NetPlus, MasterCard Deliver e-Commerce Payment App

June 22, 2017
NetPlus, MasterCard Deliver e-Commerce Payment App

NetPlus, MasterCard Deliver e-Commerce Payment App

By Dipo Olowookere

A giant leap forward has been made in the African e-commerce sector plagued by cash, with the majority of payments still being made in cash at the point of delivery.

The industry is predicted to generate yearly e-commerce sales in Africa of $75 billion by 2051 and in Nigeria alone; it generates over $1 billion every year and continues to grow exponentially.

But the biggest challenge facing online retailers has been cash, as it poses logistical issues and puts the consumer, merchant and delivery service at risk.

However, this is now a thing of the past with the development of a payment solution created by a Nigerian tech start-up called NetPlus in collaboration with MasterCard, a leader in payment system in the world.

Called the MasterCard e-commerce solution, it empowers the consumer, the e-retailer as well as the delivery service by providing a simple and secure digital solution.

Consumers can pre-authorise the payment when placing their order online, the e-retailer is given a sense of comfort and dispatches the goods via a delivery service, who is able to use the MasterCard e-commerce app to authorise the release of the payment once the consumer approves, ensuring the merchant is paid immediately.

A key feature is that if the consumer is dissatisfied with their package the transaction can be voided and the funds immediately released, so there is no delay – one of the biggest points of frustration for consumers buying online in Africa.

The process takes three simple steps as highlighted below;

Step 1:  The buyer (consumer) completes an online purchase and pre-authorisation is placed on the funds until the goods or service is delivered. The money is not taken out of their bank account, but is simply held until delivery is made.

Step 2: The seller (e-retailer) will dispatch the goods with help of a delivery service, the delivery service will have access to the MasterCard e-commerce app on either their mobile or tablet. This allows them to complete the transaction on behalf of the e-retailer once the delivery has been completed. This ensures the funds flow directly to the e-retailer and that the delivery service does not handle cash unnecessarily.

Step 3: On delivery the consumer is able to inspect their goods and confirm if they are satisfied. The transaction is then verified on the app by the delivery service representative, and as an extra security measure the consumer will enter the last four digits of their bank card to complete the transaction. If the consumer is not happy with their package, because they received the wrong size for example, the transaction is immediately voided on the app and the money immediately reflects back in their bank account.

Commenting on this development, Vice President and Area Business Head for West Africa at MasterCard, Ms Omokehinde Adebanjo, stated that, “Cash has held the sector back from reaching its full potential in Africa.

“We have invested a great deal of energy and resources to develop a workable solution that will meet the diverse needs of merchants and consumers across the continent, and world.

“It is fitting that our partnership with NetPlus, an African-born tech company, has resulted in us achieving our goal of digitizing the e-commerce sector.”

On his part, founder and CEO of NetPlus, Mr Wole Faroun, noted that, “The solution comes with extensive benefits for merchants and consumers.

“For e-retailers, the pre-authentication reflects commitment on the part of the consumer to the purchase, as well as guarantees real time payment and improved liquidity.

“Consumers benefit from renewed confidence in online shopping, peace of mind as the payment is only processed on delivery without the need for cash.”

Particularly exciting about the partnership between MasterCard and the tech start-up is the fact that NetPlus is the first African start-up to be selected by the MasterCard Start Path programme.

The initiative is open to start-ups from Africa and across the world who are rethinking banking and payments and who are well established already, having secured significant investment.

During a six-month virtual programme, Start Path provides start-ups with the operational support, mentorship and investment they need to develop the next generation of commerce solutions and grow their operations.

NetPlus was one of five start-ups chosen globally for the last programme of 2016, and Mr Faroun along with his team have already benefited from knowledge sharing and mentorship sessions in New York, London and Singapore where they were able to meet with other start-ups and MasterCard customers.

The Nigerian tech company proves that there is tremendous talent on the continent and that start-ups are contributing significantly to the growth of Africa.

Applications for the next six-month virtual program will be accepted through 11:59 pm ET on Tuesday, August 1, 2017.

Interested start-ups can visit https://www.startpath.com/ for additional information and to submit an application.

Dipo Olowookere

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

Mr Olowookere can be reached via [email protected]

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