Standard Chartered Bank and MasterCard launch world’s first virtual card on mobile phone

airtel Africa, Standard Chartered Bank and MasterCard Worldwide last week announced the launch of the world’s first virtual card that operates off a wallet residing on a mobile phone.

This innovative payment method known as airtel 1time Shopping Card will offer communities the opportunity for greater participation in the financial system as they realise the substantial benefits of mobile commerce. This single use shopping card will soon be available in Kenya and rolled out to markets across Africa, subject to regulatory approvals.

The mobile technology platform and airtel’s vast consumer penetration combined with the financial structure and regulatory framework provided by Standard Chartered Bank and the global acceptance of MasterCard will ensure that consumers will be able to transact in a reliable, convenient and secure environment.

Speaking on the groundbreaking innovation, Manoj Kohli, airtel CEO (International) and Joint Managing Director, said “The launch of the world’s first virtual number on a mobile card marks a big milestone in mobile commerce. The airtel 1time Shopping Card is proof that airtel will deliver innovative and relevant mobile solutions that will help consumers overcome the daily challenges in their lives. The solution will offer consumers a robust e-commerce solution that delivers security, accessibility, acceptance, ability and a global reach. Subsequent phases of the programme will allow airtel subscribers to make payment across the MasterCard network.”

airtel Africa customers in Kenya will soon be able to use their mobile phone to make online purchases from MasterCard merchants around the world. The simplified online transaction will work in the following way; each time an airtel customer is shopping online he or she will be able to request a single use shopping card number.  airtel money services will generate a special 16 digit number that enables the completion of the transaction. On completion of the transaction, a confirmation message will be sent to the consumer’s handset.   The single use feature of the airtel 1time Shopping Card provides the consumer with a convenient and secure online shopping experience.   “We are delighted with this unique strategic partnership with airtel and MasterCard Worldwide and are confident the airtel 1time Shopping Card will be the first of many such innovative products we will be able to roll out in the future”, said Standard Chartered’s Global Head for Cards & Personal Loans, T.S. Anil. “The launch of the airtel 1time Shopping Card should fundamentally change the payments industry not just in Africa, but also across the world.”

The global opportunity for mobile payments is large. The global unbanked population with mobile phones is expected to grow 70% over the next year to 1.7 billion people by 2012. The opportunity for mobile payments is especially significant in Africa, where there are close to 400 million mobile phone users and an unbanked population of 230 million households.  By 2014, Africa is expected to see 56% mobile penetration.

 “As a leading international bank in Africa and Kenya, we are always looking for ways to bring innovative financial solutions to our customers in line with our brand promise ‘Here for good’,” said Kariuki Ngari, GM and Cluster Head – Consumer Banking, Kenya & East Africa, Standard Chartered. ”We have been in Kenya for 100 years and have always been at the forefront of introducing new products and services to the market.  The virtual card is a unique way of ensuring that our customers can transact in the digital world for the first time without having to carry a piece of plastic.”

 “We continue to deliver new ways to enhance people’s lives and introduce convenient and secure tools to consumers across the world. Powered by MasterCard in Control technology the airtel 1time Shopping Card will enable more consumers to connect to the global marketplace via their mobile phones. Whether located in urban or rural communities, people will be able to participate in commerce from their hometown to anywhere in the world,” said Michael Miebach, Division President, Middle East and Africa, MasterCard Worldwide. “We see mobile payments as an innovative way to let consumers quickly and securely purchase their favorite items in this connected world. These innovations at MasterCard also provide governments and other participants in the economy with a platform for financial inclusion.”