Virtual Payment Card Maybe a Candidate for Effective Online Payment

We got the information that's in Kenya there has been launched a new payment solution in the form of Virtual Payment Card. Your mobile phone can be available to make payments as a credit card or electronic wallet to do international online transactions.

This is the first pilot project in the world which is supported by well-known financial institutions, Standard Chartered Bank and MasterCard. This service is provided by mobile operator, Airtel Africa, and called as PayOnline and the payment will be done through Airtel Money—it is similar to Telkomsel Cash or XL Cash in Indonesia.

It is not difficult to use it. First, the user needs to order a shopping card (which works like a credit card) through the menu available on mobile phone. Next, Airtel service will generate 16 digit number. The transaction will be done when the purchasing has been authorized. This is should be done within 24 hours for security reasons. This 16-number works like credit cards with certain limits (the limit can be set and pre-paid, per transaction, or daily). It is also available for foreign exchange including US Dollars, Pounds, or Euros.

With a standardized infrastructure and framework that is a full-fledged bank standard, it is no doubt that PayOnline is an interesting solution for developing countries, including Indonesia to legitimate transactions - even the international transactions. With the guarantee from the MasterCard international, merchant from foreign countries will not afraid anymore to do transaction with Indonesian buyers - who previously have problems with fraudulence, carding, and so forth. Indonesian buyers also get advantages because they don't need to have credit cards to buy things or services - local or international.

PayOnline has been recognized internationally and got the highest appreciation as Best Mobile Money Product or Solution at Mobile World Congress 2011. Although it is not mentioned why Kenya was chosen as the place to do the pilot project, based on 2011 statistics, it is known that Kenya has 63% mobile phone penetration from the total population based on the study by CCK.

If the pilot project in Kenya succeeded, we hope that this solution can be applied in other developing countries. This is, of course, can be an alternative since Google or other service providers will compete to give similar facilities. With the low credit card penetration, this solution can give hope for easier online transactions and running the better online business.

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