Collaboration between bancorp bank and net1 virtual credit card for mobile payment initiative

There was an announcement coming from the Bancorp Bank Payment Solutions Group. This is a division of the Bancorp Bank, which in turn is a fully owned subsidiary of The Bancorp, Inc. The announcement was about the new collaboration with Net1 Virtual Credit card Inc, which is a fully owned subsidiary of Net 1 UEPS Technologies Inc. This collaboration would be offering VCPay a prepaid card application for virtual payment. This will be designed for those transactions which are dubbed by Card Not Present in the mobile payments market. The VCPay application which has been launched a month ago has been distributed to thousands of smart phones with a greater adoption expected in the future too.

Meanwhile Metro PCS is turning out to be the first distributor of Net1 for VCPay. It has millions of subscribers who would be offered the VCPay application. The prepaid customers would receive this as an application that will be loaded on the latest smart phones. The application can also be downloaded onto the existing devices. The MetroPCS Virtual Prepaid MasterCard can be accessed by the subscriber through the VCPay and generates a distinct prepaid virtual card number that will be used only once. This will be to purchase goods securely as well as avail services such as bill payment on any CNP environment.

This is the first prepaid program which is phone based and doesn’t have any requirement to have either a bank account or a card. Customers can load their virtual prepaid accounts through cash at any of the 40,000 agent locations of MoneyGram. This includes groceries, pharmacy stores as well as convenience store chains. In due time, this can also be done by direct deposit into the mobile account through a bank transfer. This system offers a great link between the mobile phone and the prepaid account that is virtual and reloadable. This collaboration is largely based on the commitment of Bancorp Payment Solutions to change the way payments are made currently. The innovative product development would be great support for customers and will satisfy their diverse needs. It will also simplify the whole payment process because the virtual account can be used for bill payments, purchases and remittance in all places where a debit MasterCard would be used in normal cases. The application itself can be easily funded through free ACH transfers or cash deposits which will make it easier for the customers who are unbanked.