In a significant move to enhance online payment accessibility in South Africa, Mukuru, one of the leading money transfer providers in Africa, has joined forces with the South African online payments gateway, PayFast.
The collaboration introduces a novel payment service, integrated into PayFast, enabling merchants to accept cash payments for online purchases. This development is particularly beneficial for the underserved market that either relies on cash earnings or lacks access to digital payment tools like credit cards.
When choosing Mukuru as a payment option during the online checkout process, consumers receive a unique code. Within 36 hours, they can visit any Mukuru pay point nationwide to make their cash payment. Once the payment is confirmed, PayFast notifies the merchant, facilitating the seamless processing of the online order.
According to Oliver O’Brien, Mukuru’s Group Executive Head of Strategy and Business Development, this solution acts as a bridge between cash and digital for consumers. With a base of trusting and familiar customers, Mukuru facilitates a smooth transition to the digital economy.
This partnership opens the door for millions of South Africans to access a diverse range of online stores, spanning entertainment, fashion, groceries, and appliances. Merchants, in turn, can tap into this substantial and underserved market, unlocking new growth opportunities.
Crucially, the collaboration with PayFast offers a safer and more reliable alternative to cash on delivery, a method fraught with challenges, particularly in informal communities.
Mukuru, established in the mid-2000s, initially focused on enabling customers in the diaspora to send fuel and grocery vouchers via SMS. Over time, it expanded its services to include money remittances, now serving over 13 million customers across Africa, Asia, and Europe.
With a network of cash-to-digital pay-in points in both urban and rural areas of South Africa, Mukuru caters to diverse customer preferences, from those using cash online to individuals employed in the informal sector who primarily transact in cash.
On the other hand, Cape Town-based PayFast specialises in providing payments processing services for the e-commerce market throughout the African continent, facilitating seamless money transfers between online buyers and sellers.
Recognising that millions of individuals still prefer cash transactions, the alliance between PayFast and Mukuru aims to bridge the digital divide by offering a secure and convenient avenue for cash users to participate in the digital economy.
