November 01 2006

Visa vouchers for 9 million new online shoppers?

Almost nine million people have been left out in the cold from the internet shopping revolution according to figures from APACS in an Online Shopper study by 3V Transactional Services.

Almost a fifth of the adult population want to shop online but don't - due to either not having a bank card, the fear of online fraud or the worry about losing control of their spending. This is a large number of extra shoppers, which are now being addressed by payment services.

We have already covered GlobalConnect's pre-paid system but Visa has now entered the arena in partnership with 3V Transaction Services. Its pay-as-you-go Visa voucher system allows shoppers without a credit card to make purchases online on any site which accepts Visa credit cards.

The secure vouchers can be bought at any one of 25,000 participating payzone shops and topped-up like mobile phones. Presumably, it will only be a matter of time until Mastercard follows suit.

Emma Herrod Press release follows: ALMOST NINE million people have been left out in the cold from the Internet shopping revolution, new figures warn today. The 3V 'Online Shopper' study, from 3V Transaction Services Ltd, claims that almost a fifth of the adult population want to shop online but don't - due to either not having a bank card, the fear of online fraud or the worry about losing control of their spending. The research shows that eight in ten people believe you can save money shopping online - a saving of up to 25%. Last year alone 310 million online card payments were made in the UK for a total amount of £22 billion**. Yet millions of people are denied access to the best deals because they don't own or want to own the plastic to pay for them, or are uncomfortable using a card online even when they do have one. The findings are published as 3V launches a new pay-as-you-go VISA voucher in the UK - a secure way to buy goods online using cash. The 3V Voucher enables everyone over the age of 16 to shop online safely, wherever VISA is accepted, without using a credit or debit card. And it's simple to buy - just like buying mobile phone top-up. The innovative new patented product is designed to substantially reduce fraud as 3V Vouchers can't be cloned, and security details are delivered separately to the customer's email or mobile phone at the time of purchase. Good news for the 16% of people in the 3V study who say they know someone who's been a victim of fraud online, or the 38% of people who have experienced fraud on bank cards elsewhere. The key features and benefits of the 3V Voucher are:

It's just like buying mobile phone top-up

Secure - security details are delivered separately by phone or email when you buy your 3V Voucher

Convenient - easily available from up to 25,000 participating payzone shops across the UK

Accepted worldwide on any website site displaying the VISA logo - use just like a credit card anywhere online

Available in amounts between £20 and £200, at a one-off cost of £3.50 per voucher

Money back at anytime for £1.75 - even if lost or stolen

Kieron Guilfoyle, chief executive of 3V Transaction Services Ltd says: "The launch of 3V Vouchers in the UK is great news for people who want to shop online but can't or for those who don't want to because of the fear of fraud or going into the red. "Simple and easy to buy - just like purchasing mobile phone top-up - the 3V Voucher gives people all the benefits of a bank card without the hassle of credit checks, filling out lengthy application forms or getting bank references." The UK launch follows a successful pilot in Ireland. Over 60,000 have signed up for 3V Vouchers since launch in October 2005. The majority of users are aged between 18-35 years old and interestingly 33% of users already have a credit card. 3V Transaction Services Ltd has partnered with VISA, Irish Life and Permanent PLC and cash acceptance network, payzone to bring 3V Vouchers to the UK today and in Europe from 2007. Carol Heath, head of pre-paid for VISA Europe said: "VISA is excited about 3V launching in the UK market. The ability for someone to enter a payzone store and purchase prepaid vouchers with cash provides an innovative and flexible solution for those wanting to take advantage of what the online marketplace has to offer."