Ukash drives online payment

By Alex Kayle for Ukash
Johannesburg, 01 Dec 2008

Ukash, a UK e-commerce payment provider, has partnered with Blue Label Telecoms to roll out an online cash payment solution in SA.

Mark Chirnside, CEO of Ukash, says: "We saw a huge opportunity in SA. There are currently no precedents in the market and this opens the door to online shopping for so many South Africans."

The solution enables consumers to purchase goods from online merchants using prepaid vouchers. According to Ukash, users do not need to have a credit card and the payment provider claims the solution protects the user from fraud and identity theft.

Chirnside says 40% of South Africans are unbanked, which previously meant these consumers could not transact online. "It has also stopped online merchants from marketing to this segment, thus increasing the gap."

Ukash says it has achieved a growth rate of 257% from last year to 2008.

Consumers can purchase Ukash vouchers from terminals within the distribution channels of Blue Label Telecoms, a distributor of prepaid electronic tokens.

Arthur Goldstuck, CEO of World Wide Worx, says: "Online retail is definitely growing healthily. It`s especially useful for those who don`t have credit cards and we are seeing new options becoming available. A lot of students who don`t have credit cards tend to use online payment solutions."

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