Oltio’s payD, A joint venture between Standard bank and MTN

Oltio has introduced the payment solution payD into the South African market. Using this solution customers can make online payments using their debit,credit or their cheque card.

Oltio was formerly known as MTN Mobile money South Africa. It is a joint collaboration between MTN and Standard Bank in South Africa. Dave Paratt is the CCO of Oltio, South Africa and Terry Timson is CEO of Oltio.

For making the payment, Oltio is selected as the payment method on one of the 200 vendor sites where payD is accepted. First time users have to register their debit card details on the vendor website.The system then authorizes the user’s cellphone by sending a text message to the user.

After confirming the payment by cellphone the system prompts the user to enter the ATM card pin number to confirm the payment- which will result in the money being paid immediately. The card details entered by the user are all encrypted and are sent straight to the bank.

Some features of payD:

  • PayD works by enabling users to key in the ATM PIN they use with their bank card into their phone securely.

  • The service safely encrypts the PIN using the SIM card (which has a microchip similar to the microchip in a credit card) in their mobile phones.

  • When users register for payD, they enter their bank card details once, which are encrypted securely and linked to their Vodacom or MTN SIM card.

  • After that, to make a payment on a website, users receive an authenticating message on their mobile phones.

  • Once this is confirmed, the system prompts the user to enter his debit card personal PIN number on a mobile phone to complete the payment, which is then confirmed through the website. The payment is made immediately.

  • Users are charged the online banking fee and vendors are charged the cost for using payD solution.The service so far is limited to Standard bank, Absa, Nedbank and Postbank customers.

The first thing about South Africa is that we have very good debit card penetration. In fact, we have pretty good banking penetration as a country as well. If you look at it from an MTN perspective, roughly 70% of the customer base is banked, and of those that were banked, 97% had debit cards. Only 3% qualify for credit cards said Dave Parratt.

payD is also called as Mastercard mobile and allows customers to buy airtime directly from mobile network operators and allows transactions on e-commerce sites using Mastercards pin based products. payD has more than 200 vendors on board including 1time Airline and online retailers TakeAlot.