Airtel and MasterCard to enable users buy goods with their phones

Airtel Africa, Standard Chartered Bank and MasterCard Worldwide have entered an arrangement that will enable mobile phone users to make online purchases from MasterCard merchants around the world.
Dubbed the world’s first virtual card that operates off a wallet residing on a mobile phone, the Airtel 1time Shopping Card will offer communities the opportunity for greater participation in the financial system as they realise the substantial benefits of mobile commerce.
“This launch of the world’s first virtual number on a mobile card marks a big milestone in mobile commerce,” Manoj Kholi, the Airtel chief executive officer (international) and joint managing director said.
“The airtel 1time shopping card will offer consumers a robust e-commerce solution that delivers security, accessibility, acceptance, ability and global reach. Subsequent phases of the program will allow airtel susbscribers to make payments across the MasterCard network.”
Kohli said the single use shopping card will soon be available in Kenya and rolled out to markets across Africa, subject to regulatory approvals.
“Airtel Africa customers in Kenya will soon be able to use their mobile phone to make online purchases from MasterCard merchants around the world,” Kohli said.
The simplified online transaction will work in the following way; each time an airtel customer is shopping online he or she will be able to request a single use shopping card number.
Airtel money services will generate a special 16 digit number that enables the completion of the transaction.
On completion of the transaction, a confirmation message will be sent to the consumer’s handset.
The single use feature of the airtel 1time Shopping Card provides the consumer with a convenient and secure online shopping experience.
Powered by MasterCard in Control technology the airtel 1time Shopping Card will enable more consumers to connect to the global marketplace via their mobile phones.
“Whether located in urban or rural communities, people will be able to participate in commerce from their hometown to anywhere in the world,” said Michael Miebach, division president, Middle East and Africa, MasterCard Worldwide.
He said MasterCard sees mobile payments as an innovative way to let consumers quickly and securely purchase their favorite items in this connected world.
These innovations at MasterCard he said also provide governments and other participants in the economy with a platform for financial inclusion.
“As a leading international bank in Africa, we are always looking for ways to bring innovative financial solutions to our customers,” Kariuki Ngari, the general manager and cluster head, Consumer Banking for Kenya and East Africa, Standard Chartered Bank said.
“The virtual card is a unique way of ensuring that our customers can transact in the digital world for the first time without having to carry a piece of plastic.”
Kohli said the global opportunity for mobile payments is large and the global unbanked population with mobile phones is expected to grow 70 percent over the next year to 1.7 billion people by 2012.
The opportunity for mobile payments Kohli said is especially significant in Africa, where there are close to 400 million mobile phone users and an unbanked population of 230 million households.
By 2014, Africa is expected to see 56% mobile penetration.