Visa’s agreement with Bharti Airtel expected to extend mobile payments to seven African countries, while Secure Visa payments, which feature unique series of numbers to authorize payments without personal details revealed, are only available to US customers.
Visa, Inc. (NYSE:V) has announced its partnership with Samsung Group’s ‘Samsung Galaxy S6’ for supporting customer payments through Visa. However, this facility will only be available to US customers apparently for testing purposes. It is scheduled to be launched in the coming summer. This new technological payment solution from Visa Inc. is crucial, as it will replace the sensitive account information that is loaded on plastic credit cards. Information, such as the 16-digit account number, expiration code, and the security code, is replaced by a unique series of numbers that will be able to authorize payments without the need to expose any personal detail of the credit card user.
This system is claimed to prevent any exposure of the actual account details to avoid violation of the user’s privacy. It is speculated that it will help to make mobile phone payments much safer for everyone. All this process is undertaken is to ensure fraud protection. Ryan McInerney, President of Visa Inc., says that the collaboration with Samsung makes sense, since it provides synergies in terms of Visa’s use of global technology payment system and Samsung’s innovative mobile experience for users of Samsung Galaxy Series smartphones.
This collaboration is aimed at extending its reach to a wide range of global customers, while providing market access to promote the concept of e-commerce. It is also facilitated by secure payment mechanism for any transactions conducted globally. Earlier this month, Visa also entered into an agreement with India-based telecommunication firm, Bharti Airtel, to provide mobile payment services to African countries where Bharti Airtel operates, such as Ghana, Tanzania, Kenya, Madagascar, Gabon, Seychelles, and Rwanda.
The agreement will be based on the existing capabilities on Airtel’s Mobile Money Service, where account holders can use their account from this service to pay either in stores or online, wherever Visa is accepted. Likewise, Airtel customers can withdraw their money or make payments from their Airtel Money account using the Airtel Money Visa companion card.
In addition, through this mechanism, subscribers can conduct their micropayments, pay utility bills, and internet bundles. Airtel customers will be further empowered by having access to retail and online payments using only their Airtel Mobile Phone to manage all their mobile payment and financial services. The service has already been introduced in Kenya, but it will be extended to other African countries served by Airtel, later this year.
Visa Inc. has been trading between $67-70 since the beginning of the month, as investors cheered on the company’s move to capitalize on emerging markets as it collaborates with local and multinational telecom operators from South America to Asia to provide access to electronic financing.