Swish Payment Platform in Zambia

 

Photo by David Dvořáček on Unsplash

Swish is Zambia’s fastest-growing mobile payment platform that can be accessed through mobile application software (Apps) or quick mobile phone codes commonly referred to as Unstructured Supplementary Service Data (USSD). The platform connects consumers to merchants through innovative payment services that make cashless payments possible and accessible. This platform caters to a wide array of merchants ranging from street-side vendors to large retailers. Swish Pay is not a wallet but a platform that offers one the flexibility to securely pay from one's available sources of funds. Such sources may include mobile money wallets, bank accounts, Visa, or Master cards.    

What led to the Innovation of Swish?

The idea of a Swish Mobile Payment Platform came into being due to the desire to close gaps and mitigate discrepancies that were observed in the market. Among the issues identified was the poor service extended to micro-merchants mostly due to high setup costs compounded with low demand from target customers and high transaction costs, when it came to point of sale (POS) markets. Other challenges which were identified included low motivation on the part of customers to use digital forms of payment. Clients saw no need of using such payment methods when cash continued to be regarded as a more convenient and acceptable alternative.  

 

Swish, as a mobile payment service was originally developed and popularised in Sweden.

Swish … is a mobile payment system in Sweden. The service was launched in 2012 by six large Swedish banks, in cooperation with Bankgirot and the Central Bank of Sweden. It had 6.5 million users as of September 2018 (total Swedish population: 10.2 million). Swish is a member of the European Mobile Payment Systems Association.

 

How many versions of the app are there?

There are consumer and merchant versions with either USSD or mobile app platforms.

Consumer version

The Consumer version allows consumers to make payments using their mobile phones. Both the mobile and USSD versions support a number of  (linked) fund-source options including bank account, e-wallet, mobile money wallet, debit, and credit card.  This service provides a smart, convenient, secure, and seamless mode of mobile payment in that you can access literally any wallet, card, or account from a single gadget as long as it is Swish-enabled and make transactions.

Merchant version

The Merchant App is separate and different from the Consumer App. Its payments platform supports receipts through the Android App, or via the USSD platform, which can be set up on both mobile phones and Android points of sale (POS).

Swish for consumers

 For the consumer version, consumers who use Android phones have to download the SWISH Mobile App from Google Play Store and install it on their gadgets. Moreover, both  Android users and non-Android users can access the USSD version by dialing *767#. Once the app has been activated, sources of funds can be linked to it, and then payments can be made to merchants from any linked source.

How does Swish for Consumers work?

Consumers may utilize a Smart App or the USSD version to pay their merchants using a QR code or phone shortcode. Upon completing registration, consumers can link their various sources of funds to the app. The app then serves as a payment facilitation platform to initiate or accept payment.

App users can view different products and services available and utilize a separate feature on the app to access payment options.

What steps should one follow to start using the Swish App?

1. Registration

i. Download the App from Google Play Store and install it on your phone

ii. Enter requested details to receive a one-time-password (OTP)

iii. Enter OTP when prompted

iv. Generate your MPIN

v. Registration is completed 

2. Linking payment methods  

To link a payment method to the Swish App,  navigate to the menu on the left-hand side of the home screen and select the Add Payment Method option. When prompted, enter your MPIN and tap the Add Account button.

If you are linking a Master card or Visa card:

i. Select the Add Card option and fill in required details from your card

ii. Using the OTP sent to your phone through SMS, verify your card

iii. Enter your OTP and tap submit

iv. Your card is successfully linked

If you are linking a mobile money wallet:

i. Select the Add Mobile Wallet option

ii. Select mobile money  service operator

iii. Enter your mobile phone number and tap the Confirm button

iv. Your mobile money wallet is successfully linked

3. Paying for products or services

i. Begin by entering merchant till number or scanning merchant QR code

ii. Enter amount to be paid

iii. Type in your Swish MPIN

iv. Select payment method or fund source

v. Enter OTP sent to your mobile if using card or wallet pin if using mobile money

vi. Approve the transaction

 

Swish for merchants

Merchants are provided with a Merchant App that allows them to transact with their consumers and  receive payment. The merchants are required to assign one settlement account with their preferred financial institution.

How does Swish for merchants work?

This platform is meant for merchants and is used specifically for collections. This App has a feature that allows it to generate a dynamic or static QR code. The code is linked to a collections account which may be a bank account, mobile money wallet, or any other e-wallet.

The USSD Merchant Platform also supports the receipt of funds from consumers. As such, merchants can use either a QR Code or USSD platform linked to their account to demand payment.

How can you become a Swish Merchant? 

To become a Swish Merchant, follow the following four easy steps:

           1.  Submit your application

Begin by filling an application blank and attaching the required documents 

2. Set up and training

Upon completing the first step our team will brand your business and start training your staff. 

3. Account activation

Using account details sent to your email address, access your Swish Merchant Account 

4. Support and monitoring

Dial 767 for on going support and assistance to access our 24/7/365 Swish customer support centre

Are merchants supposed to pay for Swish payment services?

 Yes, merchants are required to pay for promotions that they drive on the Swish platform, in addition to paying transaction fees.

Promotions include loyalty promotions and various incentives meant to increase customer retention and increase customer footfall. Moreover, statistics of customer behavior and participation will be made available by the Swish platform.

Transaction fees charged are very low, they range from 1.6% to 2% of annual sales turnover. These fees are charged according to merchant type.

First-tier merchants

These are merchants that have an annual turnover of over K20 000 000. These merchants are charged 1.6% of their turnover.

Second-tier merchants

These merchants have a turnover ranging between K2 000 000 and K19 999 999. Merchants in this bracket are charged 1.8%.

Third-tier merchants

Merchants in this tier have an annual turnover of less than  K2 000 000. Third-tier merchants are charged 2% of their annual turnover.

 Concerning the costs of integration, activation, support, and management for participating financial services providers, these will all be borne by Swish Pay. Moreover, financial services providers receive up to 30% of the revenue from merchants.

  

What are the benefits of being a Swish subscriber?

i. There are no monthly fees that need to be paid for using the service

ii. Low transaction costs

iii. Increase visibility of your showcased business offers and promotions

iv. Access to customer analytics and insights that avail you with more information about your customers

v. Access to transaction history and reports

vi. Quicker fund settlement facility

vii. Boost your online presence with our free listing service

viii. Receive instant notifications every time your customers pay for goods or services

ix. Use only one platform for payments

x. Customers can easily locate your business using the Merchant Locator

xi. Costs of handling cash and other related risks are reduced

xii. Take advantage of our embedded customer loyalty and rewards program

xiii. Gives your customers a digital experience

xiv. Makes reconciliation of your customer payments easier

xv. Consumers have the choice to use the payment method they prefer

Conclusion

Swish has a number of pros compared to other money transfer and payment services currently available on the Zambian market, as can be seen from the above discussion. Making or receiving payments can never be easier and more convenient than they are on the Swish platform. As if this were not enough, there are a number of incentives that come with the Swish subscription. It makes a lot of business sense to jump on the Swish bandwagon, especially when we take into account the fact that quite a number of countries including China have either developed or are contemplating developing cashless payment systems.

 

May 30, 2021 Tags : Product reviews

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