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E-commerce is booming globally. It’s projected that global retail e-commerce sales will reach $4.5 trillion by 2021, tripling the online revenue of 2014. In Africa alone, e-commerce is growing by 26% year on year. Businesses, banks and financial service providers are scrambling to adjust traditional systems to make way for the thriving industry.
But, out of 7.5 billion people and a mobile phone in almost every pocket, 1,7 billion adults worldwide are unbanked. This under-served, non-credit card market who want to transact online cannot access a credit card or other financial services and are totally dependent on cash While policy makers are working to gear up the stalled economy in emerging markets, economic growth is not possible without financial inclusion.
It is possible to balance financial inclusion and future proof banks with digital and mobile-first solutions from Financial Service Providers (FSPs), FinTechs and mobile network operators (MNOs). Partnering with these players is one very big step forward to this goal.
FinTechs bring innovative digital solutions to the table, like virtual credit cards that cut down on implementation time and increase revenue. WIZZIT International’s Virtual Card is a safe and convenient online payment method to add to a bank’s existing product offering and can be installed within 12 weeks. It allows all customers to transact online without the need for a credit card and the Virtual Card can be sent to friends and family.
How does it work?
For your customers, using Virtual Card is easy. It allows them to buy and pay online in seconds.
The time-sensitive Virtual Card is pre-loaded with funds for the transaction as specified by the account owner. The funds are available to make online payments, complete with numerical fields andexpiry date.
For banks, implementation is easy. Virtual Card can be branded with each bank’s identity. Virtual Card can also be implemented on an existing banking app, USSD or integrated into WIZZIT’s USSD system.
Access to new customers
Introducing Virtual Card to a market ready to shop means gaining access to 1,7 billion potential customers who don’t have access to financial services. As smart phones become more affordable, so will the popularity of app-powered platforms as a channel for financial services.However, the bulk of mobile phones in emerging markets are feature phones and don’t have access to app technology.
USSD gateways provide a channel that is quick, safe and easily accessible from all mobile phones. It will remain the clear channel of choice and critical to access the lower end of the market which is poised for growth. WIZZIT’s Virtual Card opens the door to the feature phone market.
What this means for the market?
This revolutionary WIZZIT innovation benefits customers across the board, from individuals who fear giving their card details on internet sites to students without credit cards to the under-banked masses. Virtual Card is a ground-breaking value-add that banks can offer to their existing customers or to a new and untouched segment of the market.
Partnering with a global leader like WIZZIT can give millions of people the opportunity to transact online, bringing in additional revenue for banks.
The industry is evolving at a rapid rate and financial inclusion is an opportunity that can no longer be ignored by banks. The future of payments is virtual and it’s here.
For more information on Virtual Card and implementation, talk to WIZZIT International CEO, Brian Richardson or visit WIZZIT