FinTech disruption is allowing digital transacting between bank accounts, removing the dependence on credit cards.
According to Thomas Pays, CEO of i-Pay, there is a global move towards a cashless society with more businesses looking for solutions to be effective in this global digital economy.
“In South Africa and the rest of the continent we can take advantage of trends happening elsewhere in the world and leapfrog what others are doing. With people increasingly willing to digitalise their lives, we have already seen one local bank opening five thousand new accounts per day as customers embrace a more digital and connected way of living.”
He explains that throughout Africa, the evolution of mobile money is evident as companies embrace solutions that cater for the sizeable unbanked population. For example, in South Africa with a population of 49 million, only 13 million have active credit cards versus 24.9 million having active bank accounts.
“Fintech disruption is removing the dependence on credit cards in e-commerce and allowing digital transacting directly between bank accounts - enabling a greater number of those 24.9 million banked users to participate in the digital economy.”
All of this leads to a focus on developing innovative payment solutions, removing friction and providing customers with safe and simplified payment mechanisms.
For i-Pay it is about making it simpler and more secure to pay by means of EFT when shopping online. With i-Pay, a customer is able to make fast, secure electronic payments straight from a South African bank account. Furthermore, payments can be made via SMS, email, QR code, or push payments thereby removing the need to have any interventions from bank staff.
Thomas explains further:
“Our solution provides numerous benefits for buyers and merchants. It is accessible through any Web-enabled device and removes the potential for human error in transactions. There are no chargebacks and all personal data remains private as it is not stored.”
On a continent where accessibility remains key, innovative solutions like this will make all the difference.
i-Pay showcased their payment gateway at the recent Finance Indaba Africa, which Thomas says is one of the best run events of its kind in South Africa:
“Considering the calibre of delegates attending, one cannot afford to miss this event. As a business that is scaling fast, we felt it important to participate and share our insights on the future of payment technologies and how they are evolving in a digital environment.”