CheqOut targets millions of Africa’s unbanked with its swipe technology

According to CheqOut founder Bradley Elliott on Ventureburn, the merchants have to sign up a CheqOut account as well as provide their banking details. They would afterwards be sent a free card reader to be plugged into the mobile phone’s headphone jack.

Customers later, have to swipe their cards through the card reader. The funds would then show in the merchant’s bank account within 48 hours.

At the moment, CheqOut is working with Visa for an EMV certification and compliance. This way, the Visa can allow CheqOut to freely accept credit card payments via the card reader.

CheqOut will have to battle it out with two other South Africa payment solutions including Ching, which enables people to accept credit and debit card payments via Mobile or Web and GustPay, a geo-fenced mobile payment solution that allows patrons and merchants to conduct transactions provided they are on the same Wi-Fi network.

CheOut recently partnered with FNB in SA and now accepts and processes FNB Cheque Cards.

Even as it targets the 14 million unbanked in South Africa, CheqOut might successfully fill in this gap as a quicker alternative for merchants trading in Africa. Africa has around 140 million Internet users the service looks to take advantage of — and it might as well serve Africa’s 230 million unbanked households. In Kenya, where mobile money has established a strong base, 17 percent of those unbanked own a mobile phone.

CheqOut on its blog, promises its subscribers that it will get a free App and Card Reader. Customers will also enjoy a contracts or paperless transaction and will start receiving payments immediately, it says.

The user charges are fixed per transaction at 3.5 percent plus 50 cent per transaction. The firm is also promising its users quick payouts and deposits into their account within two days.

The iOS app is already out and the firm is now working on an Android version.