Kazang, the prepaid value-added services (VAS) and card acquiring business within JSE-listed fintech Lesaka Technologies, has partnered with South Africa’s leading digital bank, TymeBank, to provide flexible working capital advances to licensed taverns and liquor outlets that use the Kazang point of sale (POS) devices.
Kazang Capital, in partnership with TymeBank, provides instant business funding within 24 hours. Merchants benefit from fast, flexible funding to grow their business, with no paperwork or no hidden fees. This makes financing more inclusive and accessible for small businesses that cannot access traditional bank financing.
Tavern owners can qualify for pre-approved advances to expand, restock or upgrade their businesses based on the digital records captured in their POS devices. Kazang Capital uses the digital transaction data captured in the Kazang POS to assess affordability and determine a suitable advance amount.
“Many micro merchants have ambitions to renovate their premises, buy stock in bulk to benefit from discounts, or upgrade their equipment – but cannot qualify for a traditional loan due to limited formal documentation or a lack of credit history,” says Ronan Jones, Head of Capital at Kazang.
“We are using our fintech platform and digital data to address this challenge in line with our mission to improve financial empowerment in the informal market. We are able to use transactional data to offer responsible working capital solutions to merchants who are excluded from traditional financial products.”
The solution is designed to be quick and simple. If they select an advance amount and repayment term, funds are deposited within 24 hours.
Kazang offers a full fintech ecosystem for taverns, combining tools for payments, supplier management, inventory tracking and access to working capital into one solution. The company operates over 10,000 POS terminals across South Africa’s informal licensed taverns and processes more than 1.5 million transactions per day.
Data gathered from the POS is available to clients such as fast-moving consumer goods companies, retailers, wholesalers, route-to-market suppliers, and financiers. These insights help to foster a more efficient informal ecosystem and enable brands to connect with untapped markets.
Mandla Khupe, General Manager at TymeBank, says: “Informal merchants such as tavern owners play a vital role in the South African economy, yet there is a shortage of financial products tailored to their needs. Our solution with Kazang is designed to address the barriers they face, so that they can improve profitability, capitalise on growth opportunities, and ensure the sustainability of their businesses.”