Paysafecard

Paysafecard is an electronic payment method for predominantly online shopping and is based on a pre-pay system. Paysafecard is based in Vienna, Austria and has been in existence since 2000. Exchanging cash for Electronic Money (for use online) is facilitated through paysafecard in Germany, Austria, Spain, Greece, Great Britain, Switzerland, the Netherlands, Belgium, Slovenia, Portugal, Czech Republic and Slovakia.

Since 2006 paysafecard has been involved with the eTEN programme [http://ec.europa.eu/information_society/activities/eten/projects/project_of_the_month/200707_paysafecard/index_en.htm (Project description) ] promoted by the European Union.

Advantages

Buying with cash at online stores is gradually becoming more commonplace with the emergence of services like Paysafecard. Historically, most web shops have only accepted card payments for online purchases. For the majority of online consumers, card payments are simple and convenient, while web shops are reassured by obtaining an immediate payment authorisation from the consumer's card issuer.

However, many consumers are concerned about entering their financial details online while shopping, and in some cases consumers simply don't have a credit card to use online. In these cases the ability to use cash online can be benefical to web merchants and their customers.

How it works

In order to purchase a Paysafecard in the UK, customers pay cash (£10, £25, £50 or £75) at any retailers linked to PayPoint, and receive a secure 16 digit PIN. In other countries Paysafecards are mostly available at newsagents, petrol stations, chemists or kiosks. When paying in an online shop, the user enters the 16 digit number and the amount tendered is deducted from the paysafecard balance. For larger sums it is possible to combine up to ten Paysafecard PINs.

Where it can be used

Paysafecards are normally sold as eVouchers (uniquely numbered receipts from in-store sales terminals) in Germany, Austria, Spain, Greece, Great Britain, Switzerland, the Netherlands, Belgium, Slovenia, Portugal, Czech Republic and Slovakia. According to paysafecard.com, there are over 100,000 such sales terminals [http://www.paysafecard.com/uk/personal/ready-to-buy-paysafecard/uk-sales-outlets/ Locations] .

They also claim over 2,500 webshops accepting paysafecard from across the world. These fall mainly into the following categories - online games/gaming, music download sites, telecoms services and now travel. Sky Europe - a low cost airline based in Slovakia, has recently started accepting paysafecard as a means of payment [http://www.skyeurope.com/en/about-us/press-room/press-releases.aspx/1789 press release] .

Financial Services Authority Register listing

Paysafecard.com Limited is an electronic money institution authorised and regulated by the Financial Services Authority in the United Kingdom [http://www.fsa.gov.uk/register/firmBasicDetails.do?sid=194647 FSA Register Details] (Register number: 475502). The Financial Services Authority’s Register can be accessed through www.fsa.gov.uk/register

Paysafecard is permitted to issue electronic money in all 28 European Economic Area countries under "The Financial Services and Markets Act 2000 (EEA Passport Rights) Regulations 2001" [http://www.fsa.gov.uk/register/firmPassports.do?sid=194647 FSA Passport Details] .

External links

* http://www.paysafecardal.com
* http://www.paysafecard.com/en/
* [http://ec.europa.eu/information_society/activities/eten/projects/project_of_the_month/200707_paysafecard/index_en.htm European Union - project description]
* [http://www.fsa.gov.uk/register/firmBasicDetails.do?sid=194647 FSA Register Details]
* [http://www.fsa.gov.uk/register/firmPassports.do?sid=194647 FSA Passport Details]

References

* Párhonyi, Róbert, study on micropayment systems: http://www.simpleweb.org/nm/research/results/publications/parhonyi/[e-mail]