Fin24

Shop online with your debit card

2012-07-12 16:27

Johannesburg - Online shopping has broadened the horizons of debit card holders, with credit cards no longer being the sole method of payment when shopping online, the Star reports.

Only 8 million credit cards circulate in South Africa compared to 35.2 million debit cards last year, according to a Euromonitor International study. Euromonitor International is a company specialising in strategy research for consumer markets.

Mark Chirnside, CEO of PayU, an online and mobile payment service provider that processes over 60% of the total value of e-commerce transactions in SA, said it is about time debit cards were added to the online mix.

“This method of payment clearly addresses a huge need in the market.

"We know that only 6.25% of South Africans have a credit card and that, by comparison, the use of smartphones and ordinary cellphones are growing at a phenomenal pace in Africa."

“This combination of a mobile payment solution allowing for alternative payment methods is just another way PayU is ensuring an on-trend approach to the e-commerce environment,” he said.

Called PayD, pronounced “paid”, the new payment solution enables customers to make debit card payments through the mobile payment solution MasterCard Mobile.

MasterCard, Visa and Maestro card holders can use their pin-based debit cards issued by Absa, Nedbank and Standard Bank, and a cellphone on the MTN or Vodacom network to pay for online purchases.

“The key feature is that it enables debit card holders to make secure online purchases,” said Chirnside.

PayD has over 230 online merchants, including 1Time Airlines, MTN, Vodacom, TakeAlot, Debonairs Pizza, Greyhound and Holiday Tours, said PayD spokesperson Dave Parratt.

“It is still early, but about 150 000 people have used the system, so it is taking off,” he said.

To make an online purchase using MastercCard Mobile, a user can select the MasterCard Mobile payment option on a participating e-commerce site.

In order to make a purchase, first time users of MasterCard Mobile will have to register their payment card of choice.

Card holders will have to enter their pin-based MasterCard, Maestro or Visa debit card number, the expiry date of the card (if available) and the account type (current, savings or credit). A cellphone number is also required.

Once registered, the user's cellphone number is used to initiate subsequent payments. Authorisation of payments is done by entering the card holder’s debit card pin on their cellphone.

Furthermore, the PayD method addresses the issue of insecurity still experienced by many online shoppers.

“This method requires a pin, and not just a card number to authorise each transaction, and, with a further link to your cellphone number, security risks are significantly reduced,” said Chirnside.

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Comments
  • mathilda.williams.1 - 2012-07-12 16:58

    Been using my debit card for probably 8 years already, to shop online. This must only be a SA'an thing, that the customer was not allowed to shop online using debit card. I don't see why on earth not, if the money's in the account, how can there be a problem?

      bernpm - 2012-07-24 15:12

      Very similar to this stupid petrol card thing.... Luckily, petrol stations are beginning to be wise...or was it the Soccer World Cup visitors forcing them to make the move.

  • bomb.technician.5 - 2012-07-12 17:14

    Nothing new, SA just years behind developed countries.

  • rplescia - 2012-07-12 17:15

    Lag... 10+ years behind!

  • tshepoya.bamagoro - 2012-07-12 17:19

    Thats great news but how soon

  • wynand.bothma - 2012-07-12 17:23

    No It has been available in SA for quite some time now. PayU is just getting some PR from Naspers... and they are extremely expensive to use for merchants!

      stompies.hattingh.5 - 2012-07-12 17:28

      Indeed!!

  • John Doeslough - 2012-07-12 17:24

    How is this news? I have been using my debit card for the last year to make online purchases. I thought it was common knowledge that if you have a Visa/MasterCard you could do this

  • pierre.durandt.98 - 2012-07-12 17:26

    You can get a Mastercard prepaid card now that allows all the benefits of a credit card but just without a credit facility. It's called a Procard. Email sales@wozacom.co.za for more info

  • rayno.grever - 2012-07-12 17:48

    Capitec Bank are the market leaders with their new Debit Master Card. Zero credit card fraud cases thanks to their security token system. They have the lowest bank charges bar none. I switched banks recently and saving R 2 500 pa on bank charges alone

  • lulama - 2012-07-12 18:32

    We have been having it for a while now. PayD just copied someone's idea tha's all.

  • robert.luand - 2012-07-16 14:21

    I depend a lot on shopping online and have always been concerned about the risk of exposing my credit card information. And the methods to prevent credit card fraud keep getting more complex, but the truth is it’s as simple as companies asking users to telesign in to complete a transaction by using 2FA. I am not sure why not all companies use this, in fact I feel suspicious when an online store doesn't ask me to telesign in, now it just feels as if they are not offering enough protection.

  • rodger.warren.5 - 2012-10-30 15:37

    I USED MY DEBIT CARD TO PURCHASE ITEMS FROM YELLOWBOX.CO.ZA IN DECEMBER LAST YEAR ALL READY. VERY EASY TO USE AND I SEE THE OTHER RETAILERS ALSO HAVE THE DEBIT CARD FACILITY NOW. I HAVE PURCHASED ITEMS ON BUDGET FROM YELLOWBOX.CO.ZA WITH MY CREDIT CARD JUST LIKE IN A SHOP. I DONT GO TO SHOP ANY MORE.

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