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Bank Zero, iKhokha accelerate SME digital inclusion

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 18 Apr 2023

Digital-only bank Bank Zero has signed a partnership deal with local fintech player iKhokha, to provide business customers with a card machine solution that integrates with Bank Zero’s zero-fee bank account.

iKhokha is a Durban-based technology company started by young entrepreneurs Ramsay Daly, Clive Putman and Matt Putman in 2012.

Known for its card machines and mobile point-of-sale devices, iKhokha recently expanded its app-based product offering to provide multiple payment methods across online and physical commerce.

iKhokha says its latest payment option, iK Tap on Phone, makes it easier for companies to accept secure card payments. In doing so, it opens the door to digital commerce for businesses that previously could not participate in the digital economy.

Bank Zero bills itself as the only local banking services provider to offer zero-fee bank accounts for private companies, close corporations and sole proprietors. The app-based bank says it has attracted a significant number of new customers in this market segment, with many businesses requesting card machines.

“Business banking has remained stuck in a quagmire of high fees, poor service delivery and no real choice,” comments Michael Jordaan, chairperson of Bank Zero.

“However, the landscape is rapidly changing thanks to innovative partnerships. Traditional banks focus on becoming platforms, which, in essence, forces customers to get products from that one bank. Bank Zero is different. We embrace ecosystem thinking and prefer to partner with like-minded providers to bring solutions to market.”

The process to sign up for iKhokha’s offering is simple, as Bank Zero customers do not require any additional credit checks and do not have to FICA again, according to the bank.

They can request an iKhokha card machine via the Bank Zero app or website. The devices are purchased outright, which means there are no monthly rental fees, and iKhokha will deliver the card machine directly to the business at zero cost.

“We aim to make doing business easier for businesses, by simplifying money movements and broadening access to financial services for all South African entrepreneurs,” says Matt Putman, CEO of iKhokha.

“We also want every iKhokha interaction to be a frictionless experience, and the partnership with like-minded Bank Zero enables us to extend that seamless experience to all of their business customers.”

According to iKhokha, business owners are always looking for ways to cut operating costs amid the challenging domestic economic environment, where input costs are rising, and subdued consumer spending is putting turnover under pressure.

Gabriël Swanepoel, Mastercard country manager in Southern Africa, notes: “As an established payment partner of both Bank Zero and iKhokha, we are excited to continue delivering technology-led innovations that enable digital acceptance of card-based payments for South African consumers.

“The ability to unlock new card acceptance opportunities for businesses, especially SMEs, which are vital to South Africa's economic growth and prosperity, is truly priceless.”

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