NAIROBI, Kenya, Nov 30 – Online payment platform SasaPay has introduced a new solution that will see business owners refund fees applied to transactions.
It will eradicate cash collection fees for merchants as well as allow small and medium businesses (SMEs) to earn daily prorated cashback at the rate of 1.2 percent per year for using the SasaPay platform.
“Currently, the norm is that businesses are charged to transact via mobile money. With the SasaPay cash-back model, they will be “paid to get paid” instead,” said Daniel Njoroge, Deputy CEO of SasaPay.
“For instance, a business collecting Sh10 million through traditional tills per month incurs transaction fees totaling Sh50,000,” Njoroge added.
“SasaPay not only eliminates this fee but also helps the business generate earnings from its collections. They will further have access to working capital from Sasapay partners, enabling them to grow their businesses.”
The model also incorporates interoperability, enabling merchants to make and receive payments from all channels, including SasaPay, bank accounts, M-Pesa, Airtel Money, and more.
Additionally, Sasapay users and consumers will enjoy fee-free payments within its ecosystem.
Those making payments through other channels will automatically have a Sasapay account created for them, and the fee they were charged will be refunded as a ‘welcome token’ to the platform.
This offers relief for merchants who have been compelled to abandon their traditional tills in order to reduce the overall cost of conducting business.
According to estimates from the Kenya National Bureau of Statistics (KNBS), there are over 7 million SMEs in Kenya, providing employment to more than 14.4 million Kenyans across various sectors of the economy.
Data from the Central Bank of Kenya, however, reveal that a staggering 46.3 percent of SMEs face financial challenges and cease operations within their first year, with the high cost of doing business leading.
