South Africans who do not have a debit or credit card can now shop online using a virtual prepaid card system, introduced yesterday by World of Avatar company Triloq Payment Services.
Developed in collaboration with MasterCard and Standard Bank, the single-use virtual system, 1-2-Pay-Online, allows customers to shop at any online store that accepts credit and/or debit cards.
According to a recent Euromonitor International report, only 7.8 million South Africans own credit cards, while the online shopping market increased by over 30% last year. In light of this, Triloq Payment Services says the virtual prepaid card aims to “remove barriers for would-be online shoppers and increase online sales across the board”.
Online activity
MasterCard's 'Online Shopping Behaviour' study shows that 58% of South Africans who have access to the Internet currently shop online. This is an increase of 14% over a period of two years and is up 5% since last year, which saw 53% of Internet users venturing into the world of virtual shopping.
Internet World Stats reveals that in 2009, 5.3 million South Africans were online. Last year that number increased to 6.8 million, a growth of 28% over a two-year period.
Triloq CEO Veeren Naidoo says additional broadband spectrum and wider access to mobile and PC-based Internet will increase the potential of online shopping “tremendously”. This in turn, says Naidoo, will increase the value and potential of virtual prepaid card payments, which he describes as “the way of the future”.
The next step
MasterCard Worldwide SA GM Anna Jones says online shopping has come a long way in SA, with people gaining trust in online security. “Access to the Internet is becoming easier and more cost-effective [and] the overall shopping experience is viewed positively. Payment solutions such as the virtual prepaid online shopping card from 1-2-Pay-Online will give more people access to the convenience of online shopping.”
Naidoo says the next logical step in the process of a virtual prepaid online shopping option would be to allow users to create virtual prepaid cards from their cellphones, a functionality that will be “launched shortly”.
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