Visa International has announced that a major launch of the Chip Off-line Pre-Authorised Card (COPAC) is to take place in Ghana this year.
Standard Chartered Bank Ghana plans to issue up to 60,000 cards under the name "Visa Horizon" over the next few months. Further launches will be considered for other African markets where Standard Chartered maintains a significant consumer banking presence.
The roll out of Visa Horizon in Ghana follows a pilot of the product in Russia. The agreement with Standard Chartered Bank signifies the official product launch and means the card will now be added to Visa`s portfolio of global products.
"Standard Chartered analysed a range of different options to address the payment card needs of African markets," said Simon Morris, Regional Head for Consumer Banking Africa. "Bank customers are currently able to use a local ATM card to access cash but not for purchases at the point-of-sale.
Visa Horizon enables us to offer our customers a card that can be used to access cash and make purchases at merchant locations. This provides greater convenience and flexibility, but does not need to rely on an extensive and costly telecommunications network for secure authorisations.
Standard Chartered Bank is committed to positioning itself at the forefront of technological development. This enables the Bank to deliver to its customers a world-class service wherever they may choose to bank with us. The Visa Horizon product will give us that capability both in Ghana and else where in Africa."
Tertius Steyl, head of relationship card initiatives, Visa Southern Africa says, "Standard Chartered Bank`s decision to issue Visa Horizon cards in Africa is not only a major endorsement of the product but also a tribute to the ability of chip technology to overcome traditional infrastructure weaknesses.
It shows how this chip-based product can provide a secure, off-line payment solution which addresses many of the payment system challenges in emerging markets. Now that we have moved beyond pilot testing, we expect to see roll outs in many other markets in Asia and in Central and Eastern Europe."
Ghana represents one of Standard Chartered Bank`s key markets. The introduction of an off-line chip card will help to create an interoperable domestic payment system in Ghana and represents the first internationally branded payment card in the country.
Chip technology used on a COPAC card enables payment information to be stored and processed in a secure and efficient manner. "Customers open a debit or credit account with a bank and request a pre-authorised amount of purchasing power. This pre-authorised spending power is stored in the chip on the customer`s PIN-protected card.
Once the pre-authorised amount has been established, the bank`s system automatically sets up a shadow account where the pre-authorised funds are stored. Funds are deducted from the shadow account when the customer`s cash and purchase transactions have cleared the system. As customers use their card to make purchases or withdraw cash, they can continually replenish the spending power on their card up to the available balance in their bank account," adds Steyl.
As a major international bank, Standard Chartered focuses its activities on Asia, Africa, the Middle East, and Latin America. By combining regional strengths with a global network, Standard Chartered aims to be the bank of choice and the leading international bank in emerging markets. Its objectives are to provide innovative products, supported by quality delivery systems and excellent customer service; to train and motivate staff; to exercise community responsibility, to achieve sustained earnings growth, and to continue to enhance shareholder value.
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