Kazang, a leading prepaid value-added services (VAS) provider in Zambia and a subsidiary of JSE-listed fintech company Lesaka Technologies, has introduced its Kazang Pay card acceptance solution to merchants across Zambia. This innovative service allows merchants to process VISA debit and credit card payments and mobile wallet payments using the same Kazang terminals already used for prepaid services.
Key Features of Kazang Pay in Zambia:
- VISA Debit and Credit Card Acceptance: Merchants can now accept card payments by allowing customers to tap or insert their cards and input their PINs on the secure Kazang terminal.
- Same-Day Settlement: Payments are settled directly to the merchant’s Kazang wallet on the same day, ensuring fast access to funds.
- Low Transaction Fees: Merchants benefit from low transaction fees with no additional terminal rental costs, provided they meet a modest monthly transaction threshold.
Kazang has around 12,000 VAS terminals operating in Zambia, offering a variety of services such as mobile money transactions, airtime sales, Zesco bill payments, and more. The company aims to equip the majority of these terminals with Kazang Pay capabilities within the next six months, extending the reach of digital payments in the country.
Growing Financial Inclusion in Zambia
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Zambia has seen significant growth in financial inclusion, with a sharp increase in card usage and POS transactions, which reached K 111.4 billion by 2022. This expansion aligns with the government’s efforts to encourage digital payments and reduce reliance on cash. Kazang Pay enables merchants to grow their businesses by attracting more customers, increasing transaction sizes, and minimizing the risks and costs associated with cash handling.
By offering card acceptance on the same platform they use for other services, Kazang provides a comprehensive one-stop solution for Zambian merchants. This move is expected to drive even higher merchant retention and VAS sales while appealing to a broader base of small and micro-businesses in the region.
Kazang’s Success in South Africa and Future Prospects in Zambia
Kazang Pay was first introduced in South Africa, where over 60,000 merchants use the system to accept card payments. In Zambia, there are approximately 3.8 million debit, credit, and ATM cards in circulation, with 41,000 POS terminals in use. The introduction of Kazang Pay in Zambia is expected to further boost digital payment adoption, as merchants can now seamlessly integrate card payments into their existing operations.
Leon de Wit, Managing Director of in Zambia, expressed optimism about the new service, noting that merchants have already embraced the card acquiring solution. This shift has led to increased VAS sales and stronger merchant retention. Similarly, Ashley Naidoo, Director of Kazang Pay in South Africa, highlighted the solution’s potential to empower merchants by reducing operational costs and enhancing sales management through digital payments.
This expansion represents a significant step forward in Zambia’s journey toward greater financial inclusion and digitalisation of payments.