With daily updates and measures put in place to help reduce the risk of spreading the deadly Coronavirus disease (COVID-19) in Africa, banks in South Africa are turning to cashless transactions as an alternative means of payment. Citizens and the general public are encouraged to use mobile money transfers, online payment, debit and credit card transactions as opposed to cash payments.
The co-founder of uKheshe, Clayton Hayward, a micro transaction platform that allows you to pay and get paid has announced a move for a cashless environment that is now possible for all South Africans regardless of remuneration or banking status. Speaking in an event Clayton said,
“While the initial intent was to address the 11-million unbanked or underbanked, cashless transactions have gained momentum in light of the unprecedented global health crisis. Cash is a possible contaminant, making a cashless environment a preferred and safer option.”
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With updates about the spread of coronavirus, he further reiterated that other online payment methods like electronic transfers, internet banking, mobile banking apps and USSD transfers are much preferable alternatives for curbing the spread of coronavirus, while also giving extra value to the users. In a statement released by the company they said,
“With a good understanding of what the majority of the market is currently facing, uKheshe has launched a 90 day ‘zero-rating cash management fee’ to assist merchants and consumers using the platform.”
uKheshe was launched in 2019 and it is the only micro-transaction platform to align with the requirements put out in 2009 by the South African Reserve Bank. It also provides e-money services to its customers, its partnership with both Mastercard and Nedbank has made it possible for the platform to offer a wide range of e-money services to the public.
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Speaking on this partnership Hayward said,
“Thanks to a strong partnership with Nedbank and Mastercard, uKheshe is the only card association acquiring platform that does not require a merchant to have a bank account. This is significant for the continent and will go a long way in terms of better servicing lower-income earners and growing the base of cashless consumers.”
It is also notable to know that only licensed banks are allowed to aid wallet-based flows of money , withdrawals and handle cash deposits. The Senior Vice President of Mastercard West Africa Ebehijie Momoh, explained that the platform uKheshe provides access to people without bank accounts or smartphones the avenue to receive real-time payment through the uKheshe card which has a Quick Response(QR) code linked to their phone number. Furthermore, she says that cashless platforms like uKheshe is very important for young businesses, especially women in business as “more than 55% of uKheshe’s active base are females with more than 10,000”.
Hayward in his final note concludes that,
“uKheshe is the best-placed platform to make a significant impact on the transformation of Africa’s cashless environment.”
