Cape Town - Small, medium and micro enterprises (SMMEs) have been the fastest adopters of mobile payment solutions, which have become a crucial tool for business growth, especially after the Covid-19 pandemic.
A briefing to the standing committee on finance, economic opportunities and tourism on mobile payment solutions heard that the ease of use, affordability and accessibility of such payments were changing the way these merchants transact, giving them access to vital financial services previously out of their reach.
Committee chairperson Deidré Baartman (DA) said the point of the briefing was for members to learn how mobile payment solutions are making it easier for small businesses to cut red tape.
“Especially for the tourism businesses in Western Cape, this is important as it cuts costs in terms of banking and fees while assisting tourists, particularly in rural and remote areas where there is no signal.”
Snapscan’s chief operating officer Marin Cundall said that despite a difficult year spent overcoming the third wave of Covid-19, 48% of merchants saw an increase in revenue during 2021 compared with 2020.
Yoco spokesperson Matt Brownell said the company’s merchants are the self-employed, who face a multitude of economic and social challenges.
He said consistent cash flow and access to capital are the two challenges most salient for their merchants.
Committee member Nomi Nkondlo (ANC) said she was impressed with how the mobile payment solutions service the local informal economy.
“Better than any political rhetoric, these payment solutions companies have data that can tell us the amount of money that is changing hands on a day-to-day basis and that monetary value can actually be quantified.”