With only two months of the year left, the time for stokvel money to be paid out is not far off. As a spaza shop owner, it’s very likely that a significant percentage of your customers have savings into a stokvel. If those customers don’t have bank accounts, their savings will be paid out to them in cash – a risky way to manage those precious savings. Prepaid cards are an easy and secure way for your customers to store these savings – selling them in your store will not only benefit your business, but financially empower your valued patrons.
Over 11.4 million people in South Africa puts savings into stokvels
Around R44 billion is saved into stokvels every year in South Africa, and there are over 11.4 million people who put money into them, according to the National Stokvel Association of South Africa. That’s just under 20% of the population, demonstrating how important stokvels are for individuals without access to traditional savings accounts with major banks – and indeed, around 50% of stokvel members do not have bank accounts, according to a report by the Banking Sector Education and Training Authority.
Prepaid cards are a great alternative to bank accounts for keeping savings
There is, however, another option for stokvel members to safeguard their stokvel savings without investing in opening a bank account or keeping their savings in cash. Prepaid cards can be used to transfer cash into a mobile wallet that is linked to a prepaid card and mobile phone number. By selling these prepaid cards in your store, your customers have easy and immediate access to a Visa card – without the hassle of opening a bank account and at extremely competitive rates.
Stokvels and individuals alike can use prepaid cards to keep savings safe
Not only can prepaid cards be used by individual stokvel members, they can also be used by the stokvel itself to collect its members’ monthly payments. Members are able to deposit cash into the prepaid card’s mobile wallet by cash deposit, EFT or even using their personal mobile money account. Not only is this a lot cheaper than depositing money through a bank, it’s instantaneous too. The beauty of using prepaid cards, instead of cash, to manage stokvel payments is that members can manage their finances regardless of where they are in the country. All they need is their mobile phone or access to the internet.
You, the shop owner, will benefit by drawing more customers into your business
Extending your product offering with prepaid cards will attract more customers to your shop. Not only will they attract stokvel members looking for a way to protect their savings, it’ll draw in customers who don’t have bank accounts but want more financial freedom. Even those with bank accounts can use prepaid cards for budgeting purposes.
Don’t put your customers’ stokvel savings at risk by not providing them with a safe alternative to managing their finances soley in cash. For more information on just how prepaid cards can benefit your customer and your business, download the Reload brochure.