Virtual cards offer financial inclusion for online payments in emerging markets
JULY 17, 2017
By Brian Richardson, CEO and Co-Founder, WIZZIT International
It’s never been simpler to shop online. Flowers, sneakers, food, diplomas – you name it, you can buy it online. Except you can’t, if you don’t have a credit card. Two in three black teens in the USA make purchases online, so retailers are aggressively growing their digital footprint, targeting consumers from all angles.
However, it’s not enough to retrofit the online shopping structures of developed countries to emerging markets. The bureaucracies of traditional banks and the requisite paperwork to open a bank account – let alone access a credit card – financially excludes mass markets. And online shopping is no exception.
Access without inclusion
Richardson co-founded FinTech innovator WIZZIT International and is dedicated to finding and building solutions to drive financial inclusion. The prerequisites for simply opening a bank account – which to those in the developed world might seem obvious – exclude those who need it most. Proof of residence, proof of employment, pay slips.
Financial security, purports Richardson, is a desperate need in third world countries. And online retail services are unfortunately built on the pre-existing structures of traditional banks.
“Physical retail spaces are shrinking as the convenience of online shopping up-ends the traditional notions of retail – even the unbanked should have access,” explains Richardson.
Cards for customer clicks
The premise of the card, as explained by Richardson, is an ephemeral set of card details that can be used to complete digital transactions for a set and specific amount. The details self-destruct within a set time limit and can’t be reused, and the designated amount can’t be exceeded. It’s completely safe, efficient and convenient.
“The possibilities for a virtual card are endless. Not only does it financially include masses in emerging markets, it yields options for people to assign card details to a third party to purchase goods or make payments online – whether it’s a student without a credit card or anyone who’s reticent to use their credit cards online for safety reasons.”
More than half the banked population with credit cards are concerned about inputting their card details on websites. An ultra-secure virtual card totally allays these fears facilitating safe and secure online shopping.
Any bank can offer the technology as a value-add to their customers. It’s this kind of future-proof FinTech innovation required of traditional banks looking to expand in emerging markets – or in the eyes of the modern customer.
Of all the market segments, the least serviced is the SME market – despite small business being the backbone of any economy. WIZZIT has developed a new tailor-made solution to address this gap.
Introducing the WIZZIT International Smart ESB. Developed over the last 10 years, it’s the ultimate solution for seamless integration with all existing and third party banking systems while maintaining complete security.
We can now offer an exciting range of end-to-end technology products for banks to service retailers and merchants in new ways.