Ozow implements 0% processing fees for NGOs
Part of the problem is the high fees associated with payment, with costs varying between 3% and 5% for credit card payments. Ozow has, thus, introduced 0% processing fees for NGOs, enabling them to receive payments of any amount for free.
Thomas Pays, the CEO of South African digital payments platform Ozow (formerly i-Pay), says digital payments would transform revenue collections for NGOs, bringing in much-needed funds to address socio-economic challenges in areas including health, education and poverty alleviation.
“Funding is the biggest pain point facing South Africa’s NGOs and charities right now. By making it as easy as possible for people to make donations, and ensuring as few collection costs as possible, NGOs could see a significant uptick in their ability to collect money,” said Pays.
Broader market access
Electronic payments are generally limited to people who have credit and debit cards – which excludes a large part of the population. There are only 8 million active credit card users in South Africa - and for NGOs on the financial edge, relying on the credit card-carrying market alone is no longer a viable option.
“There are over 49 million bank accounts in SA, presenting a much larger addressable market and more cost-effective payment opportunity for NGOs,” said Pays.
Digital payment platforms allow customers to make immediate payments via SMS, email, or even QR Code. This offers people who do not have debit or credit cards the opportunity to donate digitally.
“For online payments, donors don’t have to pause their online shopping to make a manual EFT payment, nor enter debit or credit card details and go through the authentication process. The NGO gets instant notification that an irrevocable payment has been made. This is a great opportunity for NGOs to take their fund-raising to the next level,” concludes Pays.
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