Newly established SA fintech startup Spot Money offers locals a mobile open banking platform that integrates with various bank and payment services has launched its mobile tap-to-pay function. This new feature will enable customers to use their mobile to make secure, contactless payments on point-of-sale (POS) terminals that accept tap-to-pay for physical cards.
The platform was born out of Virgin Money SA, from which it rebranded in December 2020 following Absa’s discontinuation of the Virgin Money SA credit card. Spot Money allows customers to instantly create no-monthly-fee bank accounts and virtual cards from the comfort of their home.
The platform offers a number of useful features, including:
- Loans and insurance – Offered by a selection of financial service providers through Spot Money’s open banking marketplace.
- Money transfer – Send cash to other Spot users at no charge.
- Tap to pay – Supported by the Spot debit card and NFC-enabled Android devices (launching soon).
- QR code – Support for QR code payments from all major platforms, including Snapscan and Zapper.
- Cashback rewards – Earn cash back on purchases when shopping at Spot cashback partners.
Users can also get car insurance or life and funeral cover quotes through the Spot Money application.
How does it work
The new feature enables users with android devices to use the Spot app on their phones to conduct contactless payments at POS systems. Users must open the Spot app, click on the option of tap-to-pay and tap their phone on the POS terminal. The app works with Mastercard technology to conduct the payment.
Andre Hugo, CEO of Spot Money provides insight into the new feature.
“Spot Android users now have the convenience of using the app as an alternative to their Spot Money Card. So if you forget your wallet at home, you can just use your phone. This makes things easier and safer for our customers.”
The global pandemic has resulted in a stark rise in digital and contactless payments to curb the spread of the virus. As a result, more businesses and consumers have opted to go cashless. “E-commerce, home delivery, and peer-to-peer payments went through the roof; digital payments became the de facto standard. And it’s not just for the tech-savvy or millennials, either: this trend is for everyone,” adds Hugo.
According to a Mastercard consumer sentiment study, 75% of participants were opting for contactless payments due to safety and hygiene precautions. The study was conducted during the early stages of the pandemic and is an indication of the on-trend move to digital payments.
“Tap-to-pay isn’t just physically safer: it’s also more secure. During transactions, your device never leaves your hand, and the nature of the encryption means every purchase has a unique set of data, which is protected at all times,” concludes Hugo.
Spot Money
Founded in January 2021, Spot Money is the country’s first open banking platform that combines a range of payment features including digital banking functionalities, and a marketplace that offers a range of financial services including insurance and loans. All this is accessible in a simple and easy-to-use ‘super-app’.
The app is available for download on Apple, Google Play, and Huawei App Stores.
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