Credit card ‘first’ to benefit Nam poor

NAMIBIA’S cellular phone company, Mobile Telecommunications Ltd (MTC), made a first in Africa by joining forces with a commercial bank to launch a credit card, mainly targeting the poor.

The new co-branded MTC Visa credit card – which can be used anywhere in the world – was a collaboration between the cellular company and Standard Bank Namibia in association with Visa International. The card is designed for MTC subscribers, especially those who do not fit the traditional models of those who can get credit cards, due to being low income earners.To acquire the MTC credit card, which was unveiled in Windhoek yesterday, a person has to be an active mobile phone user, earn a minimum of N$1 000 a month, have a bank account and be at least 21 years old.Applicants will be subject to the normal commercial bank credit ratings.Interest rates would be similar to other cards Besides the ability to use the MTC Visa credit card at establishments around the world, customers will also enjoy a special promotion of two per cent of all expenditures paid back to them as airtime.MTC Managing Director, Jose Ferreira told those present at the launch that the new product represented a “significant evolution” in dealing with the unbanked and under banked communities.Standard Bank Managing Director Theo Mberirua said this public-private partnership was meant to benefit a large proportion of the population, comprising mostly the poor.”The MTC credit card, in association with Standard Bank, will give those Namibians that have in the past not qualified for a credit card, a chance to receive a credit card.This card provides Namibians with the means to have funds available at times when they need it most and additionally offers great benefits…,” said Mberirua.Graham Gunn of Visa said in this new age era, electronic and card payments were more secure and efficient transactions and reduced the need for cash.”Card use encourages an increase in consumer spending, which has a multiplier effect on the economy and economic growth.”In Namibia the driver behind banking the unbanked is a social one, but we must not lose sight of the fact that it can also bring swift economic benefits,” said Gunn.The gathering heard that regional mobile phone powerhouses Vodacom and MTN would also enter into similar deals next month.MTC and Standard Bank will be engaged in a publicity drive to ensure that the public gets information and knowledge about the new product and how to apply for a credit card.The card is designed for MTC subscribers, especially those who do not fit the traditional models of those who can get credit cards, due to being low income earners.To acquire the MTC credit card, which was unveiled in Windhoek yesterday, a person has to be an active mobile phone user, earn a minimum of N$1 000 a month, have a bank account and be at least 21 years old.Applicants will be subject to the normal commercial bank credit ratings.Interest rates would be similar to other cards Besides the ability to use the MTC Visa credit card at establishments around the world, customers will also enjoy a special promotion of two per cent of all expenditures paid back to them as airtime.MTC Managing Director, Jose Ferreira told those present at the launch that the new product represented a “significant evolution” in dealing with the unbanked and under banked communities.Standard Bank Managing Director Theo Mberirua said this public-private partnership was meant to benefit a large proportion of the population, comprising mostly the poor. “The MTC credit card, in association with Standard Bank, will give those Namibians that have in the past not qualified for a credit card, a chance to receive a credit card.This card provides Namibians with the means to have funds available at times when they need it most and additionally offers great benefits…,” said Mberirua.Graham Gunn of Visa said in this new age era, electronic and card payments were more secure and efficient transactions and reduced the need for cash.”Card use encourages an increase in consumer spending, which has a multiplier effect on the economy and economic growth.”In Namibia the driver behind banking the unbanked is a social one, but we must not lose sight of the fact that it can also bring swift economic benefits,” said Gunn.The gathering heard that regional mobile phone powerhouses Vodacom and MTN would also enter into similar deals next month.MTC and Standard Bank will be engaged in a publicity drive to ensure that the public gets information and knowledge about the new product and how to apply for a credit card.