TL:DR – Konga and GTBank are doing an end-run around debit cards and Interswitch, at least for GTBank customers that shop on Konga.
Long version –
Konga and GTBANK have just turned on a very interesting payments feature. At checkout, Konga shoppers who use GTBank Internet banking can elect to not use their cards. Instead, they can now use the new “GTPay” option.
Selecting this option launches the GTBANK Internet banking platform in a modal window. The user logs in, selects which account they want to debit and authorises the transaction in exactly the way they would an ordinary GTBank Internet banking ttansfer.
Apparently, this was Konga’s idea, and they have been working on it for some time. The idea itself is data-driven. More than half of Konga shoppers use GTBank cards, as I have confirmed from a Konga representative.
The move is win-win, but the potential biggest winner here is GTBank. Although measured, there is nothing to suggest that it is exclusive to Konga, and there is nothing stopping them from rolling this out to to other merchants.
More about that in another post. Here’s an infographic that shows how Konga GTPay cardless works.
