Visa, Mastercard launch payment system in SA

Visa and Mastercard are introducing new authentication frameworks that will simplify online merchant payments in South Africa, reducing the complexity of the checkout process. Visa’s Digital Authentication Framework (DAF) was introduced last month while Mastercard’s Token Authentication Framework (TAK) is set to launch next year. The new systems will enable customers to complete the checkout process faster, without compromising on security.

Elizabeth Graham, Product Manager of Payments at digital payments anti-fraud solution provider Entersekt, said the new systems would reduce the friction in payment authentication and other related challenges, which would be welcome news for South African customers, particularly those accustomed to shopping on international sites where faster checkout is the norm.

Visa’s new framework allows all subsequent processes to be performed in line with the DAF rules once the customer has been authenticated on the merchant platform. Additionally, Visa has made issuers liable for fraud on authenticated transactions that meet the DAF requirements. Larger merchants are expected to be the first to adopt the program, with news of its benefits eventually filtering down to smaller businesses. Early adopters are likely to experience an immediate boost to their customer experience.

Entersekt has been involved in secure digital payment projects in South Africa for several years. Last year, the company signed a deal with a South African bank to enable payment security with behavioral biometrics from Mastercard subsidiary NuData for online commerce customers. The new authentication systems from Visa and Mastercard are expected to significantly reduce unnecessary payment friction while ensuring customer security.

Pan Finance is a print journal and news website providing worldwide intelligence on finance, economics and global commerce. Known for our in-depth analysis and opinion pieces from esteemed academics and celebrated professionals; our readership consists of senior decision makers from across the globe.

Contact us