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.


- Follow Duncan on Twitter
 

Read more on:    mtn  |  e-commerce
NEXT ON NEWS24X

SHARE:

Read News24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
23 comments
Add your comment
Comment 0 characters remaining

Inside News24

 
/News
 

Must see! The most luxurious dog house!

This dog house comes with a treadmill and hot tub, you have to see it!

 
 

Luxury living

WIN!
Ridiculous demands people with too much money make
8 of the priciest places to dock your yacht
Habits of the world’s richest people
Horoscopes
Aquarius
Aquarius

You are a high flier with idealistic and set standards. There is a tendency to be too idealistic or fixed on one way and this can...read more

There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.