Mobicred targets credit cards for online payments

We just recently discussed Dwolla Credit, the online credit card alternative, and it seems that other companies are headed in the same direction. Mobicred, a South African Startup Startup A company operating within its first stage of investing is known as a startup. While startups may give the impression that the company must be new, that is not always the case.Many companies can have this designation after nearly three years of existence. Typically, a company exits the startup status after a period between 3 to 5 years or after successful funding rounds where capital is acquired. Startups tend to derive out of the belief that there is a demand for a service or product which is c A company operating within its first stage of investing is known as a startup. While startups may give the impression that the company must be new, that is not always the case.Many companies can have this designation after nearly three years of existence. Typically, a company exits the startup status after a period between 3 to 5 years or after successful funding rounds where capital is acquired. Startups tend to derive out of the belief that there is a demand for a service or product which is c Read this Term is offering in similarity, lines of credit for local South African consumers for online use.

Mobicred founder Jason Sive describes the service as credit card, without a credit card. No physical cards are provided, or even a card number. Purchases are completed with a username, password and PIN number.

Mobicred, with Redwood Third Party Processing, a South African processor and risk assessment firm, review and score the applications for approval. If approved the sign up takes a few minutes. If not, there is the possibility of a request for identification and last pay stub before approval.

Mobicred currently offers their service to a handful of online merchants. Once the customer chooses to use Mobicred as the payment option, they need to enter their username and password, and then enter a PIN number that will be sent to their mobile device to secure the payment.

Online credit lines seem to be the wave of the payment industry’s future. With more companies in different regions around the globe offering online credit, it will very interesting to see how it is fully realized. Keep a lookout for more companies who plan on targeting the credit card for online payment dominance.

Photo courtesy of: Wikimedia