While the eventual growth of e-commerce was inevitable, few could have predicted the explosive surge e-commerce has made in the last two years.
It’s not only big brands making moves online. As more shoppers turn their attention to the digital marketplace, small businesses with tech-savvy owners at the helm are cashing in on the e-commerce boom.
Unfortunately, it’s not an easy road for small businesses looking to make their first foray into digital commerce as few online payment methods cater to small businesses.
Many providers charge exorbitant fees and are geared towards larger operations. The resulting shrinking profit margins has traditionally left small business owners asking, “What’s the point?”
For example, one of South Africa’s largest online payment gateways charges 3.5% (excl. VAT) per transaction. They then charge a further R8.70 per payout when a merchant transfers money to their bank account. Again, excluding VAT.
To a small business owner navigating the daily uncertainties of running a businesses, these costs may not be worth it. As a result, the small business owner misses out on a massive consumer market which is predicted to grow to R225 billion by 2025.
But not all financial services brands are leaving these businesses to fend for themselves. After a rapid 66% growth in the South African e-commerce market in 2020, iKhokha set about creating an online payment solution to help small businesses thrive online.
The result is iK Pay Online – a planned stable of online payment solutions built with small businesses in mind.
The first of the iK Pay Online products – the iKhokha Payment Gateway – recently launched out of beta and has already processed a quarter of a million Rand in merchant transactions.
WooCommerce and WordPress users now have free access to iKhokha’s first WordPress payment gateway. There are no monthly rental fees, no contracts and no setup costs.
Even better news for small businesses is that the iKhokha has set their transaction rates at 2.85% (excl. VAT) – the lowest starting rate in Africa – with a nominal settlement fee of R2.50 per payout.
The launch of the iKhokha Payment Gateway has come as a relief to small businesses impacted by a series of setbacks due to the pandemic.
“I already have a card machine, but usage pretty much stopped during the pandemic,” said an iKhokha merchant on social media.
“The e-commerce industry got a major boost, so I’m very happy to be continuing my relationship with the iKhokha. It’s easily recognised by South African buyers, so that’s an amazing trust factor that boosts customer confidence.”
The development of the iKhokha Payment Gateway – which was built in-house by the iKhokha e-commerce team – further displays their commitment to their merchants and brand story, Together We Rise.
iKhokha plans to add further products to the iK Pay Online stable over the next five years to give small businesses a fighting chance in a rapidly developing e-commerce space.
For more information on iKhokha’s Payment Gateway please visit www.ikhokha.com/pay-online
Source: Independent Online https://www.iol.co.za/business-report/entrepreneurs/new-opportunity-arises-for-digital-entrepreneurs-and-e-commerce-businesses-0aecf43e-9d23-4c23-9c3c-799c8ec333d4