Predictable payments, transparent pricing and real-time financial insights are becoming essential tools for South Africa’s entrepreneurs, writes FNB Merchant Services CEO John Mlangeni.
South Africa’s small businesses are navigating an increasingly uncertain economic environment, where global events, currency volatility and rapid technological change continue to reshape the way companies operate. Yet, according to John Mlangeni, CEO of FNB Merchant Services, one of the biggest challenges facing entrepreneurs is far closer to home: the uncertainty of getting paid.
In an opinion piece, Mlangeni argues that while businesses rely on sales to generate revenue, delayed payments and unpredictable cash flow often leave entrepreneurs unable to access the money they have already earned when they need it most.
“Payments are what make businesses thrive,” he says. “Yet for too many entrepreneurs, sales alone no longer guarantee money in the bank when it is needed most.”
When Sales Don’t Immediately Become Cash
For many small businesses, particularly high-volume retailers such as spaza shops, sales may be strong, but payment delays can create significant operational challenges.
Customers may purchase goods using bank cards throughout the day, yet the proceeds from those transactions may only reflect in the business owner’s account several days later. During that waiting period, suppliers still expect payment, rent remains due, fuel must be purchased and stock needs to be replenished.
According to Mlangeni, these delays can place otherwise healthy businesses under severe financial strain.
“Debit orders don’t wait – and neither do suppliers,” he notes. “Payment tomorrow can matter more than a sale today.”
He warns that, in some cases, businesses close not because they fail to generate sales, but because they lack the cash flow certainty needed to continue operating.
CEO of FNB Merchant Services, John Mlangeni. Photo supplied.
Cash Flow Confidence Drives Growth
Beyond day-to-day survival, predictable payments also influence whether businesses are able to expand.
When entrepreneurs know exactly when funds will be available, they can confidently purchase additional stock, invest in growth opportunities and even consider applying for business finance.
However, uncertainty around payment timing often forces business owners to focus solely on survival rather than long-term growth.
Equally problematic, says Mlangeni, are hidden costs and unclear payment structures. Many businesses lose money through what he describes as “invisible leakage”—unexpected fees, confusing pricing structures and settlement timelines that are not clearly communicated.
Transparent payment fees, he argues, allow entrepreneurs to understand exactly what they are paying, what they are earning and how increasing sales will affect their costs.
That visibility ultimately leads to stronger financial planning and better business decisions.
Technology Is Transforming Business Payments
Modern payment technology is helping to address many of these challenges.
According to Mlangeni, today’s point-of-sale (POS) devices have evolved well beyond simply processing card payments. They now provide business owners with real-time visibility into cash flow, stock movement and customer payment behaviour.
Rather than serving as a basic card machine, the latest generation of POS solutions functions as a business management tool, giving entrepreneurs immediate access to valuable operational insights.
This information enables business owners to monitor which products are selling, anticipate cash inflows and better manage inventory.
Importantly, transaction history can also strengthen a business’s ability to access funding.
Instead of relying solely on traditional paperwork, lenders can increasingly use verified transaction data to assess how a business performs on a day-to-day basis, creating new opportunities for entrepreneurs to secure working capital that reflects their actual trading activity.
Simplicity Creates Opportunity
Mlangeni believes that reducing complexity is key to helping South Africa’s small businesses succeed.
Reliable settlement times, transparent pricing and practical financial insights provide entrepreneurs with the certainty needed to keep trading, particularly during busy periods when payment delays can have significant consequences.
Rather than adding more features or increasingly complicated financial products, he argues that businesses simply need payment systems that are predictable, easy to understand and built around their operational realities.
“When entrepreneurs know when they will be paid, what it will cost them, and how their business is truly performing, they can focus on what matters most: serving customers, supporting the communities they operate in and building a more resilient business.”
As South Africa’s entrepreneurial sector continues to play a vital role in economic growth and job creation, ensuring payment certainty may prove just as important as generating sales themselves. For many small businesses, predictable cash flow is not simply a financial convenience—it is the foundation on which sustainable growth is built.