In the fast-paced and ever-evolving world of event management, iTickets has been a constant innovator since its inception in 2006. The South African ticketing platform has built a sterling reputation not just as a place to sell tickets, but as a comprehensive event partner. They offer a full suite of services, from an intuitive ecommerce platform for ticket sales to on-site validation equipment and real-time sales reporting. Their philosophy is centred on empowering event organisers with the tools they need to succeed.
For years, iTickets has been dedicated to streamlining the entire event lifecycle. Their commitment to building strategic partnerships and using a data-driven approach has allowed them to help organisers expand their reach and enhance brand recognition, ensuring every event is a resounding success. However, as the business grew, a specific challenge emerged from their traditional business model.
The event industry’s cash flow problem
The financial landscape of event planning is unique. While ticket sales generate revenue, a significant portion of the income is often needed upfront to cover essential costs. Event organisers need capital for everything from securing the perfect venue to booking artists, setting up marketing campaigns and hiring staff. iTickets’ standard procedure was to collect funds from ticket sales and pay out the event income to organisers after the event’s completion, after their commission had been deducted.
While this system worked for many, it presented a significant hurdle for those organisers who couldn’t secure sponsorships or bridge the gap until the event concluded. They needed a fintech solution that would provide them with immediate access to their funds for crucial cash flow management.
“Some promoters need to receive funds immediately for their events, like in instances where they need cash flow to secure a venue or if they are unable to secure event sponsorships,” said Albertus Potgieter, the Managing Director of iTickets.
This pain point was becoming a barrier to growth, not just for the organisers, but for iTickets itself. They required a partner that could offer a flexible and dynamic online payment gateway. This partner needed to be more than just a payment processor; they needed to be a strategic ally capable of supporting a complex and innovative financial flow.
Implementing Payfast’s Split Payments for events
iTickets had already integrated with Payfast in 2018 to offer their customers a wider array of payment options, including Instant EFT and card payments. The partnership was strong, built on a shared commitment to providing seamless and secure transactions. It was this existing trust that led iTickets to approach Payfast with their unique challenge.
Payfast’s Split Payments feature was the perfect fit. Instead of a single transaction going to a single account, Split Payments allows for a single transaction to be split and paid out to multiple beneficiaries instantly. With a custom integration, iTickets was able to configure a groundbreaking solution. Now, when a customer purchases a ticket on the iTickets platform, the payment is instantly split. iTickets’ commission is immediately paid out to their account, and the remaining portion of the ticket price is deposited directly into the event organiser’s account.
This was a game-changer for the business. “With Split Payments every time a ticket is purchased, we instantly receive our portion of the event fees and selected event organisers receive their necessary cash flow,” said Albertus. “They are empowered to make event related payments on time and our financial admin has been drastically lightened, so it’s a win-win situation for everyone.”
Business growth through a smart payment solution
The adoption of Payfast’s Split Payments has not only solved a major challenge but has also propelled iTickets into a new era of business growth and client satisfaction. By addressing the critical issue of cash flow, iTickets has positioned itself as an indispensable partner for event organisers across South Africa.
This partnership has led to several key outcomes:
- Empowered event organisers: Event organisers no longer have to wait for funds, allowing them to confidently plan and execute their events, knowing they have the capital available when they need it. This financial agility fosters a more resilient and vibrant event industry.
- Operational efficiency: For iTickets, the automated splitting of payments has dramatically reduced the time and effort spent on financial administration. The manual process of collecting all funds and then paying out organisers after the event has been replaced with a real-time, hands-off solution, allowing their team to focus on core business functions and strategic growth.
- Strengthened client relationships: The ability to offer this innovative cash-flow solution has deepened the trust and loyalty of iTickets’ clients. Organisers now see iTickets as a true strategic partner, one that understands their business needs and provides solutions that directly contribute to their success.
- Continued Innovation: The successful implementation of Split Payments demonstrates iTickets’ agility and willingness to innovate. They are continuously investigating new payment options and tools to ensure they remain at the forefront of the ticketing industry, always prioritising solutions that are most user-friendly and effective for their clients.
As Payfast continues to evolve its platform, focusing on concepts like unified commerce and financial inclusion, the partnership with iTickets serves as a powerful example of how a flexible payment solution can revolutionise a business model. It proves that by working together, industry players can create solutions that not only solve a problem but also foster growth and success for all involved.
To find out how Payfast’s Split Payments solution can help your business split third party payments, reach out to our Sales Team.