We believe that the POC achieved its objectionsobjectives, which were:
Introduce a cashless solution in general trade (GT) that has a hybrid approach to cashless payments in order to cartercater for both the banked and unbanked/underbanked customers.
The payment system needs to be:
Seamless, safe and efficient .
Risk proof- Fromproof from corruption and robberiestheft.
Able to Verify Fundsverify funds, and GUARANTEE Paymentspayments.
Able to electronically track (audit trails) transactions.
and have minimal human intervention, resulting in greater accuracy and control.
Scenario 1 proved that:
When we put resources in trade that will monitor and engage with the customer on a daily basis, we can increase our transaction rate to over 40%, however the cost to implement will be high.
As there is a high activity during the first month of implementation, the transaction rate will be high, however when time goes by the transaction ratesrate normalises to around 15%.
This is due to customers viewing cashless payments as being more costly than paying direct cash, or not having a commercial value for them (due to them paying more to convert cash to a digital wallet).
Scenario 2 proved that: (Desired Approach)
In the area where the service provider is not dominant, adoption will be slow, and customers refuse to convert to a new service provider unless there is a greater commercial value for them.
It is therefore our recommendationsrecommendation that Tiger Brands should issue an RFP to all players in the space to bid for the service, rather than the business creating its own cashless solution.
This will reduce the risk of loss of revenue of churned devices (lost or inactive devices) and cost operation, whilst providing us with a greater access to the market (in relationsrelation to customers already transacting cashless).