Co-op Bank Launches Online Payment System For SMEs

The Co-operative Bank of Kenya has launched an online payment solution to cater to small businesses in Kenya. Co-op says the solution is aimed at helping consumers who are opting for contactless payments especially in the wake of the Covid-19 pandemic.

Co-operative Bank has various contactless payment solutions that include:

1. E-commerce solution– This enables businesses to receive card payment through their websites or app
2. POS solution– merchants don’t need to handle cash, the customers can pay for their goods and services via card at a Co-op Bank POS terminal.
3. M-Pesa Paybill 400200 – Customers can pay directly into the merchants’ Co-op Bank account via M-Pesa paybill number 400200
4. M-Pesa paybill 400222– With our Pay bill 400222 reconciling of payments done via M-Pesa into your Co-op Bank account is easy! The statements include the customer name, student number or house number, and their phone number making payment reconciliation easy. This solution is ideal for schools, landlords/landladies, or merchants that receive bulk payments.

“However, the bank is cognizant of the rise of online merchants who conduct their payment via social media channels like Facebook, Instagram, Twitter, Online market places like Jiji.co.ke e.t.c,” said the lender in a statement.

According to the lender, some of these merchants might be missing out from customers who prefer to pay via card. Some of these merchants do not have a physical location where the customer can visit and pay via a POS terminal, moreover, some customers prefer the goods to be delivered to them at home and have the option of paying via card.

“For this reason, the bank has enhanced its E-commerce solution, making it possible for business owners to receive payment via card without necessarily investing on a website or an app,” added the bank.

Read More: Co-op Bank and Safaricom Partner to Support Merchants

How does the new system work?

1. Once the customer and the merchant agree on the pricing, the merchant sends the payment link to the customers’ email address.
2. The customer will receive the link via email, open it and it opens up a portal where they will insert their card details and the amount they are to pay.
3. Once the payment goes through, the merchant will receive a payment confirmation via email and SMS.
4. The customer will also receive a notification via SMS in the event they have subscribed to an SMS alert with their card provider.

What is more, this enhanced Ecommerce solution is dubbed the ‘Pay-By-Link’ Solution.

What are some of the advanced of the ‘Pay-By-Link’ solution?

1. The merchant does not incur any cost to get the Pay-By-Link solution. It is FREE to get onboarded.
2. The solution is secure, because it is 3D secure, with two-factor authentication for all card payments
3. In the event a customer makes a wrong payment, the merchant can reverse the payment without calling the bank for a reversal
4. The customer cannot reverse a payment, therefore reduces the risks to merchants, to lose money from dubious characters
5. Payment reconciliation is easy for the merchant since they can track payment and view payment from a single dashboard.