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Kuda Bank Introduces SoftPoS, Enabling Card Payments on Smartphones and Discontinues Free Transfers

The SoftPoS feature is expected to provide convenience for small business owners and enable more financial inclusion in Nigeria, while the end of free transfers marks a shift in Kuda Bank's business model.

Kuda Bank, Nigeria’s first digital bank, has unveiled a new feature on its Kuda Business app that allows users to accept contactless card payments using their smartphones or tablets. The feature, called SoftPoS, turns users’ devices into secure payment terminals or Point of Sale (PoS) machines, providing a convenient way for small business owners to accept payments.

The SoftPoS feature is expected to bring more convenience and flexibility to small businesses that need to accept card payments without investing in expensive Point of Sale (PoS) hardware. With SoftPoS, Kuda Bank customers can accept payments using either a plastic card or a virtual card on their smartphones or tablets.In addition to the SoftPoS feature, Kuda Bank has also introduced a Sales Mode feature that allows users to generate payment links for customers to make payments online or via social media platforms. The Kuda Payroll feature, on the other hand, allows businesses to pay their employees directly from their Kuda Business account.

However, Kuda Bank also announced that it will be ending its 25 free monthly transfers to other banks starting from March 17, 2023. Instead, the bank will charge a flat fee of N10 per transfer, which it claims will still allow customers to save up to N15,000 annually. This move has been met with mixed reactions from customers, with some expressing disappointment while others understand the need for the bank to adjust its business model.

Kuda Bank, founded in 2019, has quickly gained popularity among Nigerians due to its user-friendly mobile app and zero charges on most banking transactions. The digital bank has raised millions of dollars in funding and has plans to expand into other African countries in the coming years.

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