Autumn 2007

A bid to attract online business from customers who don't want to pay for their goods online has been launched under the name PayOffline.

The idea is that you buy from participating web sites, but go round the corner to pay (in cash if you like) at a franchised payment centre. Since PayOffline is working with payzone.co.uk, an existing payment handling operator with a claimed 17,000 outlets already, that means there should be a payment centre quite close to most consumers.

This is a new twist on the kind of concept already offered by the voucher-based Ukash system. With Ukash, consumers buy a uniquely-number voucher first, then pay online by quoting its registration number. It is 'cancelled' automatically so that it can't be re-used, and you can even get 'change' in the form of lower-value replacement vouchers.

According to PayOffline, the are up to 5 million potential online shoppers in the UK who currently don't shop online for fear of fraud. It adds that there are also 4 million (not necessarily the same people) who don't have a bank account. Finally, it points out that a third of the adult population don't have a credit card.

The company claims that integration with online shopping carts is simple. Web site operators wanting to take advantage of the system have to register; the standard registration fee is £25, which includes 20 free PayOffline transactions, and fees range from 3 per cent plus 20p on transactions up to £1,200 to 1.25 per cent plus 20p at £50,000 and over.

The business is supported by Alliance & Leicester, and is working closely with alphyra UK, which operates the payzone network through local outlets such as convenience stores.

Prior to its autumn launch the service had already picked up support from a handful of organisations such as online shopping portal operators and shopping cart specialists - among them Actinic, Cubecart and InternetRetailer.biz.