Case Studies, Payments Industry

Kashing is leveraging the Instant Economy to attract SMEs and grow fast

By Modulr on 18 May 2020   •   4 mins read

The two co-founding members at Kashing, a payment facilitator, have over six decades of combined experience in risk management, data protection security and product development. They identified an unattended market in financial services, where businesses were being underserved.

Modulr has helped them tap into this market and achieve significant growth by delivering more powerful payment solutions to SME customers.

How a payment facilitator created a unified payment system

Kashing was founded to provide SMEs in the UK tourism industry, particularly bed and breakfasts, with online and in-store payment solutions. The major banks can't always fulfil the specific requirements of small businesses, so Kashing offers a bespoke and cost-effective alternative.

Customers subscribe to Kashing on a rolling membership basis and receive complete payment solutions across all channels in return. Business owners don’t need to work with multiple providers as Kashing handles all payments within a single, easy-to-use system.

How payment systems are changing

In a highly competitive marketplace, Kashing decided to pivot their services by focusing on payment solutions for unattended point of sale (POS) devices.

Kashing’s hardware allows merchants to transform anything - from pool tables to vending machines - to accept contactless payments.

As part of this shift, Kashing has also changed its business model by replacing the ‘pay as you go’ memberships with fixed five-year contracts.

Using the Instant Economy to create brand loyalty in the payment market

One of the most significant issues the company faced was building brand loyalty with small merchants. In the crowded and competitive payment marketplace, independent retailers often pick payment providers based on price.

Kashing found a unique solution to differentiate their proposition in this competitive market. By installing bespoke hardware into unattended devices, they provided new customers with an incentive to make an upfront investment, which set the foundation for long-lasting relationships.

Customers also benefit from this arrangement, as Kashing’s technology gives them access to the Instant Economy. Rather than having to wait days to empty coin-operated machines, customers could now accept payments instantly and prevent vandals from stealing cash.

Kashing’s technology takes customer service one step further by allowing pub owners to set dynamic prices so they can promote happy hours when footfall is low.

Supercharging bulk payments with Modulr

Although Kashing already had their own payment settlement system up and running, the team was struggling to find a payment provider who could deliver Faster Payments in bulk.

After countless trips to London to meet with corporate banks, the team at Kashing was frustrated by how out of date and out of touch corporate solutions were.

They needed an alternative payment provider which could help them process thousands of small payments every day with minimum fuss, zero downtime and maximum efficiency.

A requirement Modulr could easily fill.

“Modulr has given us the ability to go after a gap we saw in the market. Where before Kashing was poorly served by the established financial services, we’re now able to create an Instant Economy for our customers which gives them a convenient, reliable and fast payment service.” – Karen Rossouw, CEO, Kashing.

Achieving month-on-month growth with fast bulk payments

Since integration, Kashing has seen an impressive month-on-month growth. Unattended Card Turnover in 2019 has grown 45% month-on-month and the number of unattended transactions in 2019 has grown 38% month-on-month.

Before working with Modulr, Kashing typically onboarded five devices a month. Today, they onboard five to ten devices a week. And, over February 2020, Kashing has processed the same amount of payments as they did in 2019.

“Since implementing Modulr, we’ve experienced rapid growth in our customer base. We’re now processing more payments per month than we previously did in an entire year. We knew Modulr was the right payments solution for us, but our initial investment has paid off much quicker than we anticipated.” – Karen Rossouw, CEO, Kashing.

Establishing fast and secure payments with Modulr

Modulr lets Kashing keep customers' money in safe, segregated accounts. The money stays in this account until Kashing is ready to settle with a customer, which might happen on a daily, weekly or monthly basis. 

Holding the funds in a separate account allows Kashing to prevent fraud and check their system against the money in their other banking provider’s account. Once the payment is confirmed, they can release the funds to customers.

This payment system has allowed Kashing to achieve scalable and reliable growth. As Kashing looks to expand into the European market, Modulr is also working to build affordable currency exchange systems to help them scale their business further afield.

With Modulr at its side, Kashing has helped SMEs across the UK to update their POS systems and deliver a better customer experience. The Modulr platform has enabled Kashing to process thousands of payments quickly and efficiently, while keeping operational overheads down.

This means Kashing can continue investing in new technologies and innovative solutions to reshape the world of digital payments and create an Instant Economy for itself and its customers.