These mobile payment platforms do not need a bank account or credit card
Business Insider SA – 21 June 2022
- For the population in rural areas who don’t
have an address or paperwork to prove it, FICA becomes impossible.
- Those who are ‘unbanked’ now have more options
with financial service providers who are targeting them.
- Here are four mobile payment platforms to use
without a bank account or credit card.
You may have heard the term “unbanked” in the last few years, referring
to the population that do not have their own bank accounts.
Opening an official bank account comes with the expected paperwork that
is the FICA process. But it can be challenging for those who live in rural
areas and don’t have official addresses or paperwork to prove it.
That, among other barriers to entry, has given rise to a range of
financial services that don’t require a bank account or credit card to make or
receive payments.
Here are 4 examples of mobile platforms that don’t need a bank account
or credit card to use:
Spot Money
The Spot Money app relaunched in 2021 as South Africa’s first ‘open
banking platform’. It is not tied to a bank and offers deals from third
parties. South Africans and foreign nationals can open transactional accounts,
generate virtual cards instantly, make payments or purchases with those
credentials or apply for a physical debit card.
The account can be topped up through EFT payments, using the Ozow direct
bank transfer option, or a linked card. It supports buying airtime, prepaid
electricity, paying bills and buying digital vouchers. Users can also send each
other cash instantly from their accounts, which could potentially be used to
pay a domestic worker or gardener monthly. Once you apply for a contactless
debit card, it can be used at physical stores. The virtual and physical cards
are issued by Mastercard.
The key differentiator with the Spot Money account is that is incurs no
monthly fees, and all in-app purchases and payments are free. It also supports
other apps like Masterpass, Snapscan, Zapper and wiCode. Cashing out and
deposits over a R1,000 incur a small percentage.
uKheshe
The uKheshe app offers a wide range of services such as being a digital
wallet, the ability to pay or get paid via a QR code instantly, Tap to Pay on
Android devices, card issuing (virtual and physical via Mastercard), and
sending money across the border.
A user does not need a smartphone to create a digital wallet and can
transact via USSD, otherwise, Whatsapp chat banking and an app is available. It
supports payments between people or merchants, cross-border exchange, crypto
transfers, paying for prepaid services or bills and insurance payments. Top-ups
and cash-out channels include EFT, retail, digital wallets, cash agents, card
top-up and wallet-to-wallet.
When the service first launched, it was positioned as a way to ‘pay it
forward’, for tipping or to pay car guards when one does not have cash, via a
quick QR code scan.
uKheshe has evolved to be a low-cost solution for contactless payments
with end-to-end encryption, KYC verification, and value-added services, backed
by Mastercard secure payments.
Mukuru
Mukuru is primarily a money transfer service that allows South Africans
to send money to 17 countries within Africa, the UK, China, India, Pakistan,
and Bangladesh. Other services include applying for a debit card, sending
groceries and as an enterprise payment platform.
Users can apply for a Mukuru Card that will allow them to shop online,
receive a salary, save money, pay for money transfers, withdraw or top-up cash.
Users can also swipe it for free at retailers and can buy airtime or pay for
DStv services. Cash can be requested at till points at most supermarkets, Game,
Makro, and Builders for anything between R3.70 and R19.99.
The Mukuru Card be collected at selected Clicks branches Mukuru branches
and agents nationwide. Activating it requires a R100 deposit. Unlike the other
services mentioned, the card carries a monthly fee of R27, and a once-off
activation fee of R46. While swiping at stores, purchasing SA airtime, and
receiving EFTs are free, other transactions carry a nominal fee.
Users from South Africa, Malawi, Zambia, Zimbabwe or Botswana can send
groceries and stationery to friends and family in Malawi and Zimbabwe,
available for pick-up at selected retailers or remittance partners in those
foreign markets.
Telkom Pay
Telkom Pay.
The Telkom Pay digital wallet is built inside Whatsapp and allows South
Africans with a mobile number to easily make transactions without having to
interact in person. Users need a South African ID number to verify themselves
at sign-up, and don’t need an existing bank account to make use of the wallet.
Sign-up can also be completed through USSD or through a QR code.
The digital wallet allows users to generate a virtual card that can be
used for payments, instead of having to use a physical debit or credit card.
Accounts can be topped up via EFT, Nedbank ATMs or at Pick and Pay. Money can
also be sent and received between any SA mobile number, and the limit for this
is capped at R3000 per day.
It also supports Scan-to-Pay with QR code, and similar to a please call
me, users can send a “please pay me” via Whatsapp. The service also supports
sending and receiving money between neighbouring countries. Additional services
include buying vouchers for gaming, entertainment, education, transport,
shopping, or gifting.
www.samigration.com