October 01 2006

GlobalCollect "doing" cash too...

Hot on the heels of our coverage of go&pay's system to allow cash payments online, GlobalCollect have announced their own method - pre-paid credit, or stored value, rather than pay-post-purchase.

Clearly, with the success of cash-based systems for mobile phones, bill payment and utilities, there's a momemtum behind addressing the million or so UK customers who lack bank accounts (and who are therefore largely excluded from internet transactions).

We covered go&pay's suggestion recently and we really liked their approach.

GlobalConnect's approach is more conservative and takes the form of pre-paid credit that's then used up on a transaction - more like a stored value card (eg Oyster or a phone card).

There's going to be room for both models - GlobalCollect's, for example, would allow for gifting or an easy transfer of value.

We'd be interested to hear from retailers who find that accepting these payment mechanisms (or others not yet known at IR Towers) gives an uplift in sales or access to new customers.

Ian Jindal GlobalCollect's press release reproduced below:

GlobalCollect now enables merchants to accept cash payments online! With the addition of new prepaid solutions Ukash and paysafecard into GlobalCollect's already very extensive payment processing portfolio, GlobalCollect now enables online merchants to reach a new and large category of never before reached shoppers. Amsterdam --- September 21, 2006 --- GlobalCollect, the leading international payment service provider today announced the successful integration of Ukash and paysafecard, two popular prepaid solutions, into its online payment platform WebCollect. Cash is still the only purchasing power for those who do not possess a card or a bank account such as young online shoppers. These prepaid solutions are also targeting shoppers who do not want to disclose payment details online due to fears around identity theft and security or those who desire anonymity and discretion. Prepaid solutions are typically available either as a physical card or a voucher system. Buying Ukash or paysafecard can be done through a large network of participating purchase points. Ukash, primarily available as a voucher, can be purchased at 120,000 physical outlets operating in the United Kingdom, Germany, Ireland, and Spain rollout offering coverage of 75% of continental Europe by Quarter 1 of 2007 (online and offline vouchers will be available). Meanwhile, paysafecard can be purchased in Germany, Austria, Greece, Spain, Slovakia, and Slovenia and has a proven track record with estimated EUR 100 million transaction volume in 2006. By the end of 2006, paysafecard will be also available in the UK, Ireland, France and Italy. In addition, paysafecard can also be purchased online. Both companies possess the required licenses from local banking supervision authorities and enable a maximum online cash transaction of 500 GBP/€750 as standard for Ukash and 1000€ for paysafecard. In addition, Ukash is capable of offering up to GBP 1000/€1500 per issued voucher for larger strategic issuing partners under their EU-wide regulatory authority. Michael Müller, CEO of paysafecard says: "paysafecard is very popular amongst several industries and in particular amongst online game websites. Making easy and secure online payments without revealing bank or credit card details online is the reason of our success. The cooperation between GlobalCollect and paysafecard, Europe's most popular prepaid card for the Internet, makes it possible for many popular websites to accept payments for online shoppers without a credit card or not willing to use it online."