News24

payD to allow easy SA online payments

2011-07-29 14:44

Cape Town - Online shopping in SA has been given a boost with the introduction of a debit card payment system that promises to make the experience easy and safe.

MTN Mobile Money has launched payD, an e-commerce platform that allows users to make purchases online using bank debit cards.

"payD removes a significant obstacle to e-commerce's mainstream adoption in South Africa - finding a convenient and cost-effective payments mechanism that doesn't require the opening of yet another bank account," the company said.

The system will work in conjunction with a users cellphone when making a payment and it is similar to a transaction at an in-store pay point, the company said.

The move may provide a boost to online retailing which has generally relied on credit cards to make purchases, but in SA, a large section of the population does not have access to them.

Micro-transactions

"On the consumer side, only 3% of our population has credit cards, and this is generally the only way to transact online.

"On the merchant side, transaction costs for credit cards cut deep into margins and this reduces the range of products that e-tailers are able to offer online," said Dave Parratt, head of new business development at MTN Mobile Money.

So-called micro-transactions have been a challenge for the industry in SA and several vendors have offered alternatives to credit card payments for online purchases.

Social network MXit allows users to make purchases with Moola, its own online currency, and recently, international payment system PayPal launched in SA.

The payD system is only available to Nedbank and Standard Bank debit card holders at present and there are hopes that will soon roll out to other banks.

One factor that may limit adoption of the system is the number of retailers.

Currently, the system is available at 77 retailers and one of the biggest brands in 1time airlines.

"payD will make paying for 1time flights even easier. Although we have a wide customer base, not everyone has a credit card with which to purchase their tickets online," said Rodney James, CEO of 1time.


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Comments
  • RobbedZombie - 2011-07-29 14:50

    Big Deal, FNB has made PayPal availible to everybody for years now.

      Xavier - 2011-07-29 16:26

      @robbiezombie What!!!!!fnb has nothng to do with paypal except for the online banking service fnb provides his clients to transfer money to and from their fnb account to their paypal account without using your credit card information. http://mg.co.za/article/2010-03-25-fnb-paypal-team-up-on-online-banking-service "Located in San Jose, California, PayPal was founded in 1998 and was acquired by eBay in 2002." https://www.paypal.com/za/cgi-bin/webscr?cmd=p/gen/about-outside get your facts straight!!!!

      Common_Sense - 2011-07-29 23:06

      @Xavier: All RobbedZombie is saying is that FNB have made PayPal available to customers for ages. Take a chill pill dude. PayD sounds exactly like Paypal except more marketable for SA consumers given it's an SA solution. And congrats for knowing how to use the web to find information.

      Martin du Plessis - 2011-07-30 08:56

      Now if only FNB can do that for Namibia.....

  • Limpopoist - 2011-07-29 15:25

    "On the consumer side, only 3% of our population has credit cards, and this is generally the only way to transact online. How true is these statement,few weeks back they were saying most of our population are in debt probable credit card (Soutn africa are not saving enough),Now why now only 3% have credit card. Is it another marketing strategy or they just fooling the fools agains.

      mozain - 2011-07-30 21:44

      No, this statement says that 3% of total sales were with online purchases in SA last year. Thats because not many ppl can afford to have a credit card - hence payD offers Debit Card with PIN, more easier and more convenient!

  • pianist - 2011-07-29 15:45

    Why not expand paypal? - its international and has a good record. Why reinvent the wheel? Oh I forgot, it was stolen. @brok3news - FNB paypal works off a debit card and a savings acc.

      Xavier - 2011-07-29 16:31

      @pianist WHow can you expand paypal if it is not yours!!!!!btw, fnb has nothng to do with paypal except for the online banking service fnb provides his clients to transfer money to and from their fnb account to their paypal account without using your credit card information. http://mg.co.za/article/2010-03-25-fnb-paypal-team-up-on-online-banking-service "Located in San Jose, California, PayPal was founded in 1998 and was acquired by eBay in 2002." https://www.paypal.com/za/cgi-bin/webscr?cmd=p/gen/about-outside further, if online retailers want to use paypal they'll have to pay for using the service which in turn gets transferred to the client.

      oldpilot - 2011-07-29 21:31

      No - FNB's system requires a FNB account plus a credit or cheque card - the last being needed to verify and link your PayPal account - even a FNB debit card cannot be used for verification since SA debit cards do not carry a Swift code as they do overseas. The FNB/PayPal deal is actually of very limited value here.

      Common_Sense - 2011-07-29 23:11

      @Xavier: Are you retarded or just a slight chip on your shoulder? Do you not understand how to read English or did learning some facts about Paypal suddenly make you think everybody thinks its an SA busines? Expanding paypal is simple. Create a website, sell some goods and register with Paypal to use their service for online payments. The more SA companies that do that, the more Paypal is expanded. Simple. What a dork!

      Wolfie - 2011-08-01 15:57

      @oldpilot, thanks for the simple clear explanation.

  • Juliaas - 2011-07-29 15:58

    What about Internet Purchases? No debit cards allowed.

      BokomoWeetbi - 2011-07-29 16:45

      Debit Cards have always been allowed, its dependant on the merchant has the capability and whether they are in agreement with the banks.

      Juliaas - 2011-07-29 17:35

      @Bokomo. Usually only credit cards are excepted especially if buying items from America.

  • LBS - 2011-07-29 16:13

    I don't believe that only 3% of our population has credit cards! Anyway, I have paid for 1Time with my DEBIT card.

      Limpopoist - 2011-07-29 16:51

      I am with you on these one

      daniel.schutte1 - 2011-07-29 21:14

      That was using this service :)

      mozain - 2011-07-30 21:41

      LBS, 1Time has partnered and launched with payD to offer you Debit Card with PIN. Enjoy your trip!

  • HASTUR - 2011-07-29 16:25

    @RobbedZombie Yes paypal has been around for years but online retailers have to pay for using the service which in turn gets transferred to the client.

      jester - 2011-07-29 16:50

      Im curious, do you really think PayD will be free for merchants to make use of? Of course not! There will be charges somewhere along the way, there always are!

  • paula.vaneyk - 2011-07-29 18:23

    This looks brilliant - as I am in the process of opening Kwazingelozi on-line shopping company and have been investigating different payment ways for my future clients. I had to find a service provider then contact the bank to get a internet merchant no and now also have to open a Business banking account. All this takes time and money. Thanks I will investigate payD. Best regards Paula van Eyk

      mozain - 2011-07-30 21:40

      Hi Paula, please log on to www.payd.net for further information... You will be hooked up thereafter!

  • Alex - 2011-07-30 08:39

    I'm able to buy online both here and in the States with my FNB DEBIT card. I don't understand the need for services like this or PayPal?

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