Zapper and Stitch team up for scan payments directly from linked bank accounts

Zapper users can now link their bank accounts in its app to pay merchants by scanning a QR code, the company has announced.

The company has added Instant EFT payments using the Stitch LinkPay application programming interface.

This complements Zapper’s support for debit and credit cards, and Ozow Instant EFT payments.

Previously, Zapper customers needed to log into their bank accounts every time they initiated an Instant EFT payment.

Stitch lets Zapper clients link their Absa, Capitec, FNB, Nedbank, and Standard Bank bank accounts to the app through its API.

“Our work with Stitch continues our commitment to ensure Zapper merchants can offer as many payment options as possible,” said Zapper CEO Brett White.

“By providing a simple, secure Instant EFT option, customers can now still use their favourite scan-to-pay method without relying on a bank-issued card.”

White said that in a tougher economy, Instant EFT helps consumers keep a tight rein on their balances.

“We also see this as another way we can help eliminate any barriers to payment for our merchants, who also need every advantage in this economy,” he said.

Stitch launched LinkPay in April 2022, laying claim to being the first product in Africa to offer one-click Instant EFT payments.

To link an account in the Zapper app, customers select “Link bank account” under the “Payment methods” settings.

There is also an option to set this as the preferred payment method.

Users are prompted to select their financial institution and log into their bank account using their online banking details.

After authorising with multi-factor authentication, such as an in-app approval or OTP, the account will be linked, and any future payments can be made in one click without logging in again.

Stitch has assured MyBroadband that the banking information requested by its system is secure.

“We don’t share usernames and passwords with anyone,” a spokesperson told MyBroadband.

“All user details are stored in a secure, encrypted vault hosted by Microsoft Azure.”

Stitch explained that it, and the websites that use its service, only hold a randomly-generated token representing the username and password.

“When users return to make a future payment, this token is used to identify them, and their details are then passed from the vault to the bank without the website having access to them,” it stated.

“We also conduct regular penetration tests using external, CREST-certified vendors to ensure that our systems follow the strongest security practices available and that they’re protected against attackers.”

Stitch CEO Kiaan Pillay said that with LinkPay, Zapper could provide a significantly better experience for customers paying via Instant EFT.

Pillay explained that Instant EFT is cheaper for sellers.

“When more customers choose to pay via Instant EFT, [merchants] save on expensive card fees and fraud-related charges,” said Pillay.

Aside from its traditional scan-to-pay QR options for card payments — at physical points of sale or online — Zapper said merchants could accept several alternative payment options.

These include vouchers, mobile wallets, and third-party options integrated onto the Zapper network, including Instant EFT, buy-now-pay-later, and cryptocurrency wallets.

Now read: How SnapScan and Zapper are surviving South Africa’s tap-to-pay onslaught

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Zapper and Stitch team up for scan payments directly from linked bank accounts