Shoppers can now pay in-store at iKhokha retailers by smartphone

4 Mar 2016

Shoppers can now use MasterPass, the digital commerce platform from MasterCard, to pay for in-store or face-to-face purchases at over 2,000 iKhokha retailers and service providers in South Africa using their smartphones or tablets. This follows a collaboration between MasterCard and mobile commerce provider, iKhokha, under which MasterPass' digital checkout services are integrated into iKhokha's mobile payment application used by a wide range of small, medium and mobile enterprises, including hair and beauty salons, tourism businesses, health care practitioners, and professionals like lawyers.

Ruth Mafupa accepts payments on the iKhokha device.

“MasterPass is a major step forward in the evolution of payments. As the way we shop changes, the way we tap, click and make a payment needs to evolve to best fit our needs and lifestyles wherever we are and from whichever connected device we choose," said Ann Cairns, president for international markets, MasterCard.

"Our association with iKhokha extends MasterPass' acceptance beyond online stores into the physical retail world, enabling South Africans to make fast, seamless and secure digital payments online, in-app and now in-store too using any connected device."

Since its launch in South Africa in July 2014, MasterPass has grown its acceptance network, with consumers able to pay using the digital wallet at more than 370 South African merchants including Takealot.com, Flysaa.com (South African Airways), Le Creuset, Flymango.com (Mango Airlines) and www.netflorist.co.za as well as over 250,000 merchants internationally.

“This positive uptake by merchants and consumers is indicative that digital payments are growing in popularity,” said Cairns. “And, today, we are excited to offer MasterPass users even more places to pay digitally at iKhokha retailers and service providers.”

Scan the unique QR code

When shoppers choose to pay iKhokha retailers using MasterPass, they simply open the MasterPass app on their mobile device, and scan the unique QR code that is generated on the iKhokha retailer’s smart device. After shoppers enter their bank PIN number or 3DSecure code and CVV/CVC number on their own device, the transaction is complete.

Unlike other similar solutions, each MasterPass transaction is classified as an authenticated mobile transaction by South African banks, ensuring that consumers enjoy the highest protection from fraudsters. Anyone can use the Standard Bank and Nedbank MasterPass apps – even non-Standard Bank and non-Nedbank cardholders. MasterPass also accepts selected PIN-based debit cards such as Maestro, enabling millions of South Africans to make omni-channel payments.

For merchants, MasterPass provides a secure, quick-and-easy way to checkout their customers, which can lead to increased spending and more frequent purchases. It also opens new business opportunities and enables merchants potentially to increase their sales to consumers in 28 other countries where MasterPass is available, including Australia, Canada, China, the UK, and the US.

“What excites us is that through our collaboration with MasterCard and MasterPass we are helping our merchants walk the journey from cash to card to digital acceptance. If a customer wants to pay with it, our iKhokha merchants need to be able to accept it, and we need to make that process frictionless for both parties. Providing small and medium enterprises with cash recording capabilities, as well as digital and physical card payment acceptance, in one mobile app is to our knowledge an African first,” said Matt Putman, MD of iKhokha.

The MasterPass app and iKhokha merchant app are both available from the iTunes and Google Play stores.