Mastercard partners with Hellopay to roll out SoftPOS in South Africa

By Pavithra R

Mastercard has announced partnering with Hellopay, South African payments facilitator and the financial services arm of the Hello Group, to roll out SoftPOS, a contactless acceptance solution that turns any NFC-enabled Android device into a physical point of sale. 

SoftPOS leverages Mastercard Tap on Phone, a simple and cost-effective digital payment technology developed for micro and small businesses who tend to operate in a cash economy due to the costs and complexity of obtaining the traditional point of sale devices. The solution turns Android smartphones into secure payment acceptance devices for contactless cards, mobile wallets and even smartwatches, with the requirement of any additional equipment or set-up costs.

The move aims to boost digital payment acceptance at small informal enterprises in South Africa while supporting consumers’ preference for touch-free payments amidst social distancing.

“The SMME market represents 98% of businesses in South Africa and has been deeply impacted by the pandemic. We recognise the overwhelming pressure that small business owners are currently facing and are committed to supporting them through COVID-19 and beyond by bringing our tools at a low cost and rapid time to market. Through our partnership with Hellopay, we can further support financial inclusion – especially among informal merchants –and help these businesses deliver new and best-in-class contactless consumer experiences using a device they already own: a smartphone,’ said Amnah Ajmal Sharma, Executive Vice President, Market Development for the Middle East and Africa.

Businesses can download the free mobile app and offer it to their customers immediately, providing them with a checkout experience that is flexible, seamless, intuitive and secure. The solution is ideal for low-value transactions and enables merchants to provide a faster checkout in store, as well as accept payment on delivery.

“Eliminating the need for a dedicated terminal and enabling the merchant to use their cellphone to accept card payments is revolutionary and a significant game-changer within the SMME sector. Lowering the barrier to entry for merchants to accept card payments is sure to result in a significant increase in the number of transactions settled via card. We are pleased to join forces with Mastercard to enable businesses like spaza shops, independent retailers, market stall traders, mobile servicemen and tradesmen to accept safe and secure contactless payments,” said Zunaid Miya, Managing Director, Financial Services Business at Hello Group.

Hellopay has a large merchant network servicing millions of customers in rural areas and under-served settlements. Its Tap on Phone solution is the result of a collaborative partnership between Nedbank, Mastercard, and SmartPesa.

Recently, Mastercard announced capital investment & partnership expansion with MoCaFi.