Online retail accounts for only 1 % of the retail sector revenue in SA. In fact, as per World Wide Worx, online retail sales are expected to be doubled from 2016-2020.
The current growth rate stands at above 20% since 2000. From an economic perspective, this is great. It is an opportunity for the SMEs to expand their reach by going online.
How do merchants in SA accept online payments?
Card Payments (selected debit cards/credit cards)
Challenges in accepting online/EFT payments (SMEs)
-Setting up an online merchant account ==> administrative delays
-Transaction fees to the payment service provider
-Complying with standards such as PCI DSS (for credit cards)
-If using payment aggregator services ==> high transaction cost
-Proof of payment required after the transaction
-Payment clearance delays ==> 2-5 business days
-Paypal account setup can be daunting for newbie shoppers
-SA’s banked population ==> only 20% have credit cards
-Additionally, not all debit cards support online transactions
Solution: Instant EFT Services
It is essential for business owners to reach customers in a manner which is convenient and cost effective. Instant EFT solutions can take care of these tedious problems as well as the user experience of their online stores.
What is Instant EFT?
It is an electronic funds transfer (EFT), a transfer from a shopper’s bank account to the EFT service providers bank account, that instantly gets confirmed. The funds are paid to the seller’s bank account upon request of Payout.
Benefits of Instant EFT
-Immediate payment clearance: no waiting
-No proof of payment required
-Compatible with all browsers and platforms
-Lower transaction fee (less than 2 to 4 percent of transaction fee)
-Easy to setup (web developers can make the merchant go online in no time)
-Hassle free instant checkout
-Instant EFTs have higher trust among consumers
-Instant feedback in case of insufficient funds
Instant EFT enables a large part of the population to trade and shop online. At the buyer’s end, all it requires is a regular internet banking username and password. To ignore instant EFT means, losing out on a large share of local shoppers and a low-cost payment mechanism.