South Africa’s Ukheshe launches first certification-free mobile payment solution

South Africa's Ukheshe launches first certification-free mobile payment solution

Fintech company Ukheshe Technologies, has launched the very first tap-on-phone payment solution that requires no certifications.

In a statement, the company said, though tap-on-phone payments have been available for a while, up until now this functionality has been costly, with several administration hurdles. 

To solve the challenges, Ukheshe introduced a quick process for merchants and service providers to accept tap-on-phone payments by allowing any near-field communication (NFC)-enabled Android phone to accept tap-on-phone transactions.

The process do not require any certifications and app approvals, and no need to include any third parties or software development toolkits (SDKs) added the statement. 

Paul Selibas, President: Channel Solutions for Ukheshe Technologies, says this will be especially helpful for SMEs, solving their difficulties in accepting card transactions.

“The cost of a terminal is a hurdle to these businesses, not to mention the additional distribution and maintenance concerns. This new technology combats the high costs of app certifications in developing and implementing tap-on-phone solutions.” 

According to an Accenture report, micro-merchants represent around 40 percent of the GDP in emerging markets, but 90 percent of them don’t take digital payments of any kind. Tap-on-phone payments are the most practical way to enable these businesses to accept digital payments – not only for its convenience, but now also its ease of implementation and lower costs. 

Tap-on-phone essentially turns a merchant’s smartphone or tablet into a contactless point-of-sale (POS) terminal that can receive payments from contactless cards or mobile wallets, without requiring any additional hardware. 

When a merchant requires a payment, the merchant’s app would initiate the tap-on-phone functionality. The customer would then tap their card against the merchant’s phone, and the purchase is done. Similarly, if a customer were to make a payment in a consumer facing app, the customer could tap their card on their own device and the payment is complete.    

Tap-on-phone transactions are protected by the same security and encryption technology offered with chip cards throughout the world, and the same secure transaction process as traditional POS transactions. 

Ukheshe’s solution allows any merchant or service provider, from a corner store owner to a taxi driver, to accept a tap-on-phone payment powered by its Eclipse platform. Once the tap-on-phone function is selected, the Eclipse Payment Service App (EPS) will open on top of the merchant app and the payment will be facilitated by Eclipse.   

“Ukheshe is driving down the barriers to entry in payment acceptance for businesses through simpler, more affordable functionality and low-friction sign-up. We are setting the trend; disrupting the traditional POS system. I think there will be many players rushing out to follow suit, because this is a game-changer,” concludes Selibas. 

The company said the planned production release date for the Eclipse Payment Service App is 1 July 2022.