There’s simply no getting around it – people love options. From streaming services to takeout food delivery and online retail stores, there’s never been a bigger buffet of choices in the battle to keep customers happy. 

The same goes for the world of online payments, and to match the ongoing digital payments revolution, each day brings new innovations. That said, tried and tested online payment staples are still meeting the needs of millions. 

But, with the continued push for more innovation, convenience, and options, how does one keep up, let alone contend with industry giants? 

Well, we’ve crafted an in-depth guide detailing everything you need to know about online payment options. So, keep reading to pin down how to make the most of online payments. 

Read next: How to set up online payments. 

The need for online payment options 

Even though the concept of online payments isn’t new, more and more businesses across various industries have started to adopt these technologies. The tech behind each might differ, from traditional bank transfers to card transactions and contactless payments, but their purposes are the same. 

At the very core of any business lies the goal of making profits, but this is only possible if companies offer their customers the ability to make payments. While this might seem obvious, this objective created the need for online payment systems. 

With the boom of eCommerce, amongst other digital-focused industries, the need for online payment methods came quickly. It has become more frowned upon to bottleneck customers with limited payment options than ever before. This has given way to many online payment possibilities, making it simpler than ever to accept payments online.  

Catching up with South Africa’s online payment revolution 

Considering South Africa’s attitude towards the global digital shift, what was once a traditionally cash-based economy is opening up to various alternatives. Having never shied away from the digital shift in banking, shopping, and lifestyle, South Africa has led the continent in innovative ways of paying and being paid. 

A key player in South Africa’s diversifying payments landscape is the implementation of mobile money services such as MTN MoMo and 1Voucher. The latter provides 29 million cash customers with a secure yet cashless way to pay. On the other hand, digital wallets like Apple Pay and Google Pay allow consumers to tap and pay quickly. 

Like other African countries, South Africa has also opened its payment landscape by including buy-now-pay-later (BNPL) options. And while it is still in its fledgling state, many South Africans have used BNPL services for eCommerce purchases and continue to do so. 

Electronic fund transfers (EFTs) 

On to a commonly used online payment method used daily worldwide for numerous transactions – electronic fund transfers. 

The basics of electronic fund transfers (EFTs) 

Okay, so what goes on behind the scenes of EFTs? Simply put, a bank transfer is the direct transfer of funds from one bank account to another. This type of transaction can be between two local banks, but international bank transfers can also be completed between two foreign banks. 

Electronic fund transfers: How do they work? 

While the process by which an EFT takes place is pretty straightforward, you should remember that it may differ from country to country. In general, though, this is what an electronic funds transfer looks like: 

1. Your customer finishes your checkout process and pays via a bank/electronic funds transfer (EFT). 
2. The customer then uses the bank account details you provided, typically accompanied by a unique reference code designated explicitly for that customer. 
3. Your customer then instructs their bank to transfer the relevant amount from their accounts to yours, using this reference code to indicate the purpose of the transfer. 
4. A simple funds transfer between their bank and yours completes the transaction. 

Digital wallets 

Often referred to as mobile wallets, these services function on smartphones, tablets, and smartwatches. These virtual wallets include popular services such as Apple Pay, Google Pay, and Samsung Pay, allowing people to pay for items at vendors or online. 

The basics of digital wallets 

Digital wallets have become famous in recent years, providing people with a convenient and straightforward way to make online and offline payments. Utilising a variety of information storage tech, it transforms a mobile device into a virtual wallet. 

 More than that, these digital wallet applications give a mobile device the same capabilities as a contactless bank card. Its popularity, in part, is thanks to the added security measures it allows for and often safeguards including biometric scanning. 

Digital wallets: How do they work? 

Using a digital wallet is equally as simple as most online payment options and, in general, requires input from the user via biometrics, following a selection of which stored payment method to use. 

 Think of a digital wallet as a digital brain that stores the relevant information for various online payment methods. All that’s needed is the selection of which to use, and the rest happens in the same fashion as a contactless card payment. 

1. For online payment, an individual simply proceeds through your business’s offered payment gateway and then selects to pay via a digital wallet.  
2. Following this, a provided list of digital wallets is given, and one is selected, followed by the engagement of the mobile wallet and the selection of payment method. 
3. Behind the scenes, an instant bank transfer occurs according to the chosen process. 

Scan-to-pay 

Bridging the gap between mobile payments and accepting online payments even further, scan-to-pay transactions involve a quick-response (QR) code and enable quick, convenient online purchases. 

The basics of scan-to-pay online payments 

Although QR codes are used for a nearly endless variety of things, they prove very beneficial to the world of online payments. Valued at $9.98 billion in 2022, this tech has demonstrated that businesses need to focus on payment methods that offer simplicity, speed, and security. 

Scan-to-pay: How does it work? 

Although the mechanics that go into QR codes for payments can be confusing, this is an easy-to-follow rundown that does not get too technical. 

1. The first step is to choose a payment service provider (PSP) that supports QR code payment systems. 
2. After setting up a merchant account with the chosen provider, the account gets linked to a QR code, enabling it to receive payments. It is worth noting that some providers don’t require you to set up a merchant account. 
3. Next is a simple configuration of the provided QR code-generation feature, where the platform will ask you for payment details. 
4. Once you’ve entered these details, you can go ahead and generate a unique QR code linked to your account. 
5. Finally (after testing the code, of course), you can deploy it, giving customers another way to pay and adding another way to receive payments online to your arsenal. 

Buy now, pay later (BNPL) 

BNPL services allow customers to make purchases while deferring payments over some time through an instalment plan, with roughly 38% of users claiming it will enable them to break up payments, increasing manageability. Offering this type of transaction improves affordability for your customers while increasing earning potential for businesses. 

The basics of buy-now-pay-later (BNPL) 

Also considered invoice payments, a BNPL transaction is a loan that a company offers to customers, allowing them to make purchases on credit without needing a credit card.  

 Typically, these BNPL services partner with retailers to offer customers the flexibility to complete online payments. This is often done without interest or minimal interest charges. 

BNPL: How does it work? 

This alternative payment method allows customers to not commit to a full payment upfront and enables them to split payments. These services operate based on a short-term loan offered by BNPL services as a third-party payment provider to businesses. 

 After selecting to pay via BNPL, a customer creates an account with the respective provider and is then given terms and conditions to accept specific to this transaction. If accepted, the BNPL service will pay the full amount on behalf of the customer. The customer then repays that amount to the BNPL service according to the arranged terms and conditions. 

South Africa’s online shopping industry is booming, with 2024 being a breakthrough year for eCommerce. There are currently 32.55 million eCommerce users in the country, which is expected to increase by 6.38 million users this year.  

So, clearly, there’s no better time for businesses to start selling online and, as a result, offer internet payment methods to their consumers. If you’re looking to expand into the eCommerce space or simply want to know the best way to purchase online, then keep reading.  

This guide covers why online payment methods in South Africa are important, a breakdown of the top payment options, and a few FAQs. Before we get into the nitty-gritty, you might also want to know how to set up online payments for small businesses.  

Why should you provide online payment options? 

Firstly, online shopping and banking are growing steadily in South Africa, with more than 70% of the population shopping online. All trends point to a steady increase in SA eCommerce, ranging between 20-35% annually. It’s predicted that 47% of offline shoppers could shift online within the following year. 

With so many promising trends and statistics, businesses should be running at the opportunity to provide South African consumers with online payment methods right now. Besides that, contactless and cashless payments are taking the market by storm as they are safer and more convenient than cash.  

 Have a look at the following benefits of online payments:  

Improved satisfaction 

Digital payments are more convenient since they can be made at any time from any location, which is faster and safer. All these factors lead to improved satisfaction for online shoppers. The risk of human error, unsatisfactory customer service, and long waiting lines common to brick-and-mortar stores are lowered or eliminated.  

Faster checkout 

One thing about an electronic payment method you can’t deny is how fast it is, especially compared to traditional methods. With a swift click of a button, you can make an instant payment. From a business perspective, this instant clearance can improve cash flow since outdated methods like cheques take several days to clear.  

Greater sales

Digital payments make it easier for consumers to purchase goods and services using their preferred method of payment, which leads to increased sales. Also, new online payment methods, such as Buy Now, Pay Later (BNPL), allow customers to buy goods that they normally wouldn’t pay for once-off due to affordability and budgeting.   

Lower costs 

Electronic payments are generally less expensive than traditional ones. They lower the need for postage costs, reduce the use of materials such as ink and paper, and decrease labour costs and bank fees. The costs of processing invoices are grossly underestimated, and this is where your business can save money by using digital payment plans.

Also read: Payment gateways in South Africa (2024).   

Most popular online payment methods in SA 

With all the reasons why electronic forms of payment are better than traditional methods, let’s look at the top ones used in South Africa. 

1. Credit cards

As of January 2024, credit cards have been the most common payment method for online shoppers in South Africa. 43% of all online purchases were completed using a credit card.  

Credit cards are payment cards issued by the bank which allow you to purchase items using pre-approved money that you can spend from the bank. You then repay the bank with monthly instalments (with interest fees).  

They allow consumers to pay for purchases at any time (so you don’t have to wait for your salary) in a convenient and secure way, making it a well-liked electronic payment method. 

2. Debit cards

Debit cards are just as popular as credit cards, allowing fast and easy payments directly linked to a bank account. So, instead of spending the bank’s money, you will be using their own capital to purchase goods on the internet.  

Although many South Africans use their debit card for online payments (58% as of March 2023), it’s still not as safe as credit cards when shopping online. If a criminal gets hold of your PIN or account information, they can very well empty your account.  

Nevertheless, it remains a common digital payment method among South Africans with generally lower processing fees than credit cards.  

6. Instant EFT payments

Instant EFT payments allow consumers to pay for goods and services electronically via internet banking. This online payment method is often offered by third parties in partnership with eCommerce stores. Ozow Instant EFT and PayFast are excellent gateways for immediate EFT payments in South Africa. 

With 57% of South African internet users shopping online, it’s no surprise that many are choosing to pay with instant EFT as it’s straightforward and rapid. It’s also a secure way to pay online, as your bank will send you an OTP (one-time-pin) or mobile authentication to verify payments.  

7. Buy Now, Pay Later (BNPL)

Buy Now, Pay Later (BNPL), also called a “point-of-sale loan,” is a short-term loan that allows you to pay for goods online, usually in monthly installments. Apps such as Payflex, PayPal, and PayJustNow are examples of platforms that offer this service. Thanks to these online payment options, consumers can purchase something immediately and then pay in instalments.  

This is great for many South Africans who may not have the means to purchase something pricey immediately, such as furniture, fashion items, and other expensive luxuries. One thing to look out for is the hefty penalties you’ll be charged for late fees and insufficient funds.  

However, due to the rapacious interest rates demanded by the credit industry, BNPL products have become popular and continue to grow in South Africa. This growth is also driven by digitalisation, an increasing working-age population, and its appeal to Gen-Z and millennials.  

Furthermore, South Africa’s BNPL market is set to expand at a cumulative annual growth rate (CAGR) of 35.1% between 2022 and 2027. 

8. PayShap

PayShap is one of the latest digital payment solutions, allowing you to pay and get paid in an easy and fast manner. You can receive immediate payments straight into your bank account from anyone, regardless of the bank they use. With its initial roll-out on 13 March 2023, PayShap is quickly gaining recognition among South Africans for its convenient and immediate online payments and real-time services.  

 You need to register for a ShapID before making any transactions, and these can take place between Absa, Capitec, Discovery Bank, FNB, Nedbank, Standard Bank or TymeBank. So, it can be used by anyone who owns a bank account, which likely contributed to its rapid uptake since its launch. To put that into perspective, PayShap managed to process nearly ten million transactions to a value of over R6.6 billion in such a short time.  

 There are currently over two million active ShapIDs in the country and this is expected to increase.

9. Cryptocurrency

Cryptocurrency continues to act as a viable means to pay for goods and services. As for South Africa, there are about six million (or 10%) of its population who own a crypto asset. As such, this digital payment method will likely grow in popularity, and its market is predicted to grow by 7.86% annually between 2024 and 2028.  

More and more online retailers and brick-and-mortar stores are starting to accept cryptocurrency as payment. Transactions made using crypto are only possible through a cryptocurrency wallet. Wallet applications are installed on your computer or mobile device, allowing you to access your crypto.  

 You can pay from anywhere with fewer fees, anonymity, and a reduced need for third-party involvement. Note that once you pay via this method, it cannot be reversed. Also, cryptocurrency is not regulated; its value changes over time, and there’s a risk of loss.   

10. QR code payments

A Quick Response (QR) Code Payment is a contactless payment method made possible by scanning a QR code from a mobile app. For this type of payment to process, you’ll need a smartphone with a camera and internet access. One security concern is that this method may be vulnerable to phishing scams if not encrypted. 

South Africa is no stranger to the growing trend of using QR codes. Scan to Pay is currently the largest QR ecosystem in the country, facilitating an average of 12 million transactions per month. SnapScan, Zapper, and Netcash Scan to Pay are other excellent options for the payment method.    

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

By Charles Pittaway, MD of Netcash

Now that the dust has settled after the pandemic, one of its most enduring legacies is the wider usage of mobile and contactless payments around the world. Global research from Accenture shows that more than half (56%) of consumers surveyed are using digital wallets. Although card and cash usage remains high across the globe, mobile payments are becoming the preferred option for many consumers.

Adoption has soared in South Africa, too, with consumers and businesses across the board looking for more streamlined, convenient and secure ways to transact. This has been spurred on by trends such as the rapid growth in card-not-present transactions, online shopping and omnichannel options like buy online, pick up instore.

With customers embracing a digital lifestyle, they increasingly expect companies of all sizes to offer them a choice of easy payment options. Mobile wallets are becoming popular with a customer who wants transactions to be quick and hassle-free. Mobile payments makes life more convenient because the customer doesn’t need to carry cash around or capture card details across multiple sites and apps.

To keep up with consumer expectations, companies of all sizes need to be able to support their preferred payment options. While mobile payment options such as scan-to-pay solutions are on the rise, some people still prefer to pay with cards or cash. Others may want to pay using instant or bank EFT, and some want to pay at a convenient venue like their local retailer.

Meeting the expectation of anywhere, anyhow and anytime payments used to be complex and expensive. In the past, the mobile payments landscape was highly fragmented. Businesses couldn’t easily support the numerous QR code and contactless payment options in the market, creating friction for merchants and consumers alike.

But the payments sector has since taken great strides towards standardisation and ensuring wallet interoperability. It has also become a lot simpler to accept QR code payments, without the need for special payment terminals, complicated integrations with accounting and point of sale systems, or steep monthly fees and transaction costs.

That has cleared the way for even the smallest businesses to accept mobile payments. The benefits are significant. The technology can speed up the checkout process and reduce the need to handle cash, which can save time and reduce errors. Customers can simply scan to pay for goods and services, making the process faster and more efficient.

Transacting via QR code is also more secure than using physical cards. Consumers are still effectively paying by card, even if they don’t need to present the plastic. As such, they benefit from the protections the card companies and banks offer consumers and merchants. Removing the physical card from the transaction reduces the consumer’s exposure to risks such as card skimming.

Mobile payments also help businesses to increase sales. A seamless checkout experience encourages customers to complete their transactions. Additionally, mobile payments can help businesses reach new customers who prefer to pay with their mobile devices. By accepting mobile payments, businesses can tap into a growing market of tech-savvy customers who value convenience and efficiency.

We’re just at the start of the digital and mobile payments revolution. Merchants that can support the customer’s expectation for a seamless and convenient payment experience across every channel will thrive into the future. Businesses will thus increasingly look for solutions that make seamless payments and acceptance a reality.

Payments are a key part of the customer journey and can help companies to attract and retain customers. Today’s fintech solutions enable merchants to simplify the movement of money in their business, from presenting bills and processing the payroll, through to accepting payments across nearly any channel or instrument—giving them an edge at a time digital payments are a way of life.

Mobile payments have come a long way and will continue to evolve towards anywhere, anyhow, and anytime convenience. Businesses of all sizes need to support their customers’ preferred payment options, including mobile wallets, to keep up with customer expectations. By doing so, they can increase sales, attract and retain customers, and simplify the movement of money in their business.

Established in 2003, Netcash is a payment solutions provider delivering debit order, salary and creditor payment services to South African businesses and organisations. The company provides multiple innovative and integrated online payment solutions that are efficient, simple, and cost efficient. Netcash is registered with the FSCA, PASA and is PCI DSS Level 1 compliant.

www.netcash.co.za

Liana Clarke: Liana.Clarke@Netcash.co.za

Scan to Pay – A contactless payment solution

Over the last two years, contactless payments have become an essential payment method for businesses. Our changing environment has created the need to have less physical contact with payment devices when making or receiving payments. QR payments are one of the more popular options that have emerged because of the consumers changing needs.

What is a Quick Response (QR) code and how is it used to make payments?

The QR Code is an image that can be read by devices such as smartphones and tablet cameras. QR scanners on devices or within apps will either redirect purchasers to a payment gateway or use the associated wallet in the app to make payment.

What is the difference between a QR code and a barcode?

QR codes serve many purposes, but one of the more convenient uses is to accept payments from customers. The transaction is encrypted, making it a secure way for customers to pay. Whilst QR codes make it easy for customers to scan and make payment, barcodes mostly track inventory, the cost of an item, and can only be read in-store by the retailer.

How does QR Payments work?

Netcash’s Scan to Pay solution allows customers to make payments with their smartphones by simply scanning a unique QR code using a wallet or banking app. Payments are made from a mobile phone, directly into your Netcash account and confirmation of payment is sent to you via email or SMS.

This solution makes it safe and easy to make payments and receive payments in-store, online and on the go.

Customers can choose from multiple wallets and banking apps to scan the unique QR code with ease. All the purchaser is required to do is open the wallet or banking app and scan the QR code. This will invoke the payment process.

Regardless of whether you’re a small or large business, online or in-store, at markets or on business premises, Scan to Pay is the perfect solution to allow hassle-free contactless payments.

Offer your customers a safe, secure, and contactless payment method today!

About Netcash

Established in 2003, Netcash is a payment solutions provider delivering debit orders, salary and creditor payments, Pay Now, eCommerce, and risk report services to South African businesses and organisations. The company provides multiple innovative and integrated online payment solutions that are efficient, simple, and cost efficient. Netcash is registered with the FSCA, PASA and is PCI DSS Level 1 compliant.

netcash.co.za

Netcash and Cloudone.mobi have announced a partnership to make it faster, simpler and more convenient for small and medium businesses in the hospitality and retail sector to accept and reconcile payments. Included are contactless mobile payments using South Africa’s most popular QR code applications.

Tight integration of TallOrder Point of Sale (POS) software and the Netcash Pay Now payment platform enables TallOrder users to accept hassle-free contactless payments with a scan of a QR code linked to the POS system. QR code payment services and apps that are supported include Absa, Capitec, FNB Pay, Masterpass, Nedbank Scan to Pay, Snapscan, Standard Bank, VodaPay and Zapper.

In addition to QR payments, the platform also enables acceptance of debit and credit card payments, Instant EFT, Bank EFT and retail payments using a single interface. Merchants can now give their in-store, phone-in and eCommerce customers a wide range of payments options without the high transaction costs and complexity of managing multiple payment ecosystems and platforms.

TallOrder POS integrates with cutting-edge card readers, allowing small businesses to easily accept and process payments from card-carrying customers. It enables businesses to extend their revenue stream by allowing customers to order and pay directly from any device and in any location. A restaurant can, for instance, accept takeaway orders by phone or online and approve them for preparation and collection once the customer pays.

Netcash Statement Integration, meanwhile, saves time reconciling transactions and gives the retailer instant information about transactions. The merchant can reconcile invoice payments to accounting software off a single statement. This helps to save time, increase accuracy and eliminate the risk of misallocation.

“The partnership between TallOrder and Netcash relationship offers small business owners an integrated payments and POS solution that will help them grow their businesses and offer a more convenient payments experience to their customers. We are pleased to work closely with a partner that shares our commitment to improving payment processes for young startups and small business owners,” says Charles Pittaway, Netcash MD.

About Netcash

Established in 2003, Netcash is a payment solutions provider delivering debit orders, salary and creditor payments, Pay Now, eCommerce, and risk report services to South African businesses and organisations. The company provides multiple innovative and integrated online payment solutions that are efficient, simple, and cost efficient. Netcash is registered with the FSCA, PASA and is PCI DSS Level 1 compliant.

www.netcash.co.za

Consumer adoption of QR code payments has accelerated during the pandemic, partly due to merchants and consumers looking for contactless ways to transact as opposed to cash or cards. Yet there are still many myths about the technology, with some small and mid-sized companies believing that adopting QR codes in their business will be complicated, expensive and insecure.

Before we debunk some of these myths about contactless payments, let’s take a step back and look at the technology. Short for Quick Response barcode, a QR code is a data-rich code that can be read by digital cameras, including those that come standard with most smartphones. It can contain a range of information, including a menu, a coupon, a URL, contact details, payment or billing information and much more.

QR codes have been in South Africa for a while, with fintech companies pioneering the technology as an instrument for making and accepting payments. To use a wallet, customers download an easy-to-use app from their smartphone app store and then add the details for their debit or credit cards. They can then scan the QR code and pay from their phone.

Today, it’s not just fintech innovators who offer QR codes for payments, but also credit card companies and most South African banks. QR code payments have become a standard feature in smartphone banking apps. Yet myths prevail about QR codes among consumers and small to medium sized businesses. Let’s look at why these perceptions may be outdated.

QR codes are a gimmick for early adopters or a new way for fintechs to make money

Many consumers and merchants still think of QR code payments acceptance as a flashy technology for early adopters. Yet QR codes are found nearly everywhere today – printed on bills from major utility companies, at the point of sale at major national supermarket chains, at checkout on e-commerce stores, and in parking lots at shopping malls.

QR codes streamline transactions by allowing people to scan to pay. This can speed up transactions in face-to-face settings like shops or the delivery of a service at a customer’s home. It can also help small businesses get paid faster when invoicing customers. If you put a QR code on your invoice, your customer can scan and pay without needing to log onto online banking or inputting card details in a third-party payment gateway.

The technology is complex

Many small companies think it will be difficult and expensive to implement a QR code payment solution. They imagine it will involve special payment terminals, complicated integrations with accounting and point of sale systems, or steep monthly fees and transaction costs. They are also concerned that they will need to support numerous digital wallets and apps.

The truth is there are solutions that offer low transaction costs without tying you into a contract. They allow you to generate QR codes and accept payments with nothing more than a standard iOS or Android smartphone. These solutions are also interoperable with most QR code wallets, which means your customers can pay with whichever wallet or banking app they prefer.

The risks of fraud and abuse are high

Some merchants and consumers are concerned that mobile and digital transactions are riskier than cards and cash. However, transacting via QR code is safer than using physical cards. Given that consumers are still effectively paying by card, even if they no longer need to present the plastic, the protections the card companies and banks offer consumers and merchants still apply. For example, illegal or fraudulent payments can still be disputed.

In addition, removing the physical card from the transaction reduces the consumer’s exposure to risks such as card skimming. Consumers will also generally need to authenticate any transactions with a fingerprint or PIN code. The built-in intelligence in some apps will add another layer of security by requesting a one-time PIN when payment patterns change (new merchants, different locations, etc.).

Supporting consumer choice

When it comes to QR code functionality, a robust payments solution will make it easy to display QR codes at pay points, quotes, invoices, statements or till slips and to generate a QR on a smartphone app. It should support multiple wallets and banking apps so customers don’t need to download yet another app to process a payment.

Integration with point of sale and accounting solutions will further streamline the payments environment. Netcash, for instance, reconciles payments easily with several leading accounting and ERP solutions. What’s more, each branch or till point can have its own QR code to track payment receipts at point of sale.

By making it more convenient for customers to pay means merchants can get paid faster and with less hassle. It also reduces the risk of losing a sale because the business doesn’t support the customer’s preferred payment method. Merchants should look for a payment solution that makes it easy to accept a wide selection of payments types, including bank and instant EFT, card, QR codes, cash and Visa Click to Pay.

– Percy Schultz | Sales Director at Netcash

About Netcash

Established in 2003, Netcash is a payment solutions provider delivering debit orders, salary and creditor payments, Pay Now, eCommerce, and risk report services to South African businesses and organisations. The company provides multiple innovative and integrated online payment solutions that are efficient, simple, and cost efficient. Netcash is registered with the FSCA, PASA and is PCI DSS Level 1 compliant.

www.netcash.co.za