Physical retail is as important as ever, which means that in-person payments continue to play a pivotal role in South Africa’s retail landscape.

In light of this, continued investment has been directed toward in-person payment innovation, a trend that is expected to persist well into the foreseeable future.

In-person payments refer to payments that occur in a store, where the merchant and the customer are both physically present. Unlike online payments that happen through a digital interface, in-person payments typically involve hardware such as mobile point of sale devices.

These devices allow customers to tap, swipe or insert their cards, or they enable contactless or mobile wallet payments.

A closer look at where the sector is going

2024 has seen a marked move towards a true omnichannel experience, where in-person and online payments are integrated.

This convergence of in-person and digital payments, facilitated by innovative mobile point-of-sale solutions, represents a key evolution in the broader payments landscape.

This is a trend that Ecentric has prioritised because there is definite demand from merchants who want to offer experiences that seamlessly blend online and offline payment capabilities.

Financial inclusion is an important theme in the payments industry, where innovative partnerships give merchants and customers more opportunities to transact.

To this end, Ecentric partnered with Flash Group to integrate 1Voucher into its payment ecosystem, effectively opening doors for cash customers who’ve historically been excluded from digital payments.

1Voucher is a prepaid payment voucher that converts cash into digital currency. Expect to see far more innovation as merchants seek to tap into the emerging market’s massive potential.

However, innovation around financial inclusion extends beyond just in-store payment solutions, with use cases limited only by imagination.

In an effort to formalise and digitise the minibus taxi industry, the Wealth On Wheels (WOW) initiative, led by the Eastern Cape Transport Tertiary Cooperative Limited in partnership with Ecentric and FORUS Digital, leverages innovative technologies such as digital cash payments and distributed ledger technology to help minibus owners enhance operations and maximise their revenue, while creating a safer and more secure environment for the travelling public.

Cryptocurrency, and being able to accept cryptocurrency payments, is certainly also a hot topic. It is definitely gaining some traction in the market but it is not yet a major driver in South Africa.

Payment service providers with an eye on the future are no doubt building partnerships to enable cryptocurrency payments.

While there isn’t massive demand yet from merchants, there is a very vocal customer base demanding it, but this segment is still relatively small.

Regulation has had an impact here. Every crypto exchange or crypto payment enabler – anything to do with crypto – now needs a license. Choosing the right partners in this space will be crucial.

What was the preserve of the largest merchants before, loyalty and  rewards programmes are definitely on the upswing in the mid-market retail space.

Looking at the economic benefits around customer attraction and retention, mid-market players have recognised that they are big enough to introduce a loyalty and rewards programme.

This demand will continue to grow as more retailers seek to build loyalty in an increasingly competitive environment. Facilitating the acceptance of these programs as tender for payments, is a key component of the payments service provider offering.

It is clear that there is a definite surge in innovation and alternative payment methods. One of the consequences of this is an increased need to be on top of security – fraud detection and other security measures need to keep pace with innovation.

Comprehensive Approaches to Fraud Detection and Prevention in Contemporary Organizations

A good way to see it is that each new payment method provides a new door and these new doors need to be secured with increased diligence.

This underscores the need for payment providers such as Ecentric to stay well-ahead of the curve on security and compliance in order to build trust and confidence in the rapidly evolving payments landscape.

Together, they will focus on expanding access to financial services, particularly through the integration of 1Voucher—a prepaid payment voucher that converts cash into digital currency.

This partnership aims to create greater opportunities for both merchants and consumers, driving financial inclusion in South Africa, by making it easier for cash-based customers to engage in the modern economy.

Speaking about the partnership, Ruan Geyser, general manager at 1Voucher, highlighted the significance of this collaboration:

“We’ve always aimed to make people’s lives easier through technology, and this partnership with Ecentric allows us to extend that vision even further.

Ecentric’s integration with several of South Africa’s largest retail partners positions our partnership to provide valuable access to these markets.

By integrating 1Voucher into Ecentric’s payment ecosystem, we’re opening doors for cash customers who’ve historically been excluded from digital payments.”

With over two decades of experience in South Africa’s informal retail market, Flash Group has built a network that serves more than 25 million cash-based consumers.

Driven by a vision for a more inclusive and connected economy, the company expands opportunities for businesses and cash-based customers by providing innovative payment solutions and services.

This collaboration with Ecentric is another step toward expanding their reach and offering even more value to merchants and consumers alike.

Together, the aim is to work to meet the changing needs of customers, and ultimately drive product and service access to everyone, everywhere.

Inge Oosthuizen, Product Owner at Ecentric added:

“Partnering with Flash Group aligns with our mission to deliver innovative, secure, and accessible payment solutions, meeting consumers where they are at. By offering 1Voucher as a payment mechanism, we’re empowering consumers who prefer to use cash while providing merchants with access to an untapped customer base.”

The technical integration is designed to be straightforward, opening up new customer segments without requiring significant changes to existing point-of-sale infrastructure.

The user experience is created to allow individuals to digitise their cash through purchasing a 1Voucher at any retailer within the 1Voucher network.

Subsequently, they can use their 1Voucher 16-digit PIN to complete in-store transactions, without the need for a bank account or credit/debit card.

When using 1Voucher as a payment method in-store, consumers benefit from enhanced security, as there’s no need to carry cash. Instead, they can rely on their 1Voucher slip, which holds the equivalent value.

Additionally, customers can effortlessly send a 1Voucher to loved ones at no cost by sharing the 16-digit PIN via SMS, WhatsApp, email, or the 1ForYou app, eliminating the transaction fees often associated with cash transfers.

Ecentric will also be enabling its merchants to accept 1Voucher as tender online in the future.

With Ecentric already processing 20% of South Africa’s card transactions and serving as a trusted payments partner to 65% of the JSE listed retailers, this collaboration represents a broader movement towards bridging the gap between cash and digital payments in South Africa, offering secure, convenient, and inclusive solutions for all.

For merchants, integrating 1Voucher as a payment option means reaching new customers who were previously reliant on cash-based transactions and also provides consumers with a safe, cash-free way to make in-store purchases.

As the collaboration unfolds, both companies emphasise that this is just the beginning of their efforts to innovate in the payments space.

They plan to continue exploring ways to make transactions more accessible and convenient for all South Africans.