Global payments company Mastercard has partnered with locally developed app SpazaApp, to integrate its digital global payment service Masterpass into the app in a bid to allow informal traders access to safer mobile payments solutions.
SpazaApp is a free mobile app that connects spaza store owners directly to bulk buying opportunities at large FMCG brands, including Unilever and Tiger Brands.
Tim Strang, CEO and co-founder of SpazaApp, was looking for a safer, cashless way to pay in the informal market.
"Discussions began when our Absa bank partners introduced us to the Masterpass team. The app solution proved to have the scale, efficiency and convenience we need to offer merchants a truly accessible, low-risk and affordable way to accept electronic payments from their customers and pay their suppliers."
The integration will see spaza customers download Masterpass from the iOS or Android app store, register, and load their credit, debit or cheque cards from any bank into the digital wallet.
When paying for goods, the customer will open the Masterpass app on their mobile device and scan the unique QR code that is generated on the SpazaApp retailer's smartphone.
"After shoppers enter their bank PIN number or 3DSecure code and card verification value number on their own device, the transaction is complete. Similarly, spaza shop owners use their Masterpass app to scan a QR code printed on the supplier's invoice, to pay for their stock on delivery at their store.
"Payment card information - including card details from Mastercard and other payment networks - is only captured once, eliminating the need to repeatedly enter these details each time they want to pay their bill," explains Strang.
According to a 2016 Nielsen report, SA's informal retail sector boasts R46 billion in annual sales a year, with more than nine million households regularly shopping at these stores.
"Too many informal micro-retailers are stuck, like their customers, in a cash economy that doesn't work for them," says Mark Elliott, division president for Mastercard Southern Africa.
"By matching up SpazaApp's extensive supplier and distribution network with digital payment and acceptance solutions from Mastercard, we are able to help these shop owners build a better future and serve their customers who are themselves demanding safer and more convenient ways to pay."
To date, SpazaApp has 4 500 registered users across KwaZulu-Natal, Johannesburg and Pretoria.
Strang notes the partnership allows the companies to combine their expertise and reach, and in so doing, uplift last mile traders and disadvantaged communities.
"The partnership also enables us to scale further in SA and gives us access to more global markets which we are planning on expanding into in the coming few months. Being part of the bigger Mastercard team also gives us access to the tech developments and work they are moving with, which we can consequently use on our platform to further enable our customers."
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