Africa: Airtel Launches World First Virtual Mobile Card

By George Okore

NAIROBI----Airtel Africa has launched world’s first virtual card that operates off a mobile wallet (PayOnline) that will give consumers across the continent greater financial inclusivity in the global e-commerce sector.

Registered Airtel customers will be able to make online purchases from any site where MasterCard is accepted. The single use shopping card will be initially available in Kenya for purchases made from non-Kenyan websites. The second phase of the programme will see the rollout of the online product across Airtel markets.

The tripartite partnership which also involves Standard Chartered Bank and MasterCard Worldwide signals the growing realizations by players in the e-commerce sector of the expected growth in mobile payments and contactless card payments in the next decade. Airtel’s consumer penetration in Africa backed by the financial structuring and regulatory framework expertise by Standard Chartered Bank combined with the global acceptance of MasterCard will provide the consumer with a compelling product that is fast, secure and convenient.

The move signals alignment by e-commerce players in the face of expected mobile commerce growth. Through it, millions of consumers in Africa can now leapfrog conventional payment methods and benefit from greater online payments inclusivity. The Payment Solution is compatible with all handsets, operating systems, for ease of use and based on a one time transactional number backed by control measures to enhance security. The one-time basis of the product has provided the consumer with a simple but secure payment process bereft of complex reconciliation and integration processes associated with other online transactions. On completion of the transaction, a confirmation message will be sent to the consumer’s handset.  

Speaking at the launch ceremony, Chief Projects and Transformation Officer, Airtel Africa N Arjun said sustained socio-economic changes witnessed in Africa over the last decade shows the continent’s ability to leapfrog conventional systems and embrace innovations on platforms such as the mobile phone.

Daniel Monehin, MasterCard’s area head for East and West Africa and Indian Ocean Islands, MasterCard Worldwide said the connected world is shrinking at a rapid pace as people turn to mobile phones to connect with friends and make purchases on-the-go. “Financially empowering the citizens of Kenya is a rewarding experience, not only for consumers themselves, but for the various institutions and merchants that are involved in doing so. MasterCard looks forward to working with Standard Charted Bank and Airtel to continue promoting the advantages of electronic payments and to accelerate the displacement of cash and cheques in Kenya,” he adds.

Kariuki Ngari from Standard Chartered Bank said PayOnline solution is a unique way of ensuring that our customers can transact in the digital world for the first time without having to have a credit card or use their physical debit card. The global opportunity for mobile payments is growing. According IE Market Research Corporation the global mobile purchases will reach $ 224.4bn by 2014.

In the latest IEMR global mobile payment forecast, the research firm opines that merchandise purchase growth will closely track overall growth in mobile payments globally. The PayOnline solution is compatible with all mobile phones and operating systems via a configured update from Airtel customer service. Equally, the three partners have instituted a raft of security controls to ensure probity and secure transactions.