Online shopping to rise with prepaid cards
Fin24 - Feb 29th 2012, 07:40
Johannesburg - South Africans who don't have access to a credit card can now shop online by using a single-use virtual prepaid card system called 1-2-Pay-Online.
Developed by Triloq Payment Services, a World of Avatar company, the system was created to remove barriers for would-be online shoppers and to increase online sales across the board.
The 1-2-Pay-Online system was created in collaboration with MasterCard and Standard Bank.
While only 7.8 million South Africans own credit cards, the online shopping market increased by over 30% in 2011.
According to MasterCard's Online Shopping Behaviour study, 58% of South Africans who have access to the internet are shopping online, an increase from two years ago when it was at 44%, and last year when it was at 53%.
In 2009, 5.3 million South Africans were online and in 2011, the number increased to 6.8 million, a growth of 28% over two years.
Veeren Naidoo, CEO of Triloq Payment Services, said the imminent introduction of additional broadband spectrum, wider access to mobile and PC-based internet would increase the potential of online shopping tremendously. This would in turn increase the value and potential of virtual prepaid card payments.
"Our prepaid cards allow customers to create a virtual prepaid card, which has the same functionality as a normal bank-issued card, so that they are able to buy goods on websites that accept credit and/or debit cards," he said.
According to Anna Jones, general manager MasterCard Worldwide, online shopping has come a long way in southern Africa.
"With access to the internet becoming easier and more cost effective, the overall online shopping experience is viewed positively and people are gaining trust in online security," she said.
In order to eliminate online fraud, the virtual prepaid card produced by the system can only be used for one transaction. Funds left over from the online purchase are transferred back to the customer, who is able to create a new virtual prepaid card for additional purchases.
The 1-2-Pay-Online system provides a safer environment for customers to shop online as each time a customer makes a purchase, a new 1-2-Pay-Online card number is used, limiting the possibility of fraud.
Jones said payment solutions such as the virtual prepaid online shopping card from 1-2-Pay-Online would give more people access to the convenience of online shopping.
The next logical step according to Naidoo is allowing users to create virtual prepaid cards from their cellphones, "which we will launch shortly".
Majority of SA online shopping is done at the office
18/05/2018 - 14:48
More men buy goods online than women in SA and peak shopping time happens during working hours.
Spree App selected as Apple ‘App of the Day’ - A first for SA ecommerce
26/04/2018 - 09:55
In a first for fashion ecommerce in South Africa, a team of editors at Apple has selected the Spree App as App of the Day.
Spree launches shoppable community platform, #SpreeGallery
06/04/2018 - 11:32
Online fashion retailer Spree has launched #SpreeGallery – a new social shopping hub that invites customers to share images of themselves wearing products bought on Spree. Users can submit their pictures via Twitter and Instagram, using #spreecoza or #spreegallery, or tagging @spreecoza.
Mobile commerce on the rise in SA
04/04/2018 - 10:46
Online shopping is on the rise in South Africa. PayPal recently released data about mobile phone usage and mobile eCommerce at the Seamless Africa Conference in Cape Town last month. The research revealed South Africans spent R37.1 billion shopping online in 2016, an increase of nearly 30% from the previous year.
Spree forecasts exponential growth curve ahead for online retail in SA
04/04/2018 - 09:29
After many years hovering around the 1% mark, Spree predicts online shopping’s share of total retail sales in South Africa will increase exponentially over the next three years, rising to about 4% by 2021.