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 start-up 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.
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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