Big change for FNB card machines

FNB has introduced an outright purchase model for its point-of-sale (POS) devices, which will allow users to either rent or buy these Speedpoint devices.

The company explained that this new offering aims to cater to the unique needs of businesses, particularly small, medium, and micro-sized enterprises (SMMEs). 

FNB said SMMEs account for just over 30% of the company’s total merchant base, with approximately 25% of SMME merchants processing R0 to R1 million turnover per annum.

“Recognising the fundamental need for businesses to accept payments easily, safely, and securely, FNB has traditionally offered POS devices through a rental model,” it said. 

“However, after carefully evaluating customer needs and the competitive landscape, the bank has decided to expand its offering to include the option for merchants to purchase devices outright.”

FNB Merchant Services’ product and solutions head, Netsai Ngidi, said that larger merchants and enterprises often prefer the rental model, which comes with lifelong warranty and servicing.

However, smaller merchants tend to be more price-sensitive. Therefore, by introducing the outright purchase model, FNB aims to empower businesses to choose the solution that best fits their needs and budget. 

“At FNB, we are happy to satisfy the demand for outright purchase and make it a bit easier for businesses just starting out,” she said.

Merchants can now buy a Speedpoint device on FNB’s eBucks store with either a bank card or eBucks.

If they use eBucks and bank with FNB, the company also throws in free delivery and next-day settlement.

“By allowing our customers to use their own eBucks, we give them additional value as their eBucks can be spent to buy the device, freeing up cash to utilise their cash for other needs,” she said.

The devices available for purchase will be the Speedpoint, which includes a printer, and the Speedee, which comes without a printer. 

The price is R1,999 for the Speedpoint and R699 for the Speedee device.

Merchants who opt for the outright purchase model will benefit from a 12-month warranty on the device in addition to the standard factory warranty. 

During this period, FNB will provide support and address any issues related to the device itself. 

However, the outright purchase model does not include a replacement device during repairs or cover issues resulting from merchant misuse.

Customers renting devices will continue to have access to a warranty valid for the entirety of the rental contract and a replacement device in case of a faulty device, preventing any halt to trading. 

Replacement tally rolls will also be provided for the duration of the rental contract.

“In the next few months, our customers will also be able to purchase the device from the FNB Banking App and Online platforms in our product shop, which houses all products for businesses.” 

“In addition, FNB will be rolling out more sales channels by partnering with leading online and brick-and-mortar stores as well as leveraging its expansive branch network.”

Ngidi clarified that the outright purchase model will be offered in addition to the rental model, which will continue unchanged. 

“With over a million business customers, FNB offers a range of innovative solutions to help merchants accept payments easily, safely, and securely,” she said. 

“FNB’s competitive commission rates and next-day settlement remain key advantages for SMEs, regardless of the chosen model.” 

“Our commitment to understanding and meeting the unique needs of each business drives our continuous efforts to provide flexible and competitive offerings in the market.”