[AMA] I am the CEO of DiviPay. Ask me anything!

Hi there,

My name is Daniel and I'm the CEO of DiviPay.

DiviPay lets you instantly create virtual cards that keep you in control of your money. DiviPay virtual cards are powered by Mastercard and can be used to protect yourself from online fraud, stop unwanted subscription fees and spend abroad without paying any transaction fees.

A lot of our users have originated from Illumination's post: https://www.ozbargain.com.au/node/329572 so we thought it would be helpful to open up a direct line of communication with you all.

Also, if you're interested, Illumination interviewed us about some of the technical aspects of the business on his blog:

https://www.thebulgingwallet.com/home/2018/3/28/interview-wi...

AMA

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Comments

  • +44 votes

    What are your thoughts on the current situation and escalating tensions in the South China Sea?

    • +60 votes

      Unfortunately I don’t believe I’m educated enough on this topic to provide a good response.

      • +2 votes

        This is a more intelligent answer than any of the others.
        It's very important to know what you don't know.

        On another note, what is the legal situation of these cards under Australian Law? I was under the impression that we lost the prepaid/one use cards previously due to illegal activity?

    • +4 votes

      It's a tough one. Many countries claim sovereignty over different regions. China has basically used its United nations security power to develop the region without recourse. The international community says no. China says yes.

    • +15 votes

      Hijacking to share some of my positive experiences with DiviPay.

      I've now used DiviPay quite extensively and I'd like to give some examples of how I've been able to use them (in a more summarised/succint comment):

      • DiviPay waive foreign transaction fees. This may not mean much if you hold a 28 Degrees card or similar, but it means (as billybrown described in his comment) you can earn Credit Card points and get foreign transaction fees waived. There aren't too many cards in the market that offer such a service, and this allows you to use any Visa/Mastercard that earns you points (giving you more point earning options)
      • Payments to ATO - they have a 0.76% surcharge on Visa cards, but only a 0.4% on Mastercards.. so what did I do? I used a Visa card to fund a DiviPay card (which is a Mastercard) to pay the ATO!
      • Reasonably efficient way of putting Prepaid Visa Cards together to make one larger card
      • Way to artifically extend the expiry of these Prepaid Visa Cards
      • Used it overseas for purchases in Japan, Malaysia, Singapore, Taiwan, and websites like Gearbest, Aliexpress (that charge in USD)
      • "Slutting" subscription services (e.g. Netflix trials)

      Good to see them getting so much love from Ozbargainers!

      • +2 votes

        FYI,Prepaid VISA(Vanilla) or MasterCard(Coles Gift) only incurs 0.15% surcharge when pay ATO.

        Thank you for letting me Divipay is not the best way to pay ATO.

      •  

        ATO surcharges people? No wonder people love the black economy.

        •  

          What? Ato doesn’t accept cash.

          Ato is just recouping the charges made by these companies.

          It’s free to direct debit, but people want points or interest free periods.

        •  

          @cloudy: and what's wrong with that.

          I have an offset account for my commercial property so I would like to hang onto my funds saving me interest for as long as possible.

        •  

          @daft009:

          Who doesn’t? If you want the time value of money pay the surcharge. Nothing is free, the credit card companies aren’t providing interest free periods for free. They are charging merchants, the ato isn’t taking fees just because some people want this free service.

          Very fair, if more merchants could be more transparent in passing credit card fees on they would not nearly be as popular.

          I’ve wrote about this before, people who pay by cash or DD subsidies credit card users.

        • +4 votes

          You can pay by bank transfer or BPay,no surcharge.

        •  

          @cloudy: I'm happy to pay the surcharge. I accept this as a cost of doing business.

          I am not anti-surcharge. I am happy to pay surcharge, keep the cash longer & earn points.

          I love it! :) as I'm meeting my obligations and getting something a benefit as well ;)

        •  

          @daft009:

          Yea thats cool.

    •  

      Sorry, I forgot my socks.

    •  

      Did you forget your socks yet again?

  • +9 votes

    Who are your direct competitors and what makes you a better choice than them?

    • +8 votes

      We classify our direct competitors as primarily falling into one of the following categories:
      • Fintech payment products e.g. Paypal
      • Neo or Challenger Banks
      • Physical prepaid card products
      • Traditional Banking

      We differentiate from these competitors as the only consumer virtual card product currently in the Australian market that is focused on protecting a user’s security and privacy. DiviPay allows you to instantly create and load an infinite number of virtual cards that can be spent on any online checkout.

      Unlike PayPal, who we believe now have a convoluted value proposition, the DiviPay solution can be accepted anywhere Mastercard is accepted, giving us greater reach. We are also working on a mobile payments solution, which will allow DiviPay virtual cards to be spent in-store.

      There are a number of Neo Banks entering into the Australian market, however we are focused on providing unique security features that will better protect a customer’s privacy and security. We are building out a range of transactional controls and decisioning logic that will provide the consumer with enhanced security measures.

  • +1 vote

    What do you do?

    • +2 votes

      Hi, DiviPay is a digital wallet and browser plugin that protects your privacy and prevents online fraud and theft by issuing you a unique virtual Mastercard for every purchase. DiviPay’s virtual card logic empowers customers to spend online with total peace of mind by allowing them to set spending and merchant level controls.

      •  

        Isn't there a maximum number of virtual mastercard #'s that can be generated?

        •  

          Hi, there is no maximum amount of virtual cards that can be created. Our users are free to generate as many cards as they would like.

        •  

          @divipay:

          Sorry I meant since Mastercards are 16 digit numbers, there must be a limit.

          #### ####

          leaves 9,999,999,999,999,999 possibly comibnations to use. But since the IIN is the first 6 digits, that leaves 9,999,999,999, there's also the limitation of the Luhn algorithm verification which again limits the possible numbers I believe down to 999,999,999.

          Still a big number, but there is a limit.

          If everyone is generating virtual cards this limit might be hit.

          Just something to think about

        • +1 vote

          @thord: This is correct but remember the cards also contain an expiry and 3 digit CVV. At some stage the account number could be theoritically be recycled but it will be paired with different expiry and CVV.

        •  

          @divipay:

          Very true, just thought I'd do the math for my own interest,

  • +8 votes

    I saw the interview post when illumination wrote it up.
    I was really impressed!

    My question is, why did AmEx acceptance get dropped? That's the one reason why I haven't jumped on DiviPay yet. If/when you bring it in, count me in as a lifelong customer (that's gotta be worth it, isn't it?)!
    Also illumination recommends you guys so that is awesome too.

    • +2 votes

      Hi, Unfortunately AMEX provided too expensive for us to process. We are looking at implementing more and more ways to fund cards. AMEX is always on the radar but will come down to whether it is commercially viable for us to offer it.

  • +8 votes

    I read about divipay, and I would like to know what are the hidden charges to use the service.

    From divipay website, there is no mention about fees and charges, not even in FAQ. I guess I am the first one to ask this question then. :)

    •  

      My guess (please correct me if I'm wrong divipay):
      They make a commission off each use of the card, as the merchant that processes the card has to pay a fee (the Interchange fee), a portion of which will go to divipay and the rest goes to MasterCard.

      •  

        Well, back in Sept 2017 comments, there will be a 2% funding fees after the beta period, and it was stated in the T&C at that time. However, I can't find that line in the current T&C, so I am not sure whether they have changed any decision since then.

        At that time, divipay (not sure whether it was Daniel who made the comment) commented that they were reviewing the fees structure.

        For me, that 2% funding fee is the deal breaker.

        •  

          2% is very steep considering the actual benefits of having random card numbers is negligible. Sure, you can be a victim of fraud, but your bank / mastercard already offer fraud protection in that case and it is almost always very easy to resolve.. No way would I pay 2% or even 1% for the gimmick of having a virtual card.

    •  

      Hi, We don't have any hidden charges and will always be completely transparent if/when we introduce a fee structure. We are currently expirementing with providing a set of premium features which can be accessed as part of a monthly subscription.

  • +1 vote

    Can divipay be used to purchase cryptocurrency without getting slugged a 3% 'cash advance fee' or 'international conversion' charges. In other words, if I bought a $500 divicard could I then by $500 worth of crypto from any exchange that accepts mastercard? (minus exchange fees of course)

    Thanks

  •  

    Would it be possible to use one of these virtual cards to set up a US PayPal?

    •  

      Hi, a number of our customers have attached DiviPay cards to their PayPal accounts. Im not completely sure of the requirements for a US PayPal account but the DiviPay card can be added as a payment mechanism.

  • +1 vote

    2 questions:

    1 - How is it not treated as a cash advancement when loading funds as other providers?

    2 - This one you are free to decline to answer, but curious to know what's in it for you offering this as a free service?

    • +1 vote

      1- we have worked with our payments provider to ensure that cash advance fees are not associated with the load of the DiviPay product.
      2- to answer this question we are currently expirementing with providing a set of premium features which can be accessed as part of a monthly subscription.

  •  

    Are you single?

  • +3 votes

    Do you believe in love at first sight ?

  •  

    where is your head office ?

  • +6 votes

    If you were stuck on an island with Trump and Turnbull and had to kill one and mate the other survive who would you choose for each ?

  • +1 vote

    So if you like say a XiaoMi in Gearbest priced at USD$29.99, you would top up this Divipay thingy and pay the XiaoMi using this Divipay "credit card" in real time.

    Is that how this thing works? THat would be nice to avoid 3% foreign currency fee but paying USD using AUD, what sort of FX Rate will it be using?

    •  

      Yes correct. You can create a virtual card and top up directly from our online platform. You would then use the card to make the purchase on Gearbest and save on the fx fees. Gearbest is one of our most popular merchants. We have also recently released a browser plugin for chrome which allows you to access your cards at any time.

      •  

        can I load Divipay into Android as Android Pay?? And pay for items in store?? Not sure why I would want to do that…but still asking

        •  

          They're in the process of enabling this and it's one of their priorities, but no you can't do that at the moment.

  • +1 vote

    I have been using this service for over a month now.
    The service from Daniel has been exceptional, and I can highly recommend them.

  • +1 vote

    This service seems really interesting, I remember reading about similar services long ago.

    Is it possible to link a prepaid credit card to Divipay?

    How do you make money, if you're fee free?

    Do the linked cards need to be Mastercard?

    Have clients ever used your service as a way to get free trials, but avoiding subscription traps?

    Will there ever be an instance where clients share a card number?

    Do the generated virtuals cards expire?

    Are you independent from Mastercard?

    Will BPay be an option to load funds?

    • +3 votes

      Hi THanks for your questions, my answers in order below
      1. Yes you can use a prepaid card to load funds to the DiviPay wallet
      2. we currently make a small fee on every transaction paid by the merchant called interchange. As mentioned above we are trialing different fee structures with our current customers.
      3. No, both Visa and Mastercard can be linked to your DiviPay wallet.
      4. yes definitely, the virtual card gives control back to the customer. Often its hard to remove your credit card from a subscription service so with DiviPay you can simple close the virtual card
      5. We have been working on a group payment or instant joint account product where users would have access to make a joint payment
      6. Yes, all of our cards currently have a 6 month expiry date. If funds are loaded onto a virtual card at the time of expiry we simply create you a new card with the available funds.
      7. Yes, we have a relationship with Mastercard but are not directly linked
      8. We are looking at multiple ways to add funds including BPay. Whilst this is on the roadmap we do anticpate it being another 3 months away.

      •  

        I guess another attraction of this card other than the 3% FX fee free is probably an intro to credit card for young users but acting like a Prepaid card so they can buy from internet as such.

        The only thing I can see a drawback is that if you take up this offer, no credit history will be established for that young users and so will never get a home loan lol :-) speaking loosely that is.

        Also no physical card so in practice, probably have this to avoid the fees and a prepaid card like Coles Mastercard as physicals.

        • +2 votes

          The only thing I can see a drawback is that if you take up this offer, no credit history will be established for that young users and so will never get a home loan lol :-) speaking loosely that is.

          Getting a credit card isn't going to help a young person to get a home loan. In fact, under Australia's current (nb. it is soon to change) credit reporting, having a credit card would actually be a negative.

          I happily got a home loan with 0 credit history. I did have a post-paid phone plan but that's it.

        •  

          @brezzo: Same, didn't even have a phone plan.

      •  

        Thanks I appreciate the detailed reply and willingness to take in questions! All the best to your service!

  • +4 votes

    Sometimes I want to consolidate $100 Only 1 VISA cards purchased from the supermakets into one card and spend it in one go.Will multiple prepaid cards added as the funding card in a short time be a security problem in your system?

    •  

      We do have a number of users aggregating cards like this. As each funding card needs to be verified so is not a security problem. In a handful of cases where our systems have been triggered we will ask customers for additional verification and then allow them to continue.

  •  

    I’m running about $300k monthly payments on central corporate credit cards. Occasionally the cards will get fraud and it’s a huge exercise to get the card changed.

    Are you considering opening up to corporates at (much) higher limits than your $1k?

    Obviously not expecting fee free in this scenario

    • +4 votes

      Hi, yes definitely this is something we are currently expirmenting with. It would be great to understand more about your use case, the problems you currently face and what your ideal solution would look like. Feel free to send me an email at daniel@divipay.com we would love to learn more.

  • +4 votes

    Thank you for AMA. Some questions:
    1. Can I set up direct debit on those virtual cards just like normal cards?
    2. What will happen if I have $950 on the card and a merchant tries to refund $100 to the same card?
    3. Where is your client data stored? In Australia, other country or on the cloud?
    4. I tried to sign-in via VPN (non Aust IP) but could not. If I signed up (not using VPN), will I be able to login, load funds using a non-Aust IP VPN ?

    Thank you.

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