September 28 2006

ecommerce without a credit card...

962,000 Brits lack a bank account, according to go&pay (a neat service that allows you to pay online using cash). Their 'plastic-less' state puts them outside the reach of etail, but a new service cunningly utilises the Payzone network - found in 25,000 convenience stores - to let customers pay by cash having reserved online.

This cunning service nearly passed me by in the blizzard of press releases that arrive to a warm welcome at press@internetretailing.net. Luckily, the witty drafting and the staggering number of people without 'la plastique' gave pause for thought.

The system developed is really neat: buy online, say you want to pay with 'folding notes' and you're given a reference and a printable barcode. Skip to the local Payzone purveyor, zap the barcode, pay the cash and that's it. The Payzone system remits to the retailer and also releases the goods to despatch.

In addition to enfranchising the card-less in society, the system could also be used where people fear too much tracking, worrying charges on credit card bills or even where retailers have suffered too great a charge-back level or credit card fraud.

Were go&pay to link with a distribution service then that same Payzone point could handle 'cash on delivery' or even returns. The possibility - while clearly not endless - are certainly intriguing.

Since the press release is such fun (I need to get out of IRTowers more often!) I've reproduced it in full below.

Ian Jindal Press release reads:

MUM'S THE WORD London, UK: September 22 2006 - Would you credit it? Almost a million Brits have turned their backs on banks and keep every penny of their savings tucked in socks, hidden in drawers, under the floorboards or stuffed in a mattress. A staggering 926,000 Brits actually choose not to have a bank or building society account, according to new research by go&pay, a service that allows you to shop online and pay with cash. That's two per cent of the total population over the age of 18 who have become self-confessed 'MUMs' - preferring to keep their 'Money Under the Mattress'. No less than 44 per cent of the people who don't have an account say they prefer to be in control of their finances themselves, while 16 per cent say they just don't trust banks. While sixty-one per cent of 'MUMs' say their friends and family think they are mad, 16 per cent say their partner has a bank account, meaning they don't need one. According to the survey of 3,000 people, one fifth say they find not having a bank account is liberating but many admit it can cause difficulties. A whopping 70 per cent say they feel discriminated against just because they don't have an account. Over a third say they have had problems with their employer. Of those who are employed, one third get round the problem of not having an account by being paid cash in hand, while another third get a cheque and take it to a cheque shop. Astonishingly, despite not having an account, 48 per cent of MUMs do own property, and the majority pay their bills by cash. Around half say they do worry about being targeted by thieves, with a crafty 26 per cent hiding their money under the floorboards. And amazingly, five per cent admit they really do stash their cash under their mattress. The majority of people without an account - 13 per cent - are from Northern Ireland, with the famously financially cautious Scots in second place. Most people without an account are aged 19 to 21, with nearly twice as many men than women choosing to go it alone financially. Surprisingly, 46 - 50 and 26 - 30 year olds were the next most likely to choose not to have bank accounts. And it is students who are most likely to be MUMs, with nine per cent of those who answered saying they didn't have an account. However, eight per cent of people without bank accounts said they were in medical occupations, and two per cent had manual jobs. Nearly half (47%) think it unfair of shopping websites to exclude people without bank accounts or those preferring not to divulge their account details online. Twenty-three per cent say they would prefer to be able to order goods online but pay for them in person. Some of those surveyed also said they thought this would allow people to better control their spending as well as being more secure. But MUMs don't envy those people with credit cards, with 80 per cent saying credit card holders should be concerned about the risks of identity theft or fraud when shopping on the Internet. A spokesman for go&pay said: "Even in our credit card crazy society it's clear there are millions who want the choice of using cash only or keeping their account details in their pockets if they prefer. The majority of retailers providing or planning cash-exempt online shopping sites are grossly underestimating the payment needs and preferences of many consumers." Notes to editors: *According to APACS statistics, around 6 million of the adult population do not have a bank account. ** Over 4 million prefer not to divulge bank details over the Internet (Office for National Statistics) About go&pay payment service After selecting their merchandise online in the usual way, shoppers simply click on the go&pay payment option to generate a unique barcoded invoice which, once printed, reserves the goods for a pre-determined period of time. Following barcode scanning and payment in cash at such places as convenience shops, newsagents and petrol stations, the goods will be despatched directly to the customer by the retailer. payzone, the payment point of sale network found in over 25,000 convenience shops, forecourts and newsagents, is the first outlet to offer the go&pay cash payment service. - ends -