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March 15, 2007
Ukash Growing Online Payments Biz Without Credit Cards
On the back of success helping HabboHotel (from Sulake labs) and Stardoll, the online paper doll site, extract payments from kids and teenagers that don't have credit cards, as well as online gamblers who play PartyPoker and Bet365, Ukash is now promoting its cash voucher system to social networks.
It described how it works in a statement:
Customers exchange cash for Ukash at POS [point of sale], and then spend the value online at merchants displaying the Ukash payment brand. Ukash contains a secure and unique 19 digit code - to spend Ukash the consumer simply enters their 19 digit code and value when asked for payment details during the check-out process. The Ukash payment is authorised in real-time, assuring payment to the social network operator and allowing the consumer to participate instantly.
The maximum amount for a cash transaction using Ukash is €750 and the company is FSA regulated. With that size of spending limit, Ukash must also be used by adults that want to make purchases online that won't show up on their credit cards.
Sound like Ukash a good thing going, although it's a pretty infrastructure-intensive business. The company claims 120,000 payment/purchase terminals operating in the UK, Germany, Ireland and Spain, in newsagents, grocery stores, petrol forecourts and the like.
We could imagine this company getting acquired by a firm that is already selling pre-paid cards or other types of voucher systems and has an infrastructure to exploit and grow. Alternatively, one of the Paypals or Click And Buy types of companies might snap it up.
View- Ukash
Posted on March 15, 2007 07:24 PM | Posted to Web 2.0 | Permalink
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