Virtual Payment Cards May Be Effective Candidates for Online Payment Solutions

We obtained information that in Kenya launched a new payment solution in the form of Virtual Payment Card. Your mobile phone can be used as a credit card or electronic wallet and can be used for online transactions internationally.

This is the first pilot project in the world supported by well-known financial institutions, namely Standard Chartered Bank and MasterCard. The service carried out by mobile operator Airtel Africa is called PayOnline and the payment is made using Airtel Money -- here it is similar to Telkomsel Cash or XL Tunai.

Its use is not difficult. First the user orders a shopping card number (which acts like a credit card) through the menu available on the phone. Next, the Airtel service will generate a 16-digit number. The transaction is completed once the purchase is successfully authorized and must be used first within the first 24 hours to ensure its security. This 16 digit number can be used as a "credit card" number with a certain limit (where this limit can be set and paid in advance, either per transaction or daily) and can be used to transact in foreign currencies, including US Dollars, Pounds, or Euro.

With an infrastructure and framework that meets banking standards, it is undeniable that PayOnline is an attractive solution for developing countries, including Indonesia, to legitimize their transactions -- even internationally. With a guarantee from MasterCard International, merchants from foreign countries will certainly not be afraid to transact with buyers from Indonesia -- who in the past had problems with fraud, carding, and so on. Buyers from Indonesia also benefit because they don't have to bother with making credit cards so they can buy goods or services -- both from within and outside the country.

PayOnline has already gained international recognition by getting the highest award as Best Mobile Money Product or Solution at the Mobile World Congress 2011. Although it is not stated why Kenya was chosen as the pilot project, the latest statistics in 2011 show Kenya has had a mobile phone penetration of 63%. of the total population according to a study conducted by CCK.

If the pilot project carried out in Kenya is successful, of course we hope that this solution can be applied in other developing countries, including Indonesia. Of course this is an alternative because Google or other similar service providers will certainly compete to provide the same convenience. With credit card penetration that is still small, this solution provides hope for the convenience of online transactions and moves online business to a better direction.

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