Mastercard has announced that it will be collaborating with South African FinTech startup, Yoco. As part of the collaboration, the two companies will roll out 15,000 mobile Point of Sale (mPOS) devices to small and medium-sized businesses by the end of 2017.
Yoco is a South African Fintech startup that helps small and medium businesses accept card payments.
Yoco card reader.
“Through this partnership, we will empower even more small businesses that previously did not accept card payments, while growing the market and making a contribution to our economy,” said Katlego Maphai, CEO at Yoco.
This initiative will be limited to businesses in South Africa and will also include an education element where business owners will be educated on the benefits of going cashless.
Yoco was launched in 2015 and it has experienced significant growth as it now serves over 14,500 merchants. What is interesting is that, according to Yoco, over 70% of the merchants they serve had never accepted cards before.
“Solutions like Yoco enable these small and medium businesses to respond to their customers’ increasing desire to pay for goods and services with payment cards rather than cash, which is higher risk, without making large upfront investments in infrastructure or facing high transaction costs,” said Mark Elliott, Division President at Mastercard, Southern Africa.
According to Mastercard, small and medium-sized merchants that have never accepted card payments are turning to mPOS solutions to expand their customer base and increase sales.
Yoco recently launched their Yoco Store in Parkhurst, Johannesburg. The store is part of their physical retail distribution strategy where businesses can purchase a card reader and transact the same day.
Earlier in 2017 Yoco raised an undisclosed Series A funding round from Quona Capital and Velocity Capital with the aim of using the funds for international expansion.
Cover Image Credit: Yoco