Mobile point-of-sale solutions (mPOS) solutions are becoming more widely used in South African retail operations, with a noted trend of merchants not only adding these solutions to businesses but even replacing traditional POS systems with mobile terminals.

Local fintech company Hello Pay says that its new Android mPOS device is well positioned to help merchants, from small traders to small and medium-sized enterprises (SMEs), to adopt this new technology.

“The misconception prevails that trading in cash is cheaper and more convenient, but that’s not the case,” says Hello Pay MD Zunaid Miya, highlighting a 2020 survey in which 87% of retailers agreed that mobile payments provide a seamless and frictionless checkout experience that can improve cash flow. And 89% of respondents said that the biggest benefit to using mPOS is its cost effectiveness.

According to the Payments Association of South Africa, businesses often do not account for all the costs associated with accepting cash payments, including the risk of theft, leakages, infrastructure costs for safes and tellers, and the costs associated with depositing cash. The report also says that cash costs the average South African consumer 2.4% of gross income, rising to 4.1% for lower-income South Africans.

“Hello Pay champions a commitment to real and meaningful financial inclusion for SMEs by offering services that are low cost, easily accessible and simple to use. Digital solutions like mPOS systems have the potential to level the playing field. Small businesses can control costs and manage cash flow more effectively, and benefit from a host of other services they traditionally wouldn’t have access to,” says Miya.

Miya says the new device will have more capabilities than the company’s other offerings, with additional digital services. “The 4G-enabled device with its dual SIM will allow merchants to sell digital services, airtime, and electricity, as well as providing Hello Paisa’s financial services products including remittances and insurance. They can also purchase business services through our platform and submit loan requests on the device – to name but a few functions.”

The Android terminal’s functionalities include:

• High security: fully guaranteed transaction security with complete payment certifications
• Several payment functionalities, including a magnetic strip, Europay, MasterCard, and Visa, or EMV, chip and pin, contactless or near-field communication and Quick Response, or QR, code
• Excellent performance: Qaulcomm quad-core 1.3 GHz processor, 5.5” display, 5 MP camera
• Printing: supports 1D/2D barcode and receipt printing
• Networking: 4G/3G/2G, Bluetooth and Wi-Fi capabilities

“Such intelligent digital solutions, once only accessible to large enterprises, are now within reach for entrepreneurs and SMEs. The convenience, time savings and cash flow advantages will allow entrepreneurs to focus on what truly matters – growing their business,” says Miya.