Banking apps to turn your smartphone into POS for your small business

Using a smartphone to make and accept payments is not a new concept in South Africa. An app from Nedbank – known as Pocket POS –  has been around since 2020, and Absa’s Mobile Pay was introduced early last year.

Standard Bank will soon be introducing its SoftPOS (PIN on Glass) solution in the near future.

These apps provide the technology for a very simple but nifty idea. Basically, Nedbank, Standard Bank and Absa have come up with a way for users to use their smartphone as a Point of Sales device. This is where customers tap their bank cards on the seller’s phone and the seller manages the transactions on the app.

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It is a very useful tool for up-and-coming entrepreneurs who take their products and services to sell in far-off locations and on the road or for those who just want to venture into a once-off entrepreneurial venture – like selling snacks and beverages at the school’s talent show or printed merch outside a music concert.

These entrepreneurs no longer need to invest in cumbersome gadgets to conclude a sale. They just need to sign onto the app with a valid account and tap the customer’s bank card when prompted to do so.

Cost-factor

So what is the costing on something like this though? Well, there’s no monthly cost to it but Absa does take 2.75% on a commission fee for every transaction. Nedbank takes 2.5% if the customer is paying with a Nedbank card and 2.75% for card payments from other banks. Standard Bank has yet to release that information.

Nedbank explained that its app was designed specifically for small-business owners and the ‘occasional trader’. It relies on a phone’s near-field communication capacity and of course the use of the phone network data.

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From inception to now, both apps have been downloaded by a significant number of users, with Absa seeing around 5 000 downloads and Nedbank around 50 000 download, but have received mixed reviews.

Overall ratings

Nedbank’s PocketPOS’s overall rating was 2.2 out of 5 stars on Apple’s app store and 3.3 on Google Play. Absa Mobile Pay – only compatible with Android and available on Googly play store, receive an overall rating of 4.1 out of 5 stars.

Absa Mobile Pay users said that the app was easier enough to use. But they were concerned about safety features.

PocketPOS users bemoaned the software, stating that it was full of issues and problematic when it came to logging in.

For another Gauteng entrepreneur however, namely Lehubedu Mohlabe, the PocketPOS app inspired him to create a roadside hustle that was entirely unique in its execution, as a result of the features of the app.

Take, tap and go

Mohlabe has a business called CoffeeToCar.

Kitted out with a purpose-built vest that helps him carry cups, lids and instant beverage mixes, he sells hot cups of tea and coffee on the curbside near a traffic light in Joburg. He sells to passers-by who are late for work and had to dash out the house without their morning pick-me-up, and can’t exactly make a coffee stop.

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Mohlabe is able to hand his customers a piping hot cup of coffee, as they tap their bank cards to his phone before they drive off again.

“My buyers are limited to less than 5 minutes sometimes to make the transaction. We don’t have time to fumble over cash and change while mixing the right drink, to hand it to them on time for them to secure in their car cup holders before driving off again. So payment via this app works in this instance. It’s just take, tap and go,” he said.