Telecom firm DITO and digital wallet GCash have partnered to help micro, small, medium enterprises (MSMEs) with connectivity and a new payment solution.
MSMEs also stand to receive a much lower Merchant Discount Rate (MDR) for every GCash transaction.
New internet bundles are now being offered by DITO specifically to cater to small entrepreneurs.
This will be under the DITO BizBayan WoWFi Optima plans, but GCash is giving additional benefits by including a digital payment system.
DITO Chief Commercial Officer Adel Tamano said, “You get the connectivity, but you also get a payment platform… It empowers them because it’s a complete solution.“
GCash Head of Distributive Trade for MSME Mark Mamaril added, “In this digital economy, they need to be able to carry on their operations more efficiently and that also entails having internet connectivity as well as having the cashless payment solutions available for them.”
Aside from the fast internet connectivity, subscribers of the new plan will also get an exclusive, lower MDR. This merchant rate is usually 1% of every e-wallet payment, but under the new plan it will go down to just 0.6 % which means more savings for businesses.
If card payments is used, the MDR also drops from the current 3.2 percent to 2.8 percent.
“In this type of economy wherein there’s a crisis, inflation is rising, the margins are very important for an MSME,” said Mamaril.
Tamano added, “Think of it as a premium rate, premium meaning mas mababa, a premium rate that GCash for Business is giving to you because of this partnership.”
Small businesses will also get access to GCash SoundPay, an audio confirmation device that tracks customer payments. The device will automatically ‘speak’ once a payment has been made, meaning sellers do not need to take a photo or screenshot of the payment receipt.
The companies are confident that the partnership will push for digital inclusion among small entrepreneurs, some of whom may still be hesitant to go digital. They hope more businesses will go cashless, as this will help the enterprises grow while enticing more customers.
