In just one year, Virgin Money has amassed over 400,000 users for its own digital currency platform Virgin Money Spot.
The cash-less application allows South African residents to pay at various stores across the country, including Burger King, Vida e Caffe and Hungry Lion.
Virgin Money Spot
Virgin Money Spot is strikingly similar to Standard Bank’s Snapscan, except that the digital currency is not directly linked to a user’s bank account. Instead, customers transfer money from their bank account to the platform. It is then converted into its own digital currency, Virgin Tokens. With Virgin Tokens, customers have an option to make secure and contactless payments on their mobile phones. Merchants, on the hand, receive their payments in real time without going through intermediaries.
Each Virgin Token is pegged to the rand on the ratio of 1:1. Customers are also charged zero fees to transfer funds or make payments. It is also worth noting that Virgin Money generates revenue from the platform by charging commercial partners to use the application.
The Virgin Money cryptocurrency, a finalist at the Enterprise Blockchain 2019 Awards, was built and developed in South Africa. It was the only African entry to be recognized in the enterprise transformation category.
Andre Hugo, CEO of Virgin Money South Africa said:
“While the public may never realise the watertight sophistication of the blockchain technology powering the use of the app, they can be assured of tapping into a seriously innovative platform, internationally recognised for being secure.”
Zero fee account
Hugo further added that they are planning to extend the platform to other services such as credit cards and loans. In addition, customers will soon be able to pay bills, buy electricity and pay traffic fines directly from the application. He also revealed plans to introduce a zero fee transactional account by the end of this year, though the company currently does not have a banking license in South Africa.
Hugo concluded by saying that Virgin Money SA is targeting at least two million customers by 2021 as it believes South Africa will play a vital role in the growth of financial technology services.