When comparing iKhokha and Flash, two popular card payment solutions in South Africa, it’s essential to assess their features, fees, ease of use, and target audience to determine which is better suited for specific business needs. Both solutions are designed to facilitate easy card payments for small businesses, informal traders, and growing enterprises. Here is a detailed comparison:
1. Overview of iKhokha and Flash
iKhokha
iKhokha is a South African fintech company that offers mobile card machines to small businesses. It is designed to provide affordable and accessible payment solutions, helping small businesses accept card payments anywhere, from traditional stores to pop-up markets. iKhokha offers a variety of card machines, integrated payment systems, and e-commerce payment solutions.
Flash
Flash is also a South African fintech company known for its network of Flash Shops, which empower informal traders and spaza shops to offer essential services like airtime, electricity, and bill payments. Flash enables these small traders to accept cashless payments but also provides basic card payment machines for merchants looking to expand their service offering.
2. Target Market
iKhokha
- Primarily targets small to medium-sized businesses, street vendors, market stalls, and service providers who need portable card machines.
- Suitable for merchants who want to accept card payments in retail, food, and service industries.
- Also offers payment solutions for e-commerce businesses, making it versatile for both in-person and online sales.
Flash
- Mainly targets informal traders, such as spaza shops, street vendors, and low-cost retailers.
- Flash’s primary function is to allow traders to provide prepaid services like airtime, electricity, and bill payments.
- The card machines are an add-on for traders who want to extend their services beyond the typical cash-only model, offering more convenience to customers.
3. Product Offering
iKhokha Card Machines
- Mover Pro: A pocket-sized Bluetooth-enabled card machine that works in conjunction with a smartphone via the iKhokha app. It’s a basic, affordable option suitable for businesses that want portability and low setup costs.
- Shaker Solo: A standalone, compact card machine with 3G connectivity, allowing for card payments without needing a smartphone.
- iK Flyer: Offers a range of integrated features, including tap-on-phone technology, allowing merchants to accept contactless payments directly through a mobile device without a card machine.
iKhokha offers various payment processing solutions, such as payment links and integration into POS systems for both online and in-store purchases.
Flash Card Machines
- Flash Go: A mobile, compact card machine that operates via 3G or Wi-Fi. It’s simple and affordable but lacks some of the more advanced functionalities that iKhokha provides.
- Flash Storefront Machines: Designed for spaza shops and informal traders, Flash machines allow for prepaid services (airtime, electricity, etc.) and bill payments, alongside basic card payments. These machines are often placed in local shops to cater to low-income, unbanked communities.
4. Transaction Fees
iKhokha
- iKhokha charges a flat transaction fee that ranges between 2.75% and 3.25% per transaction, depending on local and international transactions and the volume of sales processed each month.
- iKhokha offers a tiered fee structure, meaning the more you sell, the lower your transaction fees. This is advantageous for businesses that see higher volumes of card payments.
- There are no monthly rental fees, making iKhokha an attractive option for small businesses looking to minimize costs.
Flash
- Flash typically charges around 2.95% to 3.5% per transaction for card payments. This fee is relatively standard but may be slightly higher than iKhokha for lower-volume traders.
- Flash does not charge rental fees for their card machines, which can be appealing to informal traders who need a low-cost entry into accepting card payments.
- However, Flash does offer a prepaid model for some of its services, where traders buy Flash Points, making it somewhat more complicated for certain transactions.
5. Hardware and Connectivity
iKhokha
- iKhokha’s devices are portable and mostly wireless, operating via Bluetooth, 3G, or Wi-Fi, making them ideal for businesses on the go.
- The machines are easy to set up, with plug-and-play functionality, and can be operated via a smartphone app or as a standalone device.
- The iKhokha app also provides insights into sales data, transaction history, and business performance, offering a comprehensive management tool.
Flash
- Flash machines are more geared towards static environments, such as spaza shops and informal traders who primarily use them for prepaid services. However, Flash Go machines are portable and offer 3G or Wi-Fi connectivity.
- Flash machines tend to be simpler and more focused on prepaid services, with card payment functionality being an added benefit rather than the core focus.
- The Flash device ecosystem is tailored to low-cost setups, so the card machines may lack advanced features available in iKhokha machines.
6. Integration with Other Services
iKhokha
- iKhokha integrates well with existing POS systems, making it ideal for established businesses looking to streamline their payment processes.
- It offers integrations for online stores, allowing merchants to accept online payments via its payment gateway.
- iKhokha also offers inventory management tools, sales tracking, and business insights via its app, making it a comprehensive payment solution for businesses that need more than just card payments.
Flash
- Flash is deeply integrated into prepaid services, such as airtime, electricity, and bill payments, which makes it highly appealing for informal traders in rural or low-income areas.
- Card payment functionality is an additional service within the Flash ecosystem, allowing merchants to accept cashless payments for the first time.
- Flash does not offer advanced business tools like iKhokha, but for its target market, this simplicity is often preferred.
7. Customer Support and Ease of Use
iKhokha
- iKhokha provides strong customer support through phone, email, and a detailed FAQ section on its website.
- The devices are easy to set up, and the app provides comprehensive instructions and insights into troubleshooting common issues.
- iKhokha’s solution is built with user experience in mind, making it accessible even for merchants who may not be tech-savvy.
Flash
- Flash offers support through a large network of agents, phone support, and its app. The simplicity of the devices reduces the need for extensive customer support, as most functions are intuitive.
- Flash’s focus on prepaid services means that the card machine’s user interface is designed for ease of use, ensuring that informal traders with limited tech knowledge can still operate it efficiently.
8. Pricing for Machines
iKhokha
- The iKhokha Mover Pro is priced around R499, making it an affordable entry point for businesses.
- The iK Flyer Lite retails for around R999, offering a more robust, standalone solution with 3G connectivity.
- iKhokha also offers more advanced machines that can cost higher such as the iK Flyer which retails for R1499, but all machines are competitively priced and designed for affordability.
Flash
- The Flash Go card machine is priced similarly to the iKhokha Mover Pro, with an initial cost of around R500. The affordability of the machine makes it attractive to spaza shops and traders.
- Flash devices primarily cater to traders using prepaid services, so the cost structure may also include purchasing Flash Points for additional services.
9. Security and Compliance
iKhokha
- iKhokha machines are PCI-DSS compliant, ensuring secure and encrypted transactions. This is a global standard for card payment security, giving merchants and customers peace of mind.
- iKhokha also offers features like PIN entry for higher security during transactions.
Flash
- Flash machines are compliant with local South African standards for payment security. However, because the machines are not primarily focused on card payments, they may not offer the same level of advanced security features as iKhokha.
- Security in the Flash ecosystem is more focused on protecting prepaid transactions and customer data in the context of basic mobile services.
Conclusion: Which is Better?
- iKhokha is better suited for small to medium-sized businesses that require a comprehensive, feature-rich card payment solution. With competitive transaction fees, integration with POS systems, online payment gateways, and business management tools, iKhokha is a more versatile solution for businesses looking to grow their sales.
- Flash is ideal for informal traders, spaza shops, and micro-businesses that prioritize prepaid services like airtime and electricity. The addition of card payment functionality is useful for traders looking to expand their service offering, but it is not the primary focus of the Flash ecosystem.
In conclusion, if you run a growing business that needs flexibility, scalability, and advanced features, iKhokha is the superior choice. If you’re an informal trader or spaza shop owner who primarily deals in prepaid services, Flash offers a simple, affordable, and practical solution.
