Article provided by Nedbank
In a groundbreaking move to enhance the digital capabilities of traders, Nedbank provided state-of-the-art Point of Sale (POS) devices to selected vendors at the Soweto Kota Festival with the aim of fuelling sales, and enabling seamless business operations.
This initiative was part of Nedbank’s broader strategy to support small and medium-sized enterprises (SMEs), whether sole props or formally registered, ensuring they have the tools and resources needed to thrive in a digital economy. The initiative reflects the bank’s ongoing efforts to foster financial inclusion and support growth in this important sector.
‘Considering that 1% of informal retailers in South Africa accept electronic payments, and 56% do not have access to a bank account, equating to massive volumes of cash usage, we were thrilled that the small businesses that traded at the festival were able to maximise their sales and optimise on revenue generation due to their broader range of payments they could accept,’ says Monique Chinnah, Senior Manager of Segment Design and Development at Nedbank. ‘By equipping vendors with POS devices, we not only enabled them to adapt to digital payment methods but also reinforced our dedication to empower local businesses and drive economic development.’
Chinnah elaborated that the benefits of POS machines are far reaching as they ‘allow traders to accept card payments from any of the associations, expanding their customer base beyond cash transactions thereby increasing sales. They also reduce the risks associated with handling large amounts of cash and increase transaction security. With a quick digital onboarding process, and access to clear transaction records via the Money app, traders are able to manage their finances more effectively, facilitating the formalisation of the business and enabling the tracking of their cashflow over time.’
Additionally, all POS devices were linked to a Nedbank business account, separating their personal and business spending – and, importantly, allowing immediate settlement of their POS funds into their bank account. Nedbank offered new merchants 100% cash back off their device fee if they met a minimum usage threshold.
This intervention was not intended to be a once-off intervention based on an event, and therefore, all Kota Festival vendors were also invited to attend the SimplyBiz Powershot Café, hosted by Nedbank’s free business development platform to equip them to drive sustainable business practices and recurring sales.
For information on the event visit www.kotafestival.co.za.