
• Telkom
• Vodacom
• Zapper
• QR Junction
• Spot