Evolution of mobile payments in SA
Mobile payments in South Africa are evolving. The days of carrying cash have been replaced with applications like VCpay, which are safer, quicker and more convenient. Read the Fin24 roundup on the local competitors in this space:
Flick, snap, scan, zap! The words seem to come off the pages of a sci-fi comic book. Soon, all consumers will adapt this lingo as they use their phones to buy their favourite cup of coffee or purchase their dream car.
With mobile apps FlickPay, SnapScan, Zapper, VCPay and Geopayments making their presence felt more than ever, the time of cash and cards could be coming to an end.
These payment systems are a few of the dominant players in the mobile payments market, but there are a host of products and systems that are making life simpler for consumers and retailers.
There’s also the security risk. All that data linked to bank details, which can be used to buy anything!
The PRs and CEOs of these companies pride themselves on security and safety, and rightly so. Some apps are built entirely on the model of security. Take VCpay for example. They create a virtual card offline on the app each time you make a purchase through their app.
Jose Soares, the chief marketing officer of Net1Mobile Solutions – owner of VCpay – explained the need for online payment systems that are fraud-resistant. “Our program uses an algorithm to create a cryptographic credit card,” he said in a telephonic interview.
‘“Its aim is to address fraud. Our app upgrade this year will be able to generate 3D secure codes as well as a physical code,” he said. “Its main use if for online payments, but you can use it at a retail if you input the card details manually.
“It can be tricky when paying for an online airline ticket or a Computicket event as some companies don’t yet understand the system and want to see a real credit card,” he said. “We are ahead of our time with the technology.”
It scores the highest on the security scale for online purchases, but for physical retail usage, it’s not yet ideal. But definitely watch this space.
Read the full story on Fin24.