The South African e-commerce market has always been a fascinating place with massive players and smaller players fighting for market share. With the rise of group buying sites the market has exploded and new players are popping up everywhere.
The e-commerce environment is more competitive than ever, growing at a rate of 30% per annum according to Mark Chirnside, CEO of payment gateway PayU.
Chirnside believes that, with the increased adoption of mobile technology and alternative payment methods, e-commerce is set to really take off in all South African markets.
“This move will gain even more momentum with increased internet penetration, lower data costs and more robust security penetration – strides in the digital realm which will undoubtedly see the unfolding of exciting trends in the e-commerce environment,” he said.
New technology is making e-commerce more popular. UK based company Semafone, has a system which allows a customer to enter their credit card information using the telephone keypad while still on the phone to the call centre agent. The card data is sent directly to the bank, completely bypassing the call centre agent and call recording– eliminating agent fraud and its associated reputational risks to the parent company.
However, a major problem with online payments is that they only really cater to those that have credit cards, debit cards or the EFT option. Prepaid cards are an excellent choice for those without banks cards or without the desire to use a credit card that can lead to debt. The benefit of the prepaid option is that it can be used online.
We’re excited to be part of this e-commerce revolution with the provision of prepaid cards for online purchases. In the future we see prepaid becoming a preferred method for the underbanked and those looking for safe online purchases.