Yoco compared with iKhokha

Yoco

Card machines

Handheld readers from R699 and the Yoco Counter at R2 999. Low enough that a small trader can start accepting cards without financing hardware.

Tiered transaction rates

Rates fall as monthly volume rises, from around 2.30 percent down to 1.20 percent in person on the Pro plan for local debit.

No monthly fee on Core

The entry plan costs nothing per month, so a seasonal or low volume business pays only when it actually takes money.

Business tools

Sales reporting, staff accounts and basic stock on the paid plans, enough for a small shop that does not need a full point of sale.

Next day settlement

Funds reach your account quickly, which matters a great deal to a small business managing cash week to week.

iKhokha

Card machines you own

The iK Flyer Lite is R699 and the iK Flyer with a built in printer is R1 499, both bought outright. There is no rental on either, so a quiet month costs nothing.

iK Tap on Phone

Turns a compatible Android phone into the terminal at no cost, which is the cheapest way in this market to find out whether accepting cards changes your takings.

Rates that step down

In person local cards run at 2.75 percent excluding VAT up to R40 000 a month, then 2.65, 2.55 and 2.5 percent as turnover rises, with custom rates above R100 000.

Settlement timed to your bank

FNB and Absa customers are paid the next business day. Nedbank customers and iK debit card holders are paid twice a day, same day, which is a real cash flow difference.

Invoices, pay links and vouchers

Send an invoice or a payment link from the app, record cash sales, and sell prepaid airtime and gaming vouchers, which for many small shops is a second income line.

Yoco

What it takes to start

About as simple as business software gets. You order a machine, verify your identity, connect a bank account and start taking cards, usually within days. There is no implementation. The only real decision is which plan, and that depends on your monthly card turnover rather than on features.

When something breaks

Local support with local hours, and replacement hardware if a machine fails. For a small merchant that combination is the product. If your turnover grows to the point where the rate matters more than the convenience, get a bank acquirer quote and compare, because at that level the relationship changes.

iKhokha

What it takes to start

There is no implementation in the software sense. You choose a machine, create an account in the app, upload your business documents for FICA verification and connect a bank account. Delivery is three to four working days anywhere in the country and the machine works out of the box. The only decision worth thinking about beforehand is which machine, and that turns on whether you need to hand a customer a printed slip. If you do, the iK Flyer with its built in printer is the one. If digital receipts are acceptable, the Flyer Lite is half the price. Tap on Phone needs nothing at all beyond a compatible Android handset, which makes it a sensible way to test whether card acceptance changes your takings before spending anything.

When something breaks

Support runs 24 hours a day, on the phone and on WhatsApp, and that is genuinely unusual at this end of the market. A trader whose machine stops working at seven on a Friday evening is losing money by the hour, and being able to reach a person then is worth more than most features. Hardware is covered by a 30 day money back guarantee, so a machine that turns out to be wrong for your counter can go back. Because you own the machine rather than renting it, a failure outside that window is a replacement you pay for, which is the trade you accept for having no monthly rental.

Yoco

• Card machines from R699 and no monthly fee on Core, so a small trader can start immediately
• Rates fall as monthly volume rises, from around 2.30 percent to 1.20 percent in person
• Next day settlement, which matters a great deal to a business managing cash week to week

• Deliberately narrow, so it is card acceptance rather than a full point of sale
• Paying R499 for the Pro rate only pays for itself above a certain monthly turnover
• Large merchants will get a better rate negotiating directly with a bank acquirer

iKhokha

• No monthly rental on any machine, so a quiet trading month costs you nothing at all
• Card machines are bought outright from R699, and iK Tap on Phone needs no hardware whatsoever
• Support runs 24 hours a day on phone and WhatsApp, which is unusual at this end of the market
• Rates step down automatically as monthly turnover grows, without renegotiating anything

• The entry rate of 2.75 percent excluding VAT is higher than the cheapest rival at low volume
• You buy the hardware up front rather than renting, which is a real cost for a new trader
• Card acceptance and simple invoicing only, so it is not a stock or table management system
• Unlimited data on the machine is a separate R75 each month if you want it

Yoco

Yoco exists because traditional South African acquirers would not onboard small merchants without a trading history, and it solved that. Onboarding is quick, the hardware is affordable, and settlement is fast. The decision is arithmetic rather than features. Work out your blended rate at your actual monthly card turnover across the three plans, because the plan fee only makes sense above a certain volume. Once your monthly card turnover becomes substantial, get a quote from a bank acquirer and compare properly, because at that point the rate difference outweighs the convenience.

iKhokha

iKhokha was built in Durban for the same merchants the banks would not onboard, and the local detail shows. FICA verification happens in the app, delivery is three to four working days anywhere in the country, and settlement timing depends on who you bank with. If you bank with FNB or Absa the money lands the next business day, and with Nedbank or the iK debit card you are paid twice a day. Support answering at ten at night matters more to a trader than a feature list does. The rate is the thing to model, because 2.75 percent excluding VAT at low volume is not the cheapest in this market, and only falls to 2.5 percent once you are turning over R80 000 a month.

Yoco

The sensible default for small South African merchants taking cards. Once monthly card turnover becomes substantial, get a quote from a bank acquirer and compare properly.

iKhokha

The right answer for a small South African trader with uneven months, who wants no fixed cost and a person on the phone at night. If your card turnover is steady and substantial, compare the blended rate against the alternatives before you commit, because the rate rather than the rental is where the money goes.