Following the success of MPESA in Kenya, many companies are following the foot steps. If you have not heard Visa has announced new prepaid mobile payment system through MTN Group. The new product, a Visa prepaid account that can be accessed through a mobile phone, is basically meant for developing countries. As part of the launch, the new product will be available to customers in Nigeria and Uganda.
How It Works
The mobile phone is changing how consumers around the world pay and get paid, and offers financial service providers in developing countries a new, efficient channel to serve the unbanked and under-banked. In the last ten years, 100 million people have been newly ‘banked’ through mobile services that offer consumers basic financial services that are limited in geographic reach.
Visa’s recent acquisition of Fundamo, a leading mobile money platform in developing countries, and its integration into Visa, has created the first globally interoperable mobile payment platform that can connect existing mobile money services with Visa’s global payment network, VisaNet.
The result is a new Visa product that allows financial service providers together with mobile network operators to offer consumers a payment account that provides :
– Visa-quality Payment Security – The new product combines Visa’s advanced risk processing technology with the security and authentication features of mobile devices. Regardless of transaction size or where consumers make purchases, Visa and the account issuer will be able to authenticate the account holder at the point of transaction by requesting a PIN or password. In addition, Visa’s fraud monitoring capabilities can help mitigate and prevent fraud.
– Visa Payment Functionality – From international remittances to ecommerce transactions Visa’s new product will offer consumers a new payment account that enhances the payment functionality of their existing mobile money service. In markets with Visa acceptance locations, consumers may also have the option to receive a Visa prepaid companion card that can be used at ATMs and merchants where Visa is accepted.
– Transaction Authorization, Clearing and Settlement Services – For financial institutions and mobile network operators offering Visa’s
Developing countries in Africa, Asia and Latin America are among the first target markets for Visa’s new mobile-based prepaid product.