Yoco reaches 50 000 merchants milestone
JOHANNESBURG – Yoco, a South African mobile points of sale (mPOS) provider, on Thursday said it had reached a milestone of 50 000 nationwide merchants since it was launched in 2015, with plans to reach the mass market.
The company yesterday also launched its new terminal, called the Yoco Go, targeting the ”small guy”.
“The majority of the 50 000 small businesses were accepting payments for the first time,” said Katlego Maphai, the chief executive of Yoco.
Yoco is disrupting traditional payment models by removing red tape and lowering activation costs aimed at servicing small under serviced companies.
Yoco said its typical customer has a turnover of between R10 000 to R200 000 a month. The company said 20 percent of sales from traditional-offering based customers and the other 80 percent were new to mPOS.
Yoco said it was currently processing R6 billion in annualised transaction volume. In 2015 it was at R0.1bn, 2016 R05.bn, 2017 R1.5bn and in 2018 R3bn, showing significant growth.
Maphai said: “Yoco is building an open e-commerce system for all, not a few, via partnership. If something benefits our customers, we want it on our platform.”
Yoco wants to move South Africa away from cash payments, and their research had shown people spend more on card than cash transactions. Having mPOS could hike a small business’s sales by up to 40 percent.
Yoco said, despite banking stereotypes, most South Africans had high banking penetration of up to 85 percent of people with cards.
Yoco said they plan to enter the mass market and are “looking to be a one-stop shop for the needs of entrepreneurs”.
On its platform Yoco has developed a software suite and services to allow merchants to manage their business and activities, such as stock management, invoicing and even cash advances via Yoco Capital.
Yoco Capital offers small businesses access to capital. The repayment method is as follows: every time a customer swipes their card a fixed percentage of that amount goes towards paying back the advance.
Unlike traditional point of payment technology, which rent out mPOS machines for roughly R350 to R700 a month are negotiated on a one-to-one basis on a 24-month contact, Yoco sells the terminal in a once off price, or people can purchase the Yoco Go by instalments, no monthly rental and customers are not locked into a contract.
Yoco Go retails for R799, with transaction fees starting at 2.95 percent.