Several financial technology (FinTech) startups are helping to pave the way for new kinds of financial services in South Africa. Amid this shift, iKhokha takes the lead by offering small and medium-sized businesses (SMEs) across the country a compelling deal.
The Problem: Exorbitant Transaction Costs
High transaction fees and monthly card machine rental costs have historically discouraged small and medium-sized businesses from accepting credit cards. In today’s increasingly cashless culture, this avoidance may slow them down. The situation is improving, though. iKhokha, a market-leading fintech company, has developed a flexible system that might make card readers indispensable to your operations.
The Benefits of iKhokha
The goal of iKhokha is to make cheap transactions possible for every business in South Africa. In keeping with this goal, the company has just released a technology that automatically lowers merchant rates as transaction volume increases.
iKhokha CEO Matthew Putman says, “Our goal is to assist our customers in maximising their profits,” and the company has designed its pricing strategy to reduce transaction fees automatically as firms expand.
How Do Automatically Changing Transaction Fees Function?
The necessity for SMEs to negotiate for reduced rates is mitigated by iKhokha’s innovative pricing approach. Instead, iKhokha examines a company’s transactions every month to determine if they qualify for a lower price band, and if so, will immediately lower their rates.
“We’ve made it simple and transparent,” Putman says. When a store reaches a particular monthly number of sales, the rate drops automatically. They only need to get in touch with us after they get R100,000, at which point we’ll give them special pricing. Once a rate is dropped by iKhokha, it will never go up again, which is unprecedented in the industry and provides peace of mind to business owners.
SME Future Prosperity Through Your Actions
Small and medium-sized enterprises (SMEs) stand to benefit greatly from the FinTech industry’s potential to upend established financial structures. Small enterprises now have access to a low-cost, dependable, and scalable option thanks to iKhokha’s programme.
“By eliminating high transaction fees, we are empowering local businesses to grow and thrive in a cashless society,” puts Putman. iKhokha’s new pricing model is more than just a service; it’s an investment in the success of small and medium-sized enterprises (SMEs) in South Africa.
The digital revolution has made it possible for fintech firms like iKhokha to recognise and reward the success of small and medium-sized enterprises (SMEs), which has contributed to the expansion of the South African economy. They hope that by taking this step, they will inspire other fintech companies to do the same, creating an atmosphere where innovation and competition thrive.
About The Author:
Thabo Matlala is a fintech journalist with Africa Nova. A finance graduate, Thabo has an eye for exciting trends and startups disrupting the traditional South African landscape.
