Capitec, the South African retail bank, has integrated a novel function called “Pay Me” into its banking app. This feature, by employing Quick Response (QR) code scanning technology, provides a digital platform for immediate, user-friendly, and secure transactions among its clients.
The Pay Me feature gives users the freedom to transfer money to other Capitec clients free of charge. It’s a real-time process where users generate a unique QR code, which the payee scans using their Capitec app to initiate the payment process. One caveat is that this feature is limited to interactions between Capitec bank customers.
Consequently, it is not compatible with users from other banking institutions.
Francois Viviers, the Group Executive of Marketing at Capitec, discussed several potential use cases for the Pay Me feature. He noted, “Using physical cash carries inherent risks and costs. We aim to mitigate these challenges by offering our customers, from various backgrounds and lifestyles, a more streamlined and safer payment option with our Pay Me feature.”
The Pay Me feature is particularly useful for making minor purchases at local vendors, tipping service providers such as car guards, buying treats like ice creams at the beach, or even splitting a restaurant bill with friends. Additionally, it offers an easy solution for sending money to family or friends.
Despite its recent introduction to the market last week, without any substantial promotion, the Pay Me feature has been widely adopted by Capitec customers. It has already witnessed more than 2.5 million users leveraging its service.
For those interested in using the Pay Me feature, the process is as follows:
- Firstly, users can access their unique QR code via the Capitec app. For those who prefer a physical copy, the bank provides a printed version of the QR code. This comes enclosed in a plastic pouch with a lanyard for easy carrying and is obtainable at any Capitec branch.
- To initiate a payment using the Pay Me feature, users simply need to choose the “Scan to pay” option available in their Capitec banking app. Following this, they will be prompted to use either their app PIN or biometric data (like a fingerprint or facial recognition) to authenticate the transaction.
- In generating the QR code in the app, users select the ‘Transact’ option, followed by the ‘Pay Me’ option. Here, they can choose between two variations of the QR code: ‘My QR’ and ‘Custom QR’.
- ‘My QR’ generates a standard personal QR code. No specific amount is pre-specified for transactions using this QR code. Payments received via this method automatically route to the user’s main savings account.
On the other hand, ‘Custom QR’ allows users to predetermine the transaction amount. This function can be particularly useful for business owners who want to set a fixed price for their goods or services. Furthermore, the custom QR code offers users the flexibility to choose the account into which the payment should be made.
Once the QR code is ready, the payee scans it using their Capitec app to finalize the transaction. The bank assures that these transactions are processed instantly, thereby saving customers’ time and providing a smooth banking experience.
