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Johnny Daniels
Johnny Daniels

Micro Merchant Support Download: A Guide to PrimeRx Customer Resources



This enables merchants to accept card payments on smartphones and tablets, without the need to purchase a separate card reader. Instead, the merchant only needs to download a software application onto their mobile device.


This technology is a game-changer, especially for small and micro-merchants who are often slow to adopt new payments technologies, saving them the cost of purchasing devices whose sole purpose is to accept payments, and offering more robust security. As such, it is expected that PIN on Glass will encourage more merchants to accept cards and digital payments.




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Newer, more disruptive models that are platform-enabled have emerged, centered around MSMEs. These platform providers help retailers overcome several challenges, including inconsistent inventory availability, logistics and transportation issues, limited access to financial services, and unreliable market pricing trends. This model is similar in operations to the traditional supply chain, but leverages technology to bring merchants online, many for the first time, and serve as a broker between them and the distribution chain. By digitizing the supply chain through the emerging platforms, retailers can order goods at their own convenience and have access to additional services that can help scale up their businesses. Specifically, platform providers offer factory-to-retail distribution of FMCG goods, digitize the chain from distributors to retailers, and provide additional technology-driven value-added services for small and micro merchants. They may provide logistics services to merchants directly or via partnerships with independent logistics providers. Platform providers also utilize data generated on their systems to assess the creditworthiness of merchants and use this to provide different forms of stock financing on- or off-balance sheet.


Running a scalable retail business can be very challenging for small and micro merchants with limited or no access to business finance. According to the International Finance Corporation, the funding gap for MSMEs amounts to $5.2 trillion every year, leaving many small and micro merchants to often rely on informal means to expand their business operations and meet the needs of consumers. Merchants typically have fluctuations in sales, but they often experience higher than normal sales at certain periods of the year, like festive seasons, leaving them determined to have more stock in their shops to meet demand. Unfortunately, many do not have the financial resources to either increase stock, improve product variety, or introduce brands that are in demand. In an ideal situation, these merchants should be able to apply for business loans from financial institutions, but this is not the case, as this segment is often considered unattractive and high risk to financial services providers. They should also be able to approach distributors to sell products to them on credit, but distributors only sell goods on credit to a tiny percentage of merchants, often based on long-term tested and trusted business relationships and other externalities. Exacerbating the situation is the fact that merchants have heavily manual operations which barely generate data that can showcase their financial positions or help them build credit profiles.


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Providing merchants at the end of the retail chain with financing requires significant digitization of processes and data. This level of digitization means that the finance arrangement needs to be supported by the right technology, which allows actors to consolidate and share real-time data produced by the movement of money and goods in the supply chain to facilitate coordinated decision-making and enable retailer financing. This requires bringing small and micro merchants online (some for the first time) and working with them through a sustained and evolutionary journey of digitizing key aspects of the business, from stock ordering to inventory management and payment services.


Extending financing and other services to small-scale merchants in the FMCG supply chain is a win-win proposition for all actors in the value chain. Beyond the short-term benefit of providing reliable working capital to merchants who typically are unable to get it affordably because they lack collateral, guarantees, and other requirements, it also helps merchants build stronger business credit profiles, improve their relationships with their suppliers (distributors), enable them to have more stable cash flows, and help them remain focused on their personal and business goals. Because many micro and small businesses often mix business and personal finance, supply chain finance gives them a clearer picture of their business obligations. For distributors, SCF enables them to better control their cash flow, have faster access to payments, and build stronger relationships with their downline merchants.


Given its nature and structure, it poses several limitations as funding is accessible by only a select group of actors (key distributors, tiered distributors, and key accounts), while small and micro merchants are typically excluded and therefore not able to benefit despite being a key contributor to sales and the entire ecosystem.


The platform-enabled SCF has tackled some of the issues of the traditional SCF, but they are not without their challenges. Apart from the models slowly gaining traction in Nigeria and Ghana, these two models face much deeper structural and economic challenges that threaten their scalability. Many small and micro merchants being served have low digital literacy skills, and there continues to be a heavy reliance on field agents to support customer onboarding, proactive engagement, and support. Many platform providers have also switched from native apps to WhatsApp bots in order to be able to serve these merchants.


The introduction of platform-enabled supply chain models has provided the opportunity to rethink how supply chain finance for the lower end of the retail chain can be done. Platform providers have continued to explore different methodologies and approaches with varying degrees of success, but it is clear that they are beginning to reach into and address some of the key pain points of small and micro merchants. While there has been progress, there are a few pertinent factors that platform-enabled participants need to consider in building and scaling their models, which are addressed in subsequent sections of this report.


Platform providers either provide lending on balance sheets or drive a FSP partnership. While we have established that the former is restrictive based on the risk they can take on their balance sheet, most FSP partnerships have also been with smaller MFIs and fintechs, again limiting the extent to which credit can be provided. Mainstream commercial banks have deep pockets and could easily drive lending scale in these models, but they are reluctant as they see small and micro merchants as very risky with a high cost to acquire and serve.


Reducing the cost to acquire and serve merchants. There continues to be a heavy reliance on field agents by platform providers to acquire customers from the open market and use of same to drive customer engagement and support. Actors can collaborate and reduce onboarding costs by potentially increasing referrals from partner FMCG companies and distributors. As the platform technology matures and merchants become more comfortable with the platform, this can be used to drive and address basic customer interactions, leading to a leaner, more efficient agent structure and an overall reduction in operational expenses.


FSPs in Ethiopia will see this as a new and necessary journey, one taken with great caution, and it may require additional technical assistance and other support to update existing credit policies, processes, and operational systems to support SCF products. For example, FSPs will need to learn how to integrate sales order history and supplementary data on the merchant into their credit assessment models.


Supply chain finance can be an effective tool to close the credit gap faced by small and micro merchants and to address other operational and market challenges. When done right, SCF can provide the millions of small merchants in the chain financial security and reduce the percentage of the working poor in Africa, leading to a more sustainable livelihood for the rapidly growing population of women and youth on the continent.


To use these readers with our VPOS v2 application they must be purchased through our partner POS Portal.Note: If you are currently using Wells Fargo or PaySafe as your merchant service provider, please contact their support to get further information on obtaining a card reader. Back to TopQ: Is it possible to update my reader?A: We now allow remote updates for our readers in VPOS. Each time you log into VPOS we will check and see if an update is available. If an update is available, it can take up to 15 minutes for the card reader to download and install them to the reader. You can disable the update check in the VPOS settings page. Note: Reader updates are currently only available for BBPOS or Anywhere Commerce readers. Back to TopQ: What processor can be used with VPOS?A: You will need to be on a supported EMV processor to run EMV transactions. A list of supported processors are found on the EMV FAQs. If you are using a processor that does not support EMV you can still use a card reader to run swipe transactions. In the VPOS Settings page you can disable EMV Reader, once this is disabled it will run in swipe only mode for any non-EMV supported processor. Back to TopQ: What settings are available in VPOS?A: You will be able to make the following changes in the VPOS Settings page:


Back to TopQ: How do I update to the latest version of the VPOS application?A: When logging into the VPOS application, if a new update is available merchants will be prompted to download the latest version of the application. Please take these steps to complete the installation:


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