Debit: Facebook Visa Cards Coming Soon?

• The founders of the social P2P transfers app ZunguZ are planning to propose the world first Facebook-branded Visa debit card in the six months to come in South Africa.

• Since last year on, ZunguZ’s app for Facebook has been allowing its users to link their banking credentials to the social network and transfer funds to their “friends” based on their Facebook profiles. Only the senders have to provide their credentials: recipients simply have to have the app installed.

• ZunguZ could currently be in talks with several South African banks to improve the availability of their service: an intermediary First National Bank (FNB) account is used to store the amounts before reception. 40,000 free Facebook debit cards should be sent by post mail to ZunguZ’s existing customers and allow them to make cash withdrawals or pay at Visa affiliated retail outlets. A network of brick and mortar partners is also being set up (including Shoprite and Incredible Connection, for example). The cards purchased in stores should be activated using Facebook.

• If the user only provides his mobile phone number, he shall only store up to 3,000 rands (about 256 euros) to his ZunguZ account; if he provides full identification with copies of his ID, the limit increases to 20 000 rands (or roughly 1 900 euros).

Source: IT Web Africa

• The South African market should then witness this world première however Facebook had seemingly been stepping away from its once outstanding multi-channel strategy eying on the physical retail environment especially: Facebook Credits have been terminated as well as the associated cards.

• Launched in 2011, ZunguZ has been integrated in Facebook’s App Center last May. The solution had until recently been unable to spread due to low PC and Smartphone equipment rates in South Africa, which accounts for their decision to rely on cards to set foot in stores.

• This medium would enable ZunguZ to address new targets (youngsters) and favour banking inclusion. Merchants, for their part, would enjoy improved visibility through the social recommendation tool.

• In June, ZunguZ partnered with the online microcredit specialist GetBucks, to let its users borrow up to 500 rands (slightly less than 50 euros) through Facebook, for the first time.