A new mobile-payment service in South Africa enables consumers to pay for purchases using their PIN-debit cards online.
Telecommunication provider MTN Group Ltd. launched the service July 27 under the MTN Mobile Money brand, a spokesperson for the South Africa-based telco tells PaymentsSource. The service uses technology called payD, which can transform any cell phone into an online payment tool.
To use the free service, users first must register their mobile number and their debit card details, including their card PIN.
When making an online purchase, the user enters his mobile number on the retailer's checkout page, according to the spokesperson. “The user will then receive a text message requesting the debit card's PIN,” he says. “The user can then text his PIN back, and this will authorize the transaction, with the money being debited [from] the user’s bank account.”
The service automatically removes the message from the user’s sent box once the transaction is complete, ensuring the security of the debit card, according to the spokesperson. The mobile operator controls the service and is able to prevent the phone from saving the message.
The service is available to subscribers of MTN and Vodacom Ltd. mobile services and to debit cardholders of Standard Bank Ltd. and Nedbank Ltd. The first seller to offer the service is 1time Airlines (Pty.) Ltd.
