Kazang, a prepaid value-added services (VAS) and card acquiring firm inside JSE-listed fintech Lesaka Technologies, has introduced a pay card acceptance solution for Zambian merchants.

According to the company, Kazang Pay makes it 'affordable for merchants to accept card payments' on the same terminal where they sell prepaid items and services.

It adds that the Kazang Pay terminal in Zambia accepts VISA debit and credit cards, as well as mobile wallet transactions.

"Payments are settled to the merchant's Kazang wallet on the same day. It's as simple as having the customer tap or insert their bank card and enter their PIN on the secure scramble PIN pad," the business says.

Kazang says it runs over 12,000 VAS terminals in Zambia. According to the company, the goal is to have the majority of merchants accept card payments within the next six months.

The statement continues: "Benefits to merchants include low transaction fees and no monthly terminal rental fee for those that meet a modest monthly transaction threshold as well as the opportunity to grow their business through card acceptance."

Kazang is Zambia's largest VAS point-of-sale terminal provider, according to the company, offering mobile money payments, bank and mobile money cash in/out, bill payments, airtime, Zesco, and a variety of other prepaid services on a single platform.

The addition of card acceptance expands the platform's capabilities for both merchants and consumers, says Kazang.

According to the company, the debut of Kazang Pay in Zambia comes after the solution was introduced in South Africa, where about 60,000 small and micro merchants use it to accept card payments.

In Zambia, approximately 3.8 million debit, credit, and ATM cards are in circulation, with 41,000 point of sale (POS) terminals in service, however this figure is projected to increase.

Leon de Wit, managing director of Kazang Zambia, says: “Zambia has made enormous strides in terms of financial inclusion, with card usage and penetration growing at a rapid pace.

“Card transactions help merchants to grow basket sizes and potentially attract more customers, and at the same time, reduce the risks and costs of handling cash.

“Moving towards digitalised payments will also enable merchants to track sales, manage cash flow, and create a footprint that could make it easier for them to access loans.”

According to Ashley Naidoo, director of Kazang Pay in South Africa, with the launch of Kazang Pay in Zambia, the company has experienced increased VAS sales throughout its merchant network and significantly better merchant retention, and with its card acquiring solution, it can now cater to a broader merchant base.