Oltio joins forces with PayU

Oltio, has partnered with PayU to introduce mobile payment solution, payD, to the local market.

PayD aims to remove obstacles to the mainstream adoption of e-commerce by transforming a user’s mobile phone into a remote point of sale (POS) device, using debit or credit cards for payments to be processed.

“This is a significant partnership for us because PayU currently processes 65% of all online payments in South Africa for brands such as Kalahari.com and Netflorist, which is at the moment, only available to customers with credit cards.  payD makes it possible for debit card users to also make the transition to mobile based e-commerce,” says Dave Parratt, Oltio’s head of new business development.

According to an e-commerce study conducted by Strategy Worx earlier this year, South Africans remain sceptical of online shopping, with only 2.7% of the more than 15% of consumers that have a fixed line Internet connection choosing to purchase goods online..

“We believe that by putting the power of the point of sale device in the hands of consumers, via their cellphone, linking their number with a debit or credit card and utilising a Bank or ATM PIN number to authorise a transaction, we will minimise some of the scepticism surrounding e-commerce in South Africa,” Parratt adds.

PayD technology is being used by Oltio parent company, MTN, for its Eazi recharge pre-paid airtime top-up service which already has nearly 130 000 users.

“Adding payD to the extensive payment methods at PayU is another significant milestone in enabling e-commerce in South Africa. With PayD we now open up opportunities for merchants to reach more consumers who were previously excluded from transacting online, some of them would probably be transacting online for the first time,” says Mark Chirnside, CEO at PayU MEA.