Mastercard (NYSE: MA) recently joined forces with retail group Massmart in order to connect Small, Medium and Micro-Enterprises (SMMEs) to cost-effective e-commerce solutions, “enabling a safe transition away from cash.”
During the latter half of last year- following the period of social unrest – SMMEs were able to acquire an electronic Point of Sale (POS) or Mobile POS device at a discounted retail price from Massmart retail outlet nationwide, including Game, Makro, and Builders Warehouse stores. Over the campaign, Massmart saw a considerable increase in the sale of its POS devices, with small businesses reporting a significant increase in sales.
Varsha Dayaram, SVP for Massmart Financial Services, stated:
“The Covid-related lockdown in 2021 and subsequent unrest experienced in July last year had a devastating effect on small businesses. Informal traders suffered enumerable losses during this time, which was exacerbated by the destruction of their POS infrastructure, thus depriving them of offering card payments as tender type at a time when card acceptance in informal communities became more pervasive as a secure and convenient alternative to cash. As such, Massmart was delighted to partner with Mastercard to enable small traders to purchase POS devices at discounted prices in an endeavour to empower them to not only recover, but to thrive.”
The collaboration supports Mastercard’s commitment to supporting SMMEs as they recover from the effects of the pandemic and the social unrest, where businesses resorted to accepting cash-only payments after losing their card payment terminals.
The demand for faster, more convenient, safe, and cleaner ways to pay has driven the transition from cash to digital and contactless payments, “with 64% of South Africans saying that they have reduced or completely eliminated their use of cash since the pandemic began.”
Amnah Ajmal, EVP, Market Development, Mastercard MENA, remarked:
“We recognize the overwhelming pressure that small business owners are currently facing and are committed to help them recover and come out stronger on the side. Through our partnership with Massmart, we support financial inclusion – especially among informal merchants – and help these businesses deliver best-in-class consumer experiences using affordable digital payment solutions. Strategic partnerships like this are crucial to lowering technological and cost barriers in order to connect more small businesses to the digital economy, which aids inclusive, economic growth and shows our commitment to drive a sustainable society.”
In South Africa, Mastercard has “accelerated collaborations to advance affordable digital payments acceptance solutions such QR and Tap on Phone – a contactless acceptance solution that turns any NFC-enabled Android device into a physical point of sale.”
