SwitchPay - Elvey€¦ · • Charges are in line with credit card rates that are already...

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SwitchPay

MERCHANT MANUAL

Linking People With Technology

P u r p o s e B a s e d L e n d i n g

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Use SwitchPay finance to

increase your sales.

SwitchPay is a risk-free payment option that

you can offer your customers. Your customers

have access to all major credit providers

including banks in South Africa.

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Background

SwitchPay benefits to the merchant

SwitchPay benefits to the customer

Qualification criteria and documentation

Important information

Application process

Redemption process

The process

Collection process: disbursement goods

Questions & answers

Contact details

C O N T E N T

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The top South African banks, as well as

major credit providers, have partnered

with SwitchPay to offer finance for

products and services.


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SwitchPay is a service offered on apoint-of-sale (POS) device.

This service provides customers with

the opportunity to use an alternativepayment method, namely purpose

based lending (PBL). When purchasing

a product, customers benefit as they

have immediate access to finance with

the added convenience of being able to

complete this process in your store.

Therefore, the inconvenience of long

banking queues is solved, enabling

customers to gain timeous feedback

from credit providers.

B a c k g r o u n d

SwitchPay was established by an innovative team of

digital disruptors who identified a gap in the market to

address millennials’ need for easy access to finance,

fuelled by the latest international trends. The teams’

wealth of experience in retail and consumer credit, led

to the development of this popular alternative financial

payment solution.

ABOUT SWITCHPAY


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B e n e f i t sTO THE MERCHANT• Increased sales are generated by the alternative

payment process without any risk to the merchant.

• The process is systematic ensuring a very quick response time.

• It offers your customers additional payment solutions enabling them to purchase from you.

• The customer is automatically allocated to the mostsuitable credit provider.

• Everything is done on the POS device, meaning

no paperwork is required.

• The monthly fee is reasonable and cost effective.

• Charges are in line with credit card rates that are

already incorporated in your margins.

• No POPI exposure with personal customer info

lying around.

• No FICA agent compliancy required as a merchant.

• No bank consultants in your store.

• Empowered sales staff to activate the

finance application.

• The device is available on a rental basis.

• The loan payment is directly settled by the bankinto your (the merchant’s) account.

• The SwitchPay value proposition enables upsell andcross-sell opportunities.


• Convenience of immediate access to finance,

meaning no more banking queues and waiting for

days/ weeks for confirmation and approval.

• Fast approval response.

• It offers an alternative payment method.• The customer is allocated to the most suitable and

relevant bank.

• Alternative credit providers.

• No visits or phone calls to banks as the entire

process is executed digitally.

• Reduced paperwork.

B e n e f i t sTO YOUR CUSTOMER

Turn every rainy day into sunshine...

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Employed 18 years or older

Finance from R500 to R239 000Over a 6-month, up to a

60-month period.

Note:

Interest rates subject to each

individuals’ credit profile and

credit provider risk criteria.

F i n a n c eQUALIFICATION CRITERIA

R e q u i r e dDOCUMENTATION

• Latest three months’ bank statements.

• Last three payslips. (If self-employed:

letter from auditors stating income.)

• Certified colour copy of ID.

• Proof of residence.


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• All goods purchased fall under the Consumer

Protection Act (CPA) providing for a cool down

period to return goods.

• Consumer Credit in South Africa is poor.

• An average of two deals out of ten get approved.

• This finance option could potentially generate10% to 20% more sales for you.

• The approval time is determined by the amount of

supported documentation required by the

credit provider and how quickly the customer

can provide these documents.

IMPORTANT INFORMATION


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A p p l i c a t i o n P r o c e s s

START1

Start loan applicationprocess

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Customer receives notification via SMSto confirm loan approval

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STEP 1: Device Application

Swh

s

2Follow prompts on device

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S

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Enter pin into SwitchPay device

Print a merchant and customerapplication copy

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Customer receives cell phonenotification with pin to authorise

the application.

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1010

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PThe selected credit

provider vet the application

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START

Customer notified bySMS of the outcome

The payment is processed on thedevice at the point of sale.

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R e d e m p t i o n P r o c e s s

A spend pin will be send to the customer’scell to enter into the SwitchPay device to

redeem goods

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A customer and merchant loan application slip will be printed uponsuccessful verification with redemptionstatus of sale, merchant name and

approved amount.


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Customer notified via SMS withURL link to upload additional

information should it be required.

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s

Customer can collect goodsupon credit provider's

approval

A final review and fraudcheck of the supported

documents are done by thecredit provider

Documentation can besupplied via e-mail,

WhatsApp or direct tothe credit provider


T h e P r o c e s sCustomer data assigned to most suitable credit provider

A final review and fraud check of the supported

documents is done by the credit provider.

If additional

customer data

required:

Customer supplies documents via:

• E-mail

• WhatsApp

• Direct to credit provider

Applicant receives SMS

stating reason for decline.

Application is closed.

Applicant is issued with the

approval and collection

process via SMS.

DECLINED APPROVED

Customer choose

different payment method.

Customer notified by SMS Customer notified by SMS

If additional

documents

required:

Customer notified by SMS

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A URL link will be provided as

part of the SMS from which

additional information can be

entered and uploaded.


Customer collects goods

(see p14)

Back office process:

• Customer updated via SMS.

• Customer’s account debited

on an agreed monthly basis

by credit provider.

Merchant payment:

• Receive payment

post redemption

and receipt of goods.

• Payment made

within a 48-hours.• Payments released

before 12:00 am

will reflect the

following afternoon.

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STEP 2: Behind the scenes


D i s b u r s e m e n t :

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START

2 Settlement to merchant account is processedand funds will reflect in the merchants accountwithin 48 hours

Disbursement is authorised on verification ofpin, and the recon is authorised and processed1

collecting goods

FINISH

3 Collect goods from merchant


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N o t e s


How long does the application process take?The provisional approval of a loan application can take up to

two hours. Approval periods depend on the loan amount and

credit provider.

What supporting documentation may be requested by thecredit provider?The general documentation requested from credit providerscould include:• FICA (Proof of address)

• Copy of ID

• Payslip (up to three months)

• Bank statements (up to three months)

Depending on the credit provider’s requirements, the

supporting documents required may vary and some of the

above documents may have to be certified.

How would a customer know if their application wasapproved and/or if any further information is required?SwitchPay has a live link to the various credit providers which

provides updates on the status of all pending loan applications.

SwitchPay will inform the customer of any such updates via

SMS or by e-mail.

When can the customer collect the product(s) and/orservice(s)?The customer is notified immediately once the loan is

approved and is issued with notification to collect their

product(s) and/or service(s) using a SPEND PIN entered on

the POS device upon collection.

QUESTIONS AND ANSWERS

Q u e r y P r o c e s s

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C o n t a c t D e t a i l s

SwitchPay

SUPPORT CONTACT DETAILS 086 199 5008

[email protected]

FOR:• Merchant• Device• Card Payments• Sales

www.switchpay.co.za

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www.switchpay.co.za


SwitchPay - Elvey€¦ · • Charges are in line with credit card rates that are already...

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