VVC, platform for offering low cost services by banks

A major milestone was recorded in the card/electronic payment world recently with the introduction of virtual Visa card for payment/settlement and consummation of transactions. This major development was recorded as various bank and non-bank financial institutions step up efforts to ease the challenge and difficulty of effecting payment for goods and services by their customers.

This new virtual card can be appreciated from the perspective that it cannot be cloned or stolen as it is an online card that is not carried about. It therefore guarantees convenience, security, speed and efficiency at a time when fraudsters are on rampage.

Chams Mobile, a CBN-licensed mobile money operator, the company behind the new innovation, is a joint venture between Chams Plc and Bancore AS of Denmark. The virtual Visa card is an online card which affords customers to make payment for goods and services. Among other benefits, the virtual card is not linked to any bank account directly and therefore limits exposure to the value on it. It is also universally acceptable as Visa is also involved.

Chams Mobile has as its partners in Nigeria Skye Bank Plc and Visa which power the new innovation.

The virtual Visa card is an entirely digital payment card for online and mobile use, both locally and internationally. The card is unique in that cardholders get a full card image (the Virtual card) on their mobile device, PC, or tablet, with a plastic card offered as an option if customers prefer.

The new payment system is expected to expand financial inclusion to millions of Nigerians by offering a low-cost mobile banking solution, as the card is issued free and linked to a broad range of financial services. It also offers an online payment alternative for eCommerce savvy individuals, small businesses and corporate companies, membership associations, and more.

The new virtual Visa card is available under the Kegow brand at www.kegow.com. Kegow is the programme and card brand of Chams Mobile limited.

Speaking at the launch of the card in Lagos recently, Gavin Young, deputy managing director, Chams Mobile, said he was excited to partner with Skye Bank and Visa on this unique and ‘First in Nigeria’ Visa Virtual Card payment solution, which was developed with the company’s international joint venture partners Bancore AS (as the mobile financial services processor) and Global Technology Partners (as the Visa prepaid card processor).

“It’s unique in that customers actually see an image of their card on their mobile phones, tablets and PCs, whereby all the essential features of a physical card are shown in their ‘virtual form’; card number, expiry date and CVV number, for example. This, for many customers, negates the need for a physical plastic card, although we offer plastic cards as an option for customers requiring such.”

Young said e-Commerce savvy users could shop securely online by loading funds from a bank account or any other financial card. For those without a formal banking relationship, he said they would have the means to make their money work for them and move towards financial inclusion.

“It’s also a very diverse product with a number of applications across various business and consumer segments. These include co-branded cards for e-Commerce companies, gift cards (as money can be credited to a recipient’s mobile phone), a naira card for Nigerians in diaspora as it can be issued online, a company allowances card and, as a payment card for retail distribution as it’s supported with a unique invoicing service,” he said.

Young described the card as much more than a mobile or digital wallet, as it bridges the gap between traditional mobile wallets and bank accounts by offering a low cost Visa card accepted in Nigeria and abroad, and is linked to a full range of financial services.

This, he said, facilitates easy online transfers to and from bank accounts, purchasing airtime, paying bills, and much more.

“To make the product even more secure and convenient, we have introduced another first in Nigeria, by offering a One-Time-Password ‘Verified by Visa (VbyV)’ service that replaces the old VbyV PIN service. This means that every process, from application to receiving the card, can be done entirely online from a mobile phone, tablet or PC in under 15 minutes,” Young added.

Akinwale Ojo, head, e-Channels, Skye Bank Plc, said “the bank chose to work with Chams Mobile, and its card processing partner GTP, based on careful consideration of the benefits all parties could bring to the table and in consideration of how the bank could best serve the millions of Nigerians with this product, and particularly those who may be financially excluded, requiring a low cost yet fully inclusive financial services offering”.

Ojo added that customers could apply for the card on their phones, tablets or PC and get their virtual card immediately as no waiting time is involved.

“It is easy to load from your bank card or through your internet banking service. You can then pay from your mobile when ordering and receiving goods and services,” he explained.

Ade Ashaye, country manager for Visa in West Africa, stated that their strategy of bringing world-class innovation to Africa continues to make shopping online and via traditional channels much more convenient. “Visa’s virtual card will make a real change to the lives of Nigerians by helping them to safely access the digital economy and participate in ecommerce,” Ashaye said.