The 7th Annual Township Economy Summit and Expo, hosted by the Township Enterprise Agency (TEA), gathered entrepreneurs across a multitude of industries in efforts to ignite township growth.
At this event, SME South Africa spoke with Richard Charlie, the Head of Sales at Shop2Shop. Richard shared how Shop2Shop is helping township businesses move into the digital world through simple, low-cost payment tools.
Shop2Shop is well known in township communities, but many still do not understand the full impact of what they do. Richard explained how their system works, why it is growing so fast, and how it supports small business owners.
Creating a Simple and Affordable Payment System
Richard described Shop2Shop as more than a company that sells card machines. The Shop2Shop payment system is a solution built for township businesses.
Most POS machines cost between R1 200 and R2 000, which many spaza shops cannot afford. Shop2Shop sells its devices to spaza owners at a more affordable rate.
“The idea is not to make money from the device,” Richard said. “The goal is to empower businesses.”
Shop2Shop works with local resellers who sell these devices in the township. This makes it easier for entrepreneurs to access them and trust the process. The company’s aim is simple: help small businesses accept payments without fear, stress, or high costs.
How the Shop2Shop System Works
Many people in townships use SASSA cards to buy goods. Shop2Shop allows them to:
- Withdraw cash at a Shop2Shop point, or
Tap their SASSA card to pay for items
When a customer taps to pay, the money goes straight into the shop owner’s Shop2Shop wallet. The money reflects immediately. There is no long waiting period.
This helps the entrepreneur because they can:
- Restock goods right away.
- Pay their wholesaler.
- Transfer money.
- Keep less physical cash on hand.
Payments from the entrepreneur to wholesalers using Shop2Shop are free. This removes the risks of carrying cash and cuts down on extra fees. Wholesalers that still accept cash can drop money in a Shop2Shop safe. The cash reflects digitally once deposited. This system helps everyone move between cash and digital payments with ease.
Using Digital Payments to Offer Small Loans
Shop2Shop also gives small loans to business owners. These loans are based on how the owner uses the device.
However, in order to give out these loans, Shop2Shop needs to understand how the business performs financially “If you’ve been on our system for six months, we know who you are and how you transact,” he said.
This digital record allows the company to offer:
- Overnight loans for quick stock purchases.
- 7-day loans.
- 14-day loans.
- 30-day loans.
These loans are small, simple, and fast. They help entrepreneurs who often need money to buy stock quickly. For shops that sell fast-moving goods like bread, eggs, chips, or airtime, this type of support is very important.
Why Township Entrepreneurs Choose Shop2Shop
Richard made it clear that Shop2Shop is growing fast. “We are the biggest. But we stay under the radar,” he said.
Entrepreneurs choose Shop2Shop because:
- It is affordable.
- There are no hidden fees.
- Money is available right away.
- The system fits the way township businesses work.
- Transactions are clear and fair.
Richard also said that many banks charge hidden costs that confuse small business owners. Shop2Shop avoids that. Today, the company has more than 200,000 shops on its system across South Africa.
Helping Townships Join the Digital Economy
Shop2Shop’s work is about more than just payment devices. It helps township entrepreneurs join the digital economy while still working in their local environment.
- Business owners get faster access to their money.
- They can reduce the risks of handling cash.
- They can qualify for small loans.
- They can track their business better.
This support strengthens small businesses and allows money to stay within the community.
Moving Township Businesses Forward
The township is one of the largest contributors to the South African economy, bringing in billions yearly. At the very least, township-based businesses need solutions that allow them to operate without unnecessary hassle. Shop2Shop is an example of a company that is not just in it for the money, but brings about tangible solutions for entrepreneurs.
The 7th Annual Township Economy Summit and Expo, hosted by the Township Enterprise Agency (TEA), gathered entrepreneurs across a multitude of industries in efforts to ignite township growth. At this Read More
