Why PINS are Becoming More Important


January 21st, 2015 - Posted by Peter Cook

We all thought that PINS (called vouchers by many) were for calling cards or topping up prepaid mobile phones.  And with the slow death of calling cards, and other ways to top up prepaid mobiles, surely this would lead to the decline of the PIN.

No, no and no.

We see huge demand from financial services institutions who realise that the digital world lacks a very basic capability – how do you enable a consumer who has real cash use this cash to access digital services?  For instance, pay real cash into a digital wallet or to pay an online merchant for goods and services.

So, simple Use Case.  A consumer in Canada wants to buy goods from a web merchant.  The consumer goes to a Canada Post outlet, buys a Ukash voucher (which has a 19 digit PIN) via the Ezipin Canada service and then redeems the voucher at the payment page of the merchant.  During the redemption process, the merchant’s website will communicate with Ukash, confirm that the voucher has not been previously redeemed and then give good value to the consumer.  So, cash at the retailer becomes electronic currency via a PIN.

So, where is Novatti playing in this?  We have recently enabled some new service providers to generate PINS, manage warehouses of PINS, redeem PINS and distribute PINS via electronic distributors.  One such client is www.digipayvoucher.com.  The whole process of providing, managing and distributing PINS can be provided on a simple SAAS basis that can be set up in a few hours.

We have been doing this for many years in the telecoms world – with one client issuing and redeeming over 3,000,000 PINS per day! Yes, a country in Africa, where each PIN has an average value of about $1.50 and so nearly $1.5bn per year of value spread over a 1bn PINS.

So, as with many things in life, what is old is new.

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Peter Cook

CEO at Novatti

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