Project allows micro-enterprises to accept payments via credit cards
Will help ‘mom-and-pop shops’ and stalls throughout the country, says SME Corp CEO
IT IS probably the first of the much anticipated Digital Malaysia slew of entry point projects (EPPs) to be go live. As of Sept 1, 2012 SME Corporation Malaysia has quietly launched the Enabling ePayment for SMEs and Micro Enterprises EPP under Digital Malaysia.
According to SME Corp chief executive officer Datuk Hafsah Hashim (pic), her agency is the public sector champion for this EPP.
“This is an area we are strongly focusing on as we want to help widen the revenue base of micro-enterprises, especially who can now accept payments via credit cards and debit cards for their goods sold and services offered.
“This facility will especially help many ‘mom-and-pop shops’ and stalls throughout the country as they would otherwise not qualify to enjoy these facilities from the banks as they would not meet the minimum monthly sales threshold.”
How it works is that TPAs or third-party acquirers will sell a piece of hardware, essentially a tiny card reader, that fits into the bottom of a smartphone or tablet device. The software that does the processing and transmitting of the financial transaction is loaded into the phone or tablet.
With this, the micro-enterprise, be it your neighborhood tailor or even favorite capati (unleavened bread) stall -- can start accepting electronic payments.
SME Corp will be subsiding 10,000 terminals with TPAs needing to sell three terminals to get the fourth one free from the agency. In essence, the TPA is getting a 25% discount per four devices sold and has to pass the savings on to the micro-enterprises. Each micro-enterprise is allowed a maximum of two devices under this EPP.
While larger companies under the SME category also qualify for this, the program is clearly targeted at micro-enterprises. The cost of the hardware in the market ranges from RM300 to RM700, says an SME Corp official.
The devices under this program come with a one-year minimum sign-up period for the micro-enterprises.
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