Bank launches online purchase facility for debit cards

This means that an estimated 23 million debit cardholders in the country will now enjoy the convenience and safety of online shopping, which has until now been restricted to credit and cheque cards.

This initiative, called Npay, has also added a whole new dimension to industry efforts to help all South Africans keep stride with global trends. It brings internet purchasing to a sector of the population who previously had limited access to the internet, now made accessible via outlets such as 3@1 Business Centres, and will boost the debit card proposition and drive growth in debit card purchases.

"Nedbank is continuing in its effort to create innovative vehicles to provide access to banking and for more South Africans to shop safely and conveniently. It's a world first, too: Internet shopping using a PIN-secured Electron or Maestro debit card," says Nedbank's Pamela White, Head: Corporate Card Services.

Npay uses a point of sale (POS) terminal, through which cardholders swipe their PIN-secured Electron or Maestro debit cards when making payments at a network of Internet enabled sites such as 3@1.

Owing to the onerous technology and security required for accepting debit card transactions online, it has, to date, been impossible for debit cardholders to make internet purchases. Npay combines the necessary tools for online shopping, thereby providing a safe and easy solution for debit cardholders who often in the past had to revert to cash or had to travel long distances to a bank branch or service provider to make payment.

Many merchants, including low cost airlines, make significant use of a virtual online retail presence to sell their products. This meant that customers required a credit or cheque card to purchase their products online. Npay will now make these online products accessible to debit cardholders, while empowering businesses who operate in the virtual world to accept a wider variety of payments and accessing a larger customer base.

Nedbank has entered into a number of strategic partnerships which will broaden the acceptance of this payment option. These include low-cost airline, Mango, the country's four cellular network providers, web-based event tickets and municipalities to deliver essential payment for services at the click of a mouse.

"Nedbank embarked on this development as part of our efforts to provide an alternate to cash and a means of accessing alternate technology for all South Africans - many of whom only having access to a debit card," says White.

Through Npay, debit cardholders, irrespective of whom they bank with, will for the first time be able to purchase airline tickets, prepaid airtime, prepaid electricity, and concert or match tickets and pay traffic fines online. In time, more products and services will become available.

Using Npay

Npay is about convenience. Paying this way saves travel, time and queuing, and means you don't have to carry cash - making it safe and convenient. Experienced 3@1 franchisees will assist with any query when customers need help in processing their transactions.

Because the cardholder physically swipes their card and enters their secret PIN, chances of unauthorised purchases are minimal, as long the PIN is kept secret.

Wherever clients see the Npay sign, there will be a computer terminal with a card reader. Initially, Npay terminals will be launched at popular Internet business centres - the 3@1 Business Centre chain being the most prominent of them - but in the very near future, it is anticipated that South African debit cardholders will be able to use this payment channel via a host of other publicly accessible Internet locations.