Martin Endjala
In the digital transformative world, innovative ways of doing business have become a prerequisite for many Small and Medium Enterprises (SMEs) to navigate the demands of high-tech payment and cash withdrawal systems.
Papa G, who owns Papa G’s Chicken in Grysblock, Windhoek, narrated his experience with a Portable Point of Sale (POS) commonly known as a swiping machine, describing it as convenient for his customers.
He told the Windhoek Observer this week that some customers do not walk around carrying money, and the convenience of him having a swiping machine has been a game changer.
“Trust me if you do not have a swiping machine at your establishment as a SME, customers who have no cash will swipe to the next establishment. Causing you to lose money,” he explained.
He explained that swiping machines help to do away with storing huge chunks of money, which can attract theft, robbery and other temptations that come with storing money in the safe.
He said that in today’s world, many people are now swiping cards to purchase various goods and services; hence, all SMEs should move with the times.
Papa G, who started his business nine years ago, said the standard of having a swiping machine required one to pay a service fee of about N$300 per day as an SME, and this number has now increased depending on the maximum limit a swiping machine is allowed to accept.
He explained that the limit has since been raised from N$1 000 to N$3 000 in some SMEs while those with advanced establishments now exceed the N$10 000 limit.
Sadly, he no longer uses swiping machines, as one was lost, and he failed to take the other back to be upgraded during the SIM card registrations.
“But what I have picked up is that many FNB clients prefer to make payments via pay-to-cell compared to E-wallet. Because E-wallet charges are just a lot. Hence, swiping machines are high-value revenue generation tools for an SME,” he narrated.
Meanwhile, First National Bank (FNB) marketing and communication consultant Petelina Frans said its alternative channels are CashPlus, Cash@Till, and eWallet@Till.
“These channels were implemented to allow customers to withdraw and deposit cash without needing an ATM or going to the branch,” she said.
Various SMEs across the country are offering the said services.
She explained that CashPlus is a way for both FNB and non-FNB customers to deposit and withdraw cash, withdraw money from an eWallet, or buy prepaid airtime and electricity at an FNB CashPlus agent using only their cellphones.
To use this service, Frans explained that customers must register for cellphone banking or download the FNB app on their devices.
Furthermore, Cash@Till allows customers to use their FNB debit card to withdraw cash or make a purchase at a point of sale and speed points at selected merchants.
E-Wallet@Till is similar to Cash@Till in that it enables customers to withdraw, purchase, or do both from their eWallet balance.
But for an SME to do so, it must meet all requirements.
Bank Windhoek’s executive officer of marketing and corporate communication services, Jacquiline Pack, explained that SMEs who are in good standing or comply with rules and regulations sign up for the service to obtain a Bank Windhoek swipe machine and use it as a payment instrument for goods and services in their business.
“The service that allows you to get cashback when you swipe is only available at businesses that have integrated point-of-sale solutions,” she said.
She further clarified that easy wallet withdrawals at the point of sale are not currently available in Namibia; customers will still need to withdraw cash at respective ATMs countrywide, except for cash back in retail shops that offer such.
At the moment, Chekers and Shoprite do not offer cash back for Bank Windhoek; compared to FNB, whose services are offered in almost all SMEs, retail shops, and service stations, only Pick n’ Pay, Woermans, and Choppies do.
Economist Josef Sheehama stated that as a banker, he can attest that a swipe machine is more affordable than a cash deposit fee.
“It is more cost-effective for SMEs to have a swipe machine than to take cash,” he said.
He explained that the owner and the bank have an agreement that stipulates a standing charge fee that is applied to the face value of the deposited amount.
Making the switch to swipe machines, he said, drastically lowers the expenses related to counting, storing, protecting, and transporting actual currency.
He added that processes are streamlined by this change, which results in significant cost savings.
He, however, said using cash requires more time and carries a higher risk of theft or damage.
