SMEs have long been the lifeblood of South Africa's economy, driving job creation and economic growth. Yet, these businesses often grapple with access to simple financial opportunities.
Fortunately, a strong and steady increase in mobile penetration in South Africa has led to another high-demand, easy-access option for small business owners: prepaid products. The appeal of selling prepaid lies in its accessibility and the opportunity for SMEs to diversify revenue streams.
The market growth is clear: 42% of all digital goods and services sales are prepaid airtime and data. The prepaid market in South Africa has healthily expanded, with an anticipated annual growth rate of 8.2% over the next five years.
When it comes to customer acceptance and product demand, a study by iKhokha found that small businesses in South Africa that sell prepaid products see an average increase in foot traffic of 20%.
Broadening the prepaid space
85% of cell phone packages in South Africa are prepaid, but airtime and data only scratch the surface of prepaid vendors’ offering.
From electricity bills to traffic fines to gaming vouchers, prepaid platforms put various products and services in play for businesses to increase their basket size.
Welcoming the uptake of prepaid vouchers is iKhokha. The fintech has been a trusted supplier of prepaid products for several years, but their service has recently undergone a radical update. The result is iK Prepaid, a digital business tool that lets merchants sell and settle a wide variety of prepaid products using their iKhokha card machine.
Along with improving the user-experience, iKhokha has most recently added Hollywoodbets and OTT vouchers to their prepaid offering which is a game changer for small business owners.
“We're excited to contribute to the growing prepaid market in South Africa by introducing our new gaming offering. Our goal is to empower SMEs, drive growth, and enhance financial inclusivity, making iK Prepaid a catalyst for positive change" - Matt Putman, CEO of iKhokha
To find out more about how iK Prepaid is helping the SME sector grow, visit the iKhokha website: www.ikhokha.com.