About
Subscribe

Leaf, Sebros partner in R165m deal

By Stephen Whitford, ITWeb contributor
Johannesburg, 02 Mar 2004

Leaf and Sebros Telecomms have partnered in a R165 million black empowerment deal to provide prepaid cellular and fixed-line airtime and electricity e-vouchers via handheld point-of-sale (POS) devices.

Richard Makhafola, Sebros Telecomms GM, says the devices will provide e-vouchers, prepaid electricity and assist in free basic electricity to prepaid consumers. Later, the devices will also double as mini-ATMs. The devices are expected to be used predominately in townships, rural areas and informal settlements.

"Our aim is to target the general dealers, caf'es, convenience stores and other merchants in previously neglected markets. These dealers will offer customers the advantage of paying for airtime or electricity, in-store merchandise as well as withdrawing up to around R300 cash without having to travel far to do so."

Makhafola says the devices will make it more convenient for customers to withdraw money and purchase airtime and electricity, and reduce the amount of cash held by merchants in these areas.

Merchants will have two options in purchasing the handhelds, he says. "The merchant will have an option to buy the POS device and receive a higher margin on the e-vouchers sold, or take a second option of renting the device and receiving lower margins."

Sebros is testing the devices with seven merchants in the greater Pretoria area and two in the Western Cape for two weeks. Sebros will then roll-out 25 000 devices into the Western Cape, KwaZulu-Natal, Free State and Gauteng over the next year, before moving onto the rest of the country.

Leaf Wireless key accounts manager Eugene Pretorious says the devices are Europay, MasterCard and Visa compliant. Leaf will provide Sebros with the Belgian-manufactured POS handhelds, as well as taking care of the Leaf-provided back-end system, including billing and payment.

Share