NuPay makes microfinance a breeze

The microfinance industry in South Africa is extremely important to many South Africans who are unable to receive loans from banks. The payment stream in South Africa used predominantly by NuPay is the early debit order (EDO) stream.

NuPay is the largest authenticated early debit order (AEDO) service provider in the world. We have 65% market share of all AEDO transactions in South Africa. Our merchants can load futuredated transactions on a client’s bank account by registering a contract using a terminal that we provide. What makes this product unique is that AEDO is non-disputable and non-reversible, as the client must swipe or dip their card and insert their PIN into the terminal to authenticate the transaction.

South Africa has a crime problem. In the 2017/2018 financial year, 20 047 robberies at non-residential premises were recorded. For 81.8 % of all robberies reported in this period, cash was the targeted item (based on information from the 2019 SAPS crime report). While these statistics highlight the risk faced by small businesses, there are ways to mitigate the risk these businesses face in regard to cash handling.

One of the most strategic solutions to implement would be to change from cash transactions to electronic payments. Not only does this discourage crime, as businesses will not be forced to keep cash on hand at their premises, but it also provides a cost benefit when the cost of cash deposits is considered, as well as saving time. Enter NuCard, which is a prefunded card, like a gift card, which a merchant can use and provide to their customers. A merchant can simply load funds on the NuCard, which can be used for purchases at any outlet that processes electronic payments and can also be used for cash withdrawals at any ATM. You can also extend the safety of electronic transacting to your employees with NuCard. NuCard can be used to load weekly wages onto a card issued to employees. This is a simple, effective, secure means of payment that utilises a card and PIN much like a bank-issued debit card for the unbanked.

Considering South Africa’s economic climate, it would be prudent for small businesses to consider the financial saving of avoiding cash deposit fees, currently R2 per R100. A single deposit of R10 000 costs the average business R200. Depositing this amount twice a week would cost your business R1 600 a month.

Coupled with the risk of transporting cash and the time spent away from the business, electronic payment solutions provide a cost saving, are time efficient and a safe solution for all small businesses. Removing the risk of cash fraud within your business is also a benefit of electronic payment processing. NuPay has a wide offering of products that address the unique needs of the South African small business. The NuPay point of sale (POS) machine provides businesses with an electronic platform where customers can use a normal debit or credit card to pay for goods or services. The funds are deducted from the customer’s bank account and are settled daily into your business’ bank account. The NuPay POS system can be used within almost any type of retail environment. This allows your business to process straight, or budget credit card transactions as well as real-time debit card transactions. Further extend the security of electronic transacting to your customers by eliminating the need for customers to have cash on hand in order to pay for goods or services at your premises. In an environment where multiple point of sale devices are in use, you are easily able to identify the origin of a transaction by a unique device ID that is assigned to each of our point of sale devices. This allows for cashier identification and accurate reconciliation for each point of sale device.

NuPay also provides secure transacting on the move with our NuPayGO device. This is a mobile point of sale device (mPOS), paired via Bluetooth with a smartphone or tablet, that allows for card processing, anywhere, at any time. NuPayGO eliminates the need to accept cash payments when your business is exhibiting at a temporary pop-up location or industry convention. You will still be able to provide proof of payment to customers via SMS or email directly from the NuPayGO App. The NuPayGO App also offers flexible realtime reporting to keep track of your transactions anywhere at any time. The NuPay product range further extends into a loan management system for our merchants. This system helps our merchants with the day to day running of their business by providing loan feasibility and interest calculations, repayment options, etc. This also assists the cash lender to comply with the National Credit Regulator. In a small business environment where repeat payments are made in lieu of goods and services,uPay offers comprehensive reporting and payment allocation tools. This allows your business to build a database of all returning clients and their payment patterns. In terms of support, NuPay provides on-site training and support via our national 24 hour/365 days contact centre. We provide expert on-site support as well as account managers who will ensure that your business is able to make the most of NuPay’s solutions to suit your business needs. With our national reach, we can provide our services throughout South Africa. Join NuPay in safeguarding the cashflow of your business, employees and customers.