Kazang and TymeBank partner to bring easy cash withdrawals to the informal market

Kazang, the prepaid value-added services (VAS) and card acquiring business within Nasdaq and JSE-listed fintech Lesaka Technologies, has partnered with TymeBank, the first digital bank to reach profitability in Africa, to make cash withdrawals more accessible to consumers in townships, rural areas and other underserved areas.

TymeBank customers can use their cards to withdraw cash from spaza shops and traders nationwide that operate Kazang Pay-enabled VAS terminals. This offering turns informal traders into one-stop shops where customers can buy prepaid electricity, airtime and data as well as gaming vouchers, do daily shopping, send remittances, pay bills and draw cash. 

Kazang operates a national network of more than 90,000 value-added services (VAS) devices processing around 3 million transactions daily—with around 60,000 of these enabled to accept card payments and allow cash withdrawals through the Kazang Pay card acceptance solution for micro merchants.

Malcolm Visagie, Business Manager at Kazang Pay, said: “Cash withdrawal is an invaluable service for the informal market because consumers in townships or rural areas can do all their day-to-day shopping and transacting at a local trader. This removes the need to pay for a taxi and queue at an ATM to access their wages or social grant payout.

“It also enables customers to withdraw money as needed, rather than making one large withdrawal on a monthly or weekly basis. For merchants, offering TymeBank withdrawals is a great way to attract foot traffic and build customer loyalty. Additionally, it helps reduce cash-handling risks and costs by cycling cash through their customer base.” 

Withdrawals and card payments settled through the Kazang Pay terminal are instantly settled in a digital wallet. Merchants can pay their suppliers from wallet funds. This reduces the security risks associated with cash and helps merchants to manage their operating capital more efficiently.

Visagie added that a key factor in the success of partnerships between Kazang and banks like TymeBank is the joint investment they make in marketing. In the case of TymeBank, the Kazang Pay in-field marketing team installed thousands of posters and stickers at vendor points of sale nationwide as well as wall paintings at strategic sites. 

Says Cheslyn Jacobs, Chief Commercial Officer at TymeBank: “Among our 10 million customers are many who still rely heavily on physical cash for day-to-day transactions. By working with Kazang, we can offer them more points where they can access easy withdrawals, including at shops and traders that are conveniently located in their communities. 

“Kazang’s ability to drive awareness and market penetration through its specialist in-field marketing team is contributing notably to our collective success.”