Mastercard has entered into a partnership with Spazapp, a Durban-based technology company, to provide convenient mobile payments to informal traders and convenience stores, which are called spaza shops in South Africa.
Under the partnership, Mastercard will integrate its digital global payment service Masterpass into Spazapp, which connects a community of informal traders directly to big FMCG brands such as Unilever and Tiger Brands.
The Spazapp platform enables traders to order different products at competitive prices and use Masterpass to digitally pay for stock and accept cashless payments with mobile phones.
“The 4,500 micro-businesses who are currently using Spazapp’s buying app can generate significant savings on stock procurement,” the company said in its press release.
Spazapp CEO Tim Strang said: “Our goal is to uplift last mile traders and disadvantaged communities by simplifying the buying process for small, informal traders through competitive pricing and collective bargaining power.
“Masterpass has the scale, efficiency and convenience we need to offer merchants a truly accessible, low-risk and affordable way to accept electronic payments from their customers and pay their suppliers.”
Mastercard Southern Africa division president Mark Elliott added: “Too many informal micro-retailers are stuck, like their customers, in a cash economy that doesn’t work for them.
“By matching up Spazapp’s extensive supplier and distribution network with digital payment and acceptance solutions from Mastercard, we are able to help these shop owners build a better future and serve their customers who are themselves demanding safer, and more convenient ways to pay.”