Net1 Launches Mobile Virtual Card for CNP Transactions

Sept. 10, 2010

Net1 UEPS Technologies, Inc. recently announced that its wholly-owned subsidiary, Net1 Virtual Credit Card, Inc., has launched VCpay, a cell phone-based virtual payment card application designed for card-not-present transactions. Net1’s first distributor for VCpay, a top five wireless carrier in the United States with several million subscribers, will offer the service to its customers as an application that will be pre-loaded on new smartphones or can be downloaded on select existing devices. VCpay enables a subscriber to generate a unique, one-time use prepaid virtual card number to securely purchase goods and services or perform bill payments in any Card Not Present environment. Net1 believes that the VCpay application is the first mobile phone-based prepaid program with no requirement for the user to have a physical card or a bank account. Subscribers can load their prepaid virtual accounts with cash at any of MoneyGram’s 40,000 U.S. agent locations. “This initiative demonstrates our ability to create technological solutions that are ubiquitous with existing worldwide payment networks, and that require no changes to the commercial agreements that are already in place between issuers, acquirers, networks, transaction processors and the major brand owners,” said Dr. Serge Belamant, Net1’s chairman and CEO. “The simplicity of our Virtual Card is only matched by the strength of the security and functionality it provides, and the fact that it operates off-line thus ensuring that the customer experience will always be of the highest standard. This step will mark Net1’s entry into the United States, from which we can launch this product on a world-wide basis.”