Money is important, and as a business, you need it. You need it to buy stock, grow your business and pay your employees. However, as much as cash is still king, the emergence of digital payments has made paying easier and safer for everyone. This new tech-based financial industry is called fintech.
Fintech is the integration of technology into offerings by financial services organisations. The technology is used to improve their use and delivery of services to consumers. In South Africa, the fintech market is expected to be worth around $65 billion by the year 2030.
With a growing fintech industry, comes innovative fintech products and services. An example of this is point-of-sale (POS) systems. POS systems are a combination of hardware, software and payment services that businesses use to make sales.
The POS race in South Africa is led by Yoco and iKhokha. These two companies have taken POS technology and made it more accessible to everyone, especially entrepreneurs and small to medium-sized enterprises (SMEs).
In this article, we look at Yoco and iKhokha and see how they’ve taken their technology to the next level.
What is Yoco?
Local fintech company Yoco has been running since 2015. The company offers a pay-per-use transaction model, along with its POS machines.
The company focuses on providing affordable payment systems for small businesses. To demonstrate this, Yoco does not charge a monthly rental fee for its card machines. Additionally, the company delivers its card machines for free in South Africa.
What is iKhokha?
South African tech company iKhokha has been in operation since 2012. The company offers POS and stock management systems. iKhokha’s focus on small businesses has led to the development of a range of card machines and online tools to help small businesses.
In addition to its POS solutions and online tools, iKhokha machines allow for vending prepaid services. This allows business owners to not only sell their products but also offer their customers a chance to buy airtime, and electricity and settle bills like a DSTV account.
These two companies are working to help small businesses easily transition into digital payments. To better understand their services and solutions, let’s look at the main features of each fintech organisation, allowing you answer the question: Yoco or iKhokha?
Main Features of Yoco and iKhokha
Card Machines: Yoco vs iKhokha
Both Yoco and iKhokha have extensive card machine offerings. The Yoco card machine offerings are:
Yoco Card Machines:
Yoco Neo Touch – A card machine with an intuitive touch screen. The machine is compatible with Yoco POS. Costs R 999 once-off + R 49 monthly connectivity fee.
Yoco Khumo – This Yoco card machine comes with a Yoco POS built-in. Costs R 1 299 once-off + R 49 monthly connectivity fee.
Yoco Khumo Print – Includes all the features of Khumo plus a built-in receipt printer. Costs R 1 999 + R 49 monthly connectivity fee (includes free charging stand).
Yoco Go Starter – An easy-to-use card basic card machine. Costs R 749 once off with no monthly connectivity fees.
iKhokha Card Machines:
iKhokha Flyer – A card machine which also prints receipts. Costs R 1 499 once-off with no monthly rental fee. If you use an unlimited data sim, it will cost you R 75 per month for connectivity.
iKhokha Flyer Lite – This machine is best for those on-the-go transactions and payments. The machine costs R 999 once-off with a R 75 monthly sim fee for/with unlimited data.
iKhokha Tap on Phone – This option turns your Android phone into a card machine. Using NFC technology, your customers can tap on your phone when paying. This option is free in the iKhokha app. No sim fees are included.
Fees and Rates: Yoco vs iKhokha
Both companies have different costs for transactions. Transaction costs are fees that are charged with every transaction performed.
Yoco Transaction Fees:
R 0 – R 100 000 monthly turnover – 2,7% charge on local bank cards, 2,95% charge on international bank cards and 3,4% charge on AMEX.
R 100 000 – R 200 000 – 2,5% charge on local bank cards, 2,6% on international bank cards and 3% charge on AMEX.
+R 200 000 – All charges are calculated by Yoco.
Note: AMEX is an American Express card.
iKhokha Transaction Fees:
R 0 – R 40 000 monthly transactions – 2,75% charge for in-person local cards.
R 40 000 – R 60 000 monthly transactions – 2,65% charge for in-person local cards.
R 60 000 – R 80 000 monthly transactions – 2,55% charge for in-person local cards.
R 80 000 – R 100 000 monthly transactions – 2,5% charge for in-person local cards.
+R100 000 monthly transactions – custom charges for in-person local cards.
iKhokha online payments – 2,85% charge for local cards and 2% for instant EFT transactions.
iKhokha international cards – 3,25% charge for international cards.
Note: iKhokha charges a daily settlement fee when funds are transferred into your account. The charge is R 2,50 per transaction no matter the amount.
Tools and Solutions: Yoco vs iKhokha
To further help small businesses, Yoco and iKhokha have a range of tools and solutions to help you manage your payments and your business.
Yoco Tools and Solutions
Yoco App – The Yoco app lets you see your sales history, access business and account data, make sales, and view transaction history. Additionally, you can track your business’ performance, add discounts for customers, send digital receipts (e-mail or SMS), and manage your funds and chargebacks.
Yoco Link – If you don’t have a website for your business, Yoco Link allows you to get paid online. You simply send a link to your customer via chat, e-mail or social media.
Yoco Gateway – This feature allows you to accept payments via your website. It’s typically used for e-commerce platforms such as WooCommerce, Wix and Shopstar.
Note: The Yoco Business Portal is now the Yoco Web App.
iKhokha Tools and Solutions
iKhokha App – With the iKhokha app, you can see your transactions, sales, and settlement history easily.
You can also sell prepaid vouchers, access payment links, create invoices and accept instant EFTs, send digital receipts, and check the status of your card transactions.
iKhokha Dashboard – The dashboard allows you to track your business growth, receive a detailed report on your business, view your sales and settlements and keep track of all your business activities.
iKhokha Hub – A dedicated hub where you can get help with your iKhokha products or services and get information on the latest updates and news from iKhokha.
Note: Both Yoco and iKhokha have referral programmes. By referring someone to the platforms you get R 500. You will only receive your R 500 once your referral has been traded by R 1 000.
These tools and solutions are great but what all small businesses need more is access to funding. Luckily, both Yoco and iKhokha have funding options on their platforms.
Funding: Yoco vs iKhokha
Yoco Cash Advance – Yoco has a cash advance option available on its platform. To qualify for the funding, you only need to be a Yoco merchant for three months. On the Yoco Portal, you will get a notification on when you are eligible for Yoco Capital.
Application is done on the platform and approval can be done within seconds. Your cash will be deposited to you within 1 business day. Yoco takes a small percentage of your sales to pay off the cash advance.
Note: If you need a top-up, you can apply for one and the difference between your existing repayment and the top-up is paid to you within one business day.
iKhokha Cash Advance – iKhokha’s cash advance is up to R 1 million. Your funding offer is based on how much you have traded with iKhokha. Like Yoco, the repayment is done as a small percentage of your daily card sales.
To qualify you need to be an iKhokha merchant for three consecutive months and make more than R 2 500 in sales per month. If your application is accepted, your cash advance is paid out within 24 hours.
Note: iKhokha does not perform credit checks for funding offers under R 500 000.
Yoco and iKhokha have changed payments for small businesses. From their innovative apps to quick funding applications, the platforms are ideal for SMEs.
With easy-to-use payment technology from Yoco and iKhokha, you have the chance to elevate your business by using their technology. This will help you manage your sales easily while making payments seamless for your customers.
For information on online payment platforms, take a look at the solutions that are available to you.
