Category Banking

Nedbank launches facility for online purchases using your bank debit card

09 September 2008 Nedbank

Nedbank has reaffirmed its commitment to being a‘bank for all’bypioneering a service that will enable the public to make internet basedMaestro and Electron debit card transactionssafely.

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

This initiative, called Npay, has also added a whole new dimensionto industry efforts to help all South Africans keep stride with globaltrends. It brings internet purchasing to a sector of the population whopreviously had limited access to the internet, now made accessible viaoutlets such as   3@1Business Centres, and will boost thedebit card proposition and drive growth in debit cardpurchases.

“Nedbank is continuing in its effort to create innovative vehiclesto provide access to banking and for more South Africans to shop safelyand conveniently. It’s a world first, too: Internet shopping using aPIN-secured Electron or Maestro debit card,”says Nedbank’s PamelaWhite,Head: Corporate CardServices.

Npay uses a point of sale (POS) terminal, through which cardholdersswipe their PIN-secured Electron or Maestro debit cards when makingpayments ata network of Internet enabled sites such as3@1.

Owing to the onerous technology and securityrequired foraccepting debit card transactions online, it has, to date, been impossiblefor debit cardholders tomake internet purchases.Npay combines the necessary toolsfor online shopping, thereby providing a safe and easy solution for debitcardholders who often in the past had to revert to cash or had to travellong distances to a bank branch or service provider to makepayment.

Many merchants, including low cost airlines, make significant useof a virtual online retail presence to sell their products. This meantthat customers required a credit or cheque card to purchase their productsonline. Npay will now make these online products accessible to debitcardholders, while empowering businesses who operate in the virtual worldto accept a wider variety of payments and accessing a larger customerbase.

Nedbank has entered into a number of strategic partnerships whichwill broaden the acceptance of this payment option. These include low-costairline, Mango, the country’s four cellular network providers, web-basedevent tickets and municipalities to deliver essential payment for servicesat the click of a mouse.

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

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

Using Npay

Npay is about convenience. Paying this way saves travel, time andqueuing, and means you don’t have to carry cash - making it safe andconvenient. Experienced3@1franchisees will assist with any query when customers need help in processing theirtransactions.

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

Wherever clients see the Npay sign, there will be a computerterminal with a card reader.Initially, Npay terminals will be launched at popular Internetbusiness centres–the3@1Business Centre chain being themost prominent of them–but in the very near future, it is anticipatedthat South African debit cardholders will be able to use this paymentchannel via a host of other publicly accessible Internet locations.

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