MasterCard has reached an agreement with Blue Label Telecoms to bring point-of-sale (POS) devices to 22,000 small businesses in South Africa.
As part of the deal 15,000 new terminals will be rolled out to traders and merchants across the country, allowing them to accept chip and PIN and contactless payment cards for the first time.
Currently Blue Label provides POS machines to South African retailers but they are mainly being used to sell pre-paid vouchers for appliances such as mobile phone credit.
A further 7,000 existing terminals will also be upgraded using MasterCard Mobile software, which will allow cardholders to use their PIN-based debit, cheque, credit card or mobile device.
Supported institutions include Standard Bank, Absa, Nedbank or the South African Social Security Agency.
Mark Levy, joint chief executive officer of Blue Label, said the partnership with MasterCard will allow for the introduction of equipment to small businesses that will boost the safety, security and convenience of electronic payments.
By Claire Archer