SnapScan is not too concerned about potential competition in the mobile payments space from global smartphone giants, following the launch of Samsung Pay in South Africa.
“We are very excited about Samsung Pay launching in South Africa together with Standard Bank, because it is part of the journey to moving more customers to the convenience of paying with their smartphones,” SnapScan told MyBroadband.
SnapScan launched in South Africa in May 2014, although the app had been operational since June 2013.
The app was launched in partnership with Standard Bank, and the bank ultimately acquired the developer of SnapScan, FirePay, at the end of 2016.
Standard Bank is one of two banking launch partners for Samsung Pay in South Africa. The other is Absa.
Samsung Pay and SnapScan are complementary services, the company told MyBroadband.
SnapScan works using QR codes, which you scan with your smartphone’s camera through its app for Android and iOS. The app is linked to your Mastercard or Visa payment card.
This effectively allows a merchant to accept credit card payments without needing a card terminal.
“Our biggest successes have been in de-cashing markets, reducing cash on delivery, simplifying check out at ecommerce stores, and improving collections for churches, charities, and billers,” said SnapScan.
SnapScan said the only overlap with card acquiring is in restaurants.
“What we offer in restaurants, however, is a means to pay your bill without needing to wait for the waiter to bring the card terminal.”
Competing against giants
On the topic of whether it can compete against the likes of Apple, Google, and Samsung in mobile payments, SnapScan said that device manufacturers will rely on traditional card acquiring terminals going forward.
“They have the advantage of scale and deeper integration into native software and applications,” it said.
“What they lack, specifically in Africa, is merchant and business acceptance. As a result, they are reliant on banks to issue card tokens to their wallets and to roll out a merchant acceptance network.”
SnapScan, on the other hand, is a potential solution for businesses where card terminals are not cost efficient or appropriate.
“Our in-app bill payment functionality has also been a huge success and cannot be replicated by device manufacturers,” said SnapScan.