8 May 2012
Mobile services company Oltio, a joint venture between Standard Bank and mobile operator MTN, is looking to change the way South Africans use their mobile phones by turning their handsets into personal point of sale devices.
Earlier this year, Oltio was nominated in the “best mobile money innovation” category at the annual GSMA Global Mobile Awards for its secure transaction authentication technology, payD.
Through the payD platform, launched in August 2011, consumers can buy products and services online, using their debit cards to pay for their purchase and their mobile phones to enter their PINs.
Major partners, vendors on board
The technology is used by Oltio parent company MTN for its Eazi Recharge pre-paid airtime top-up service, which has nearly 140 000 users.
Other partners include MasterCard, through its recently launched MasterCard Mobile payment platform; PayU, which currently processes 65% of all online payments in South Africa; and Vodacom’s new Express Recharge pre-paid airtime top-up service.
In addition, payD has more than 200 vendors on board, including 1time Airline and online retailer TakeAlot, and Oltio is pushing to grow the number of merchants offering payD to its customers.
“The MasterCard Mobile platform enables millions of South Africans to make secure purchases using their PIN-based bank cards,” Oltio CEO Terry Timson said in a statement last week.
‘Convenient and cost-effective’
“It’s a convenient and cost-effective payment mechanism that lets customers make use of their existing bank accounts, credit and debit cards, if issued by Standard Bank, Absa or Nedbank.
“This use of our pioneering technology means consumers can benefit from the competitive prices, convenience and variety associated with buying online, simply by registering their MasterCard or Maestro PIN-based credit or debit card to transact.”
payD is also available to PIN-based Visa debit and credit cards issued by Standard Bank, Absa or Nedbank. PostBank customers can also use payD to make payments on their mobile phones.
According to Timson, this means “we are, in effect, enabling the vast majority of the more than 30-million South African debit card users to join the e- and m-commerce revolution, many for the first time.”