By: Noxolo Majavu
A QwaQwa-born businessman who is passionate about SME financial inclusion has launched software that is aimed at making payment solutions and debt repayments seamless. Teboho Twala is riding on the wave of his success after he pioneered the Zakhaa Fin Tech start-up for small businesses and customers to make secure transactions and arrange debt repayments. Twala was fuelled to create the platform by his personal experiences, where he observed situations of trust-based agreements often leading to difficulties in collecting payments. “These concerns have also become prevalent in my businesses, with instances of customers leveraging personal connections to obtain credit without proper documentation. Unfortunately, these informal arrangements frequently result in misunderstandings and uncollected debts due to the lack of formal records,” Twala told Vutivi News.
According to Twala, the payment issue arises when customers request services or products, often promising partial or full payment by month’s end, yet consistently fail to deliver. The lack of collateral leaves small business owners vulnerable, as their earnings depend solely on trust and undocumented agreements. He further said that his inspiration was shaped by both his experiences and educational background, Twala holds a Master’s in Management in Entrepreneurship and New Venture Creation from Wits Business School. This motivated him to create a system that addresses the challenges faced by small businesses in managing deferred payments.
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“Zakhaa is currently undergoing a testing phase with a few merchants, which has yielded positive feedback. Zakhaa has plans to launch a beta programme soon, with approximately 100 merchants expected to participate in the programme. The beta programme will allow for improvements to the product before the formal product launch anticipated to take place in the fourth quarter of 2024,” Twala further said. In terms of the payment system work, Twala explained that Zakhaa facilitated the processing of both card payments and deferred payment (buy now, pay later) transactions. According to Twala, this enables businesses to accommodate customers who require a good or service but cannot afford the full amount upfront.
“Zakhaa allows you to process a card payment for the immediate portion and use the deferred payment option for the remaining balance. The app employs a rigorous verification process, confirming both the customer’s identity and bank account information. “Following verification, a debit order authorisation is transmitted to the customer’s banking app or via SMS, outlining the details of the recurring debit order agreed upon with the customer.” After that, a signed agreement is delivered to both the business owner and the customer for transparency and record-keeping purposes. Additionally, monthly statements are sent to both parties, detailing the amount paid and the outstanding balance. Zakhaa further prioritises security and utilises robust cybersecurity measures to safeguard the information of both business owners and their customers.
