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Net1 launches mobile payment app in SA

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 18 Feb 2015

Zazoo - previously Net1 Mobile Solutions - has officially made its mobile virtual card (MVC) solution VCPay available for South African consumers.

Previously in a proof of concept phase, in use primarily by Net1's 4 500 employees, VCPay is a mobile application developed around Net1's patented MVC technology, which enables mobile devices to generate virtual MasterCards offline and without access to a mobile phone network.

Users activate VCPay by following an over-the-air registration process and linking the application to a number of funding options, including credit cards, electronic fund transfers and direct top-ups. The application allows users to generate anonymous, unique virtual payment cards that can be used for online purchases, or in brick-and-mortar retailers that accept manual card-not-present payments.

Users can also send the virtual card to remote friends or family via channels such as e-mail, SMS, MMS and WhatsApp. The MVC application also enables customers to purchase directly from app stores.

Zazoo MD Philip Belamant explains, once the MVC has been used to make a purchase, it expires and cannot be used again. "The card generation process occurs offline and does not disclose any personal financial information [and] a single-use MVC is created for a specific amount, making online transacting more secure."

He says the launch of VCPay, which has been available in other international countries for some time already, comes in response to the growth in SA's e-commerce sector.

As part of the launch, Zazoo has teamed up with Microsoft and Cell C to sponsor a R250 VCPay voucher to consumers who purchase the new Microsoft Lumia 535 on a Cell C contract.

The Lumia 535 has been available on Cell C's talk and data contracts since 1 February. Zazoo says an initial batch of the phones will be packaged with the VCPay voucher.

Belamant says VCPay is interoperable, meaning it does not require merchants to change the way in which payments are accepted online.

VCPay joins the likes of SnapScan, FlickPay and Zapper - which took part in what has been called a "land grab" in the mobile payments space last year.

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