Absa started it Absa Mobile Pay appwhich allows users to turn their Android smartphone or tablet into a point of sale (POS) device to accept payments.
The bank launched the app alongside tech company Wizzit Digital.
Absa Mobile Pay is specifically aimed at small and medium-sized businesses looking for a cost-effective solution without monthly equipment rental or travel fees for POS terminal repairs.
Absa said the solution only requires the app to be downloaded from Google play storewithout the need for additional hardware, plug-ins, card readers or dongles.
The only requirement is that the device supports Android 7.0 (Nougat) or higher and has Near-Field Communication (NFC) capability for contactless payments.
Faisal Mkhize, Managing Executive for Relationship Banking at Absa Retail and Business Bank said the solution is simple and easy to use.
“The merchant just enters the amount due on their Android smartphone or tablet, and the customer can pay for the product or service by typing their contactless debit or credit card on the merchant’s device,” Mkhize said.
Merchants can securely accept any card payment with no limit on the amount. Only the buyer’s limits apply.
Contactless transactions over R500 require a PIN which can be entered into the app by the customer.
All transaction information can be viewed in the app, while merchants can also send customers a receipt via email, SMS or WhatsApp.
Mkhize told MyBroadband that Absa charges the merchant a fee of 2.75% of the transaction value.
All Absa bank accounts are eligible to sign up for Mobile Pay, but the bank believes the feature will be of particular value to its Business Evolve Core customers.
According to Mkhize, Absa onboarded around 7,000 customers during the app’s pilot phase.
Several thousand transactions have already been processed using the app, with an average value of R110 per transaction.
One of the companies that has praised the app is Mula Mobile, a platform that offers small businesses the opportunity to earn commissions by reselling airtime, stream, games, starter packs and coupons.
General manager Riaan Peens said the app was a no-brainer considering Mula Mobile’s focus on the low-income and informal market.
“As a result, we are able to help thousands of small businesses accept card payments and grow. A method that was previously out of reach is now a reality for our customers,” said Peens.
Absa said the app has been certified by Mastercard and Visa for functional, security and branding requirements.
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