In 2020, the South African ecommerce market grew by 66% and is now expected to be valued at R225 billion by 2025.
Established online payment providers have always tailored their offerings to bigger businesses, making it difficult for small businesses to make a mark online.
For context, one of South Africa’s largest payment gateways charges 3.5% (excl. VAT) per transaction. They then charge a further R8.70 per payout when a merchant transfers money to their bank account. Again, excluding VAT.
To a small business owner navigating the daily uncertainties of running a businesses, these online payment methods may not be worth it. As a result, small businesses are missing out on a rapidly growing market.
But not all financial service providers are leaving these businesses to fend for themselves. iKhokha has stepped in with an online payment solution to help small businesses thrive.
According to Andrew Roy, Product Manager at iKhokha, the mandate was given to bring the product to market under tight timelines to enable more small businesses to participate in this thriving digital economy.
“We wanted to provide our merchants with online and offline payments, so they can process payments for all facets of the business under one iKhokha umbrella,” says Roy.
The result is iK Pay Online – a planned stable of online payment solutions for small businesses.
The first of the iK Pay Online products – the iKhokha Payment Gateway – recently launched out of beta and is already processing a quarter of a million Rand per month in merchant transactions.
WooCommerce and WordPress users now have free access to iKhokha’s WordPress payment gateway. As with their card machines, iKhokha charges no monthly rental fees, offers no contracts and charges no setup costs for their product.
Even better news for small businesses is that iKhokha has set their transaction rates at 2.85% (excl. VAT) – the lowest starting rate in Africa – with a nominal settlement fee of R2.50 per payout.
While this payment gateway provides more realistic margins for small businesses, iKhokha plans to release a series of products into the iK Pay Online stable.
“This is part of a larger ecommerce strategy. It’s the first in a series of products that we’ll build out over the next five years to make it easier for small businesses to succeed online,” says Roy.
For more on iKhokha’s payment Gateway, please visit www.ikhokha.com/pay-online.