Why Capital Software, Halo Dot and Nedbank are Using Tap on Phone Technology to Revolutionise Mandate Authentication

For 13 years, Chris has started every Monday morning in the same boardroom sitting next to his boss, coffee in hand and plans on the table.

But this Monday is different. The table is empty. He is being retrenched.

Morning after morning he lies awake starting at the ceiling with one thought - I have failed my family.

Then one morning, the answer hits him. He finally has a way forward.

Last year, a cousin asked him for a small loan to cover school fees. How many others were just like her?

Using his payout, he gets moving and launches a microlending business. He is thrilled with building something of his own. He wouldn't just be lending; he would be helping people fill their financial gaps.

But regardless of how hard he hustles; the challenges are harder. He finds payment devices and their maintenance costly. He is overwhelmed and burdened by microlending compliance, licensing, and fees.

Cash flow becomes a nightmare. Customers agree in the moment and then don't follow through with payments, change bank accounts, or dispute debit orders.

As soon as his business has begun so its sentenced to end, and with it, his dream.

Defeated, Chris decides to settle for a job with less potential and less pay. A small salary is better than no salary.

The Vision

Chris may be fictional, but his challenges are real - especially when it comes to getting paid.

Traditional debit orders are outdated. Customers can dispute them, cancel them, or simply empty their accounts before payments go through.

For business owners, this means wasted time, lost revenue and frustration. For customers, debit orders come with a risk of fraud. But DebiCheck changes this.

DebiCheck requires customers to authorise payments directly with their bank at the moment of sign up. This gives customers control over their bank accounts, prevents unauthorised debit orders and protects them against financial loss.

There are delayed DebiChecks, where a person has to approve the debit order. There are also real-time DebiChecks via a banking app, online banking USSD, branch or contact centres.

Delayed decisions can mean loss of sales. But real-time decisions close sales and make fast payments possible.

But what if DebiCheck could go further? Businesses move fast - payment processes should too. Imagine Chris authenticating a DebitCheck mandate instantly, just by having customers tap their card on his phone.

This wouldn't only benefit businesses; it would benefit their customers who can quickly and conveniently undertake DebiChecks.

Nedbank saw the future. With a commitment to driving innovation and financial inclusion, the bank sought to empower businesses with seamless, compliant and efficient payment solutions.

The Challenge

Nedbank partnered with Halo Dot and together they brought DebiCheck TT3 Mandate Authentication via Tap on Phone to life. Nedbank is the enabling bank offering the solution, while Halo Dot developed the revolutionary Tap on Phone technology. The two companies worked together before, creating the first SoftPOS solution in Africa.

Capital Software saw the potential of TT3 Mandate Authentication via Tap on Phone. Recognising the game-changing impact, it pushed to bring the solution to market first, ensuring businesses across industries could benefit.

The company is a Third-Party Payments Processor (TPPP) and Systems Operator (SO). Since 1968, Capital Software has built products that cover the spectrum of business solutions across industries.

Capital Software also enables microlending and debt collecting businesses. Its customers' businesses are burdened with compliance expenses, licenses and complex terminology prompting Capital Software to create a "business in a box" app called SlicPay.

Through the SlicPay solution, Capital Software empowers microlending and debt-collecting businesses with built-in compliance, seamless reconciliation, and automataed collections, eliminating the need for costly licenses and complex regulatory navigation.

The company was determined to revolutionise the DebiCheck experience and remove any barriers to business, everything from hardware device maintenance to delayed payments.

Integrating a real-time, DebiCheck Mandate Authentication via Tap on Phone solution across multiple banks was challenging but Capital Software wouldn't give up.

"If someone says that it cannot be done, Capital Software says hell yes, we will get it done," explains Christel De Bruin, Director of Capital Software.

Like any innovation, it came with its own challenges, but together, Nedbank and Halo Dot worked tirelessly with Capital Software and are proud to bring this first to market solution to life.

The First to Market Solution

The three companies ensured the solution built into SlicPay worked across all South African banks, making it accessible to qualifying businesses.

Halo Dot created the powerful functionality for the SlicPay app that allowed its businesses to seamlessly process DebiCheck TT3 Mandate Authentication transactions with a tap, on their phone.

Through their extensive experience and track record of achieving rigorous payment certifications, Halo Dot built the solution with bank-grade security, scalability and reliability.

When a customer wants to authenticate a mandate, they simply tap their card on a compatible smartphone and enter their PIN. The process is seamless. Halo Dot's technology is plugged into the SlicPay app and creates an intuitive experience.

Halo Dot handles all backend bank verifiactions through Nedbank, ensuring a secure and compliant transaction

Through the parties' tenacity, a successful pilot was undertaken, enabling Capital Software to launch the industry-first market innovation of DebiCheck TT3 Mandate Authentication via Tap on Phone, revolutionising payments for both businesses and their customers.

Capital Software decided to do something different and offer DebiCheck TT3 Mandate Authentication via Tap on Phone as a percentage fee to its customers, making it affordable and its pricing transparent.

Now, every user of SlicPay can facilitate DebiCheck TT3 Mandate Authentication via Tap on Phone using what they rely on most: their cell phone.

Aligning with Nedbank's commitment to empowering businesses, the solution supports financial inclusion. Every DebiCheck qualifying and approved business regardless of size and industry can benefit from secured payments, enabling every end-user/customer convenient access to a DebiCheck TT3 Mandate Authentication service. Whether its individuals in rural areas signing up for funeral policies when a provider travels to them or fitness fanatics signing up for gym contracts between push ups, end users can have access to convenient, secure DebiCheck Mandate Authentication transactions via Tap on Phone (through an approved DebiCheck business).

"Nedbank, having previously collaborated with Halo Dot to introduce the first Tap on Phone solution in Africa, has enhanced this capability to support a new use case for TT3 Mandate Authentication. We're extremely excited as this development not only addresses our clients' challenges but also provides end users with a more convenient solution. It aligns perfectly with our digital-first and first-in-digital aspirations, emphasising our commitment to being human-centric when our clients need it most. Working with Capital Software to address and alleviate market challenges has been an inspirational journey. We are proud to be at the forefront of collaborating with clients and technology providers to bring innovative solutions to market", says Chipo Mushwana, Executive: Emerging Innovation and Payments at Nedbank.

The Results

Capital Software had pioneered the way forward. The success of its pilot has garnered interest across industries.

Having opened the doors as proof that this solution is possible, companies can engage Nedbank for DebiCheck approval and collaborate with Halo Dot to integrate the technology into their business.

Businesses looking for a ready-to-launch solution can partner directly with Capital Software. With the technology fully developed and market-proven, companies can leverage Capital Software's suite of financial products and white label their solution to authenticate DebiCheck Mandates easily.

"TT3 Mandate Authentication via Tap on Phone shows not only the power of smart innovation, but the impact of persistence to bring it to market has on businesses and their clients. We are thrilled to have been part of this journey and look forward to implementing this solution across industries," says Jonathan Jacobs, Head of Product and Operations at Halo Dot.

Rewriting the Story

With first-to-market TT3 Mandate Authentication via Tap on Phone seamlessly integrated into SlicPay, powered by Halo Dot, brought to life through Nedbank’s drive for business empowerment, Chris now has a complete business solution in the palm of his hand.

No more late payments. No more uncertainty.

In real time, Chris can issue a loan, and customers can instantly and securely authenticate their mandate simply by tapping their card on his phone.

Whether an SME on the move, or as a massive retailer, every DebiCheck approved business can facilitate DebiCheck TT3 Mandate Authentication via Tap on Phone, creating frictionless financial empowerment.

In the end, the solution isn’t just about transactions. It’s about people, inclusion and customer convenience. It’s about keeping businesses in motion.