Retail brokerage group Trading 212 announced on Friday that it has launched new ‘one time’ use payments cards.
A similar product already exists with some neobanks, notably Revolut. Sometimes called ‘disposable cards’, the end user makes one payment with the card, which is then scrapped, and the user gets new payment details in its place.
The cards are often used for e-commerce payments or other transactions where the user does not feel comfortable sharing all their details. If the merchant is indeed fraudulent in some way, they are unable to do anything with the payment details because they are immediately ‘deleted’ after the payment is complete.
Trading 212 is offering the product via a partnership with Paynetics, an e-money institution that is licensed in Bulgaria – where Trading 212 is based – and the UK.
The Trading 212 Group entity also owns a payments company in the UK, which was set up in June of this year. However, that company does not appear to be ‘live’ yet, in terms of performing a role within the business.