HDFC Bank and Movida, a joint venture between Visa and Monitise, have launched a mobile payment service that allows customers to make payments through their mobile phones using their debit/credit card registered with the bank.
Movida provides technology that enables using mobile handsets as the core device for making electronic payments.
These include bill payments (insurance premium, electricity bills), mobile top-ups and movie tickets. Payments to all companies that accept electronic payments can be done using this service.
The service can be used across all mobile operators and all kinds of mobile handsets.
There is no extra charge for the bank's customers.
The mechanics
The service uses menu-based USSD mobile technology. USSD is similar to SMS. But unlike SMS which can be stored for several days, USSD transactions occur during the session only.
HDFC Bank cardholders (debit, credit and prepaid) — Visa or non-Visa — can assess the service via USSD over Movida's secure connection.
Only cards and mobile numbers that are registered with HDFC Bank can be used for this service.
For security reasons, customers will be required to key in a PIN number (similar to other online payments) and will be asked a query for verifying information that only the bank and the customer know.
Movida's technology runs on the existing payment infrastructure. So, nothing new needs to be done from the bank's end, said Mr Naushad Contractor, President, Movida.
Multiple tie-ups
The company has tied up with all telecom companies, most large multiplexes and electricity companies, for enabling mobile payments, he added.
Mr Rahul Bhagat, Head-Retail Liabilities and Direct Banking Channels, HDFC Bank, said that the bank has 5.6 million credit cards and 14 million debit cards.
This service will encourage customers to use their cards more.