Virtual Card for online transactions created by Airtel Uganda and Mastercard

Digital transformation is evolving so rapidly worldwide to the point where it has transformed our lives by digitizing each aspect of it, especially the financial part, and will continue to do so in the next few years.

While total transaction value in the digital payments segment is projected to reach US$6,685,102m in 2021, according to Statista, “The total transaction value is expected to show an annual growth rate (CAGR 2021-2025) of 12.0 percent resulting in a projected total amount of US$10,520,219m by 2025.”

That said, Airtel Uganda, in partnership with Mastercard, introduced a virtual debit card offering Airtel Money customers a safe, convenient and secure platform to transact online globally.

Virtual card to help non bankers

How will this new form of payment help customers? The virtual card which is valid for one year allows Airtel Money customers in Africa, especially those without a bank account, to make payments to local and global online merchants.

Those merchants like Netflix, Uber, Amazon, Google play, Aliexpress, Alibaba, accept Mastercard cards while maintaining that the customer’s financial data is always secure and private.

Amit Kapur, Chief Commercial Officer Airtel Uganda, said “Airtel and Mastercard have a shared passion for digital transformation and making mobile financial services accessible to everyone across the country. Airtel Money customers can conveniently do online shopping, pay tuition and subscriptions to their favorite sites and apps by simply registering for a virtual card through very easy and familiar steps.”

In addition, customers have the option to delete the card whenever they want and create another one immediately re-highlighting the security proofing the card offers.

“Across the MEA region our digital partnerships strategy remains focused on enabling digital transformation for our partners so that their consumers can enjoy seamless access to payments and a superior experience. We are very excited to partner with Airtel to lead the transition to digital by enabling access to their millions of consumers for online and in-person payments across the globe,” Amnah Ajmal, Executive Vice President for Market Development, Mastercard Middle East and Africa, said.

Since the virtual card is linked to the customer’s Airtel Money Wallet, the Airtel Money balance is always the card balance. All transactions have a maximum charge of UGX1,000.

Check frauds and additional risk

Every new technology has its pros and cons, and the virtual card is also comprised in this category.

The advantages include:

• The ability and capacity to check for fraud related activities.
• The cards have a short time lap and expire within a short period, making hackers not interested in them.
• The processing fee is very low compared to other payment schemes on the internet.
• No fee is processed without the consent of the buyer.

The disadvantages include:

• Risk taken by the merchant because the goods are delivered to the customer before the money is transferred to the company account.
• The recurrent expenses become a hassle because, your card number is likely to have expired by the time of your next purchase period.
• There is a long wait between the sale and the payment being deposited in the merchant’s account.