The partnership will enable Zazoo to seamlessly integrate its mobile virtual card (MVC)technology to power Visa Prepaid into Oxigen Wallet in association with RBL Bank as sponsor bank and co-branding partner.
Zazoo has operations in 12 African countries, and it also has a presence in Colombia, Spain, South Korea, the Philippines, the UK and the US. The firm told TechFinancials.co.za last year that its is eyeing speedy global expansion focusing on the UK and other parts of Europe, US and other developed and emerging markets.
The firm said it was planning to take Net1’s patented technology, such as MVC payment app and Biometric Variable PIN, to new markets, using London as a convenient hub from which to coordinate all its global deals.
The latest move by Zazoo will enable Oxigen Wallet to use MVC technology to power the Visa Prepaid card securely and off-line for card-not-present transactions, such as e-commerce or m-commerce purchases in India.
Zazoo believes that its VCpay card cannot be cloned or compromised. A cardholder generates a MVC offline and no
one else can access it until the transaction is complete. The offline capability prevents card skimmers from accessing card details through conventional backend systems.
With an MVC network, coverage or signal is not an issue as the process of creating a card can be completed offline. As part of the safety of the app, the MVC card can be configured to expire immediately after the transaction. This banking suite operates on any type of mobile device and allows for a multitude of funding options and payment services.
Zazoo is eyeing India’s market due to the fact that digital transactions are expected to account for 27% of total transactions by 2020. Smartphone adoption is rapidly increasing, which in turn drives internet usage as more than 60% of India’s roughly 350 million internet users access the web from their phone, according to IAMAI.
It is estimated that it took over a decade for India’s internet user base to grow from 10 million to 100 million, three years to cross 200 million, and last year alone reached 300 million. Similarly, a Goldman Sachs report states that Indians spend approximately $20 billion annually online which is expected to grow 15-fold to $300 billion by 2030.
“Oxigen is a leader in promoting financial inclusion for the masses of India, and our technology will enable them to penetrate the market further by providing interoperability to their current semi-closed loop wallet,” says Philip Belamant, MD of Zazoo.
“For the first time ever, Oxigen users will be able to transact anywhere Visa is accepted. These spending locations include social networks and merchants like Amazon, FlipKart, Snapdeal and Zomato. We are thrilled to partner with Oxigen as we continue to grow our global footprint and we are confident that the power of our technology will assist in increasing Oxigen’s user adoption in India.”
Oxigen Wallet customers will be able to use the application to make any purchases or bill payments at online merchants, or send virtual gift cards to friends and family. To launch MVC with Oxigen, Zazoo has also partnered with TranServ Private.
“Oxigen has always been a frontrunner in all its business verticals and we are continuously striving to add further value to our expanding product proposition. This is for the first time ever in India that a mobile wallet user, banked or unbanked, will be able to make transactions on all ecommerce/payment sites where Visa is accepted. Our association with Zazoo and Visa helps us attain another milestone as India’s leading digital payments solution provider by giving our customers another secure means of making payments”, said Pramod Saxena, chairman and MD of Oxigen Services India.