Software services company Tech Mahindra Ltd, which got a mandate to start a payment bank from Reserve Bank of India’s (RBI) in August last year, has launched an electronic wallet called MoboMoney on Wednesday. MoboMoney is a prepaid wallet issued in the form of a NFC (Near Field Communication) contactless tag that could be used to ‘Tap N Pay’ for goods and services.
The contact-less wallet, MoboMoney will allow consumers to complete online as well as offline transactions, including payments at grocery stores, tea vendors and restaurants that accept only cash. The company claims the platform allows transactions as low as Rs.1.
MoboMoney is based on NFC (Near Field Communication) technology which allows radio communication between two NFC enabled devices. Even a non NFC-enabled device can be used to pay for buying goods, and can just tap their MoboMoney tag on the merchant point-of-sale to make payments. During the transaction, the two tags will have to be tapped once. The merchant will enter the amount which has to be debited and then the traction will happen automatically. The process eliminates the need for pin, and two-factor authentication required for credit or debit cards, making it a much faster process compared with other prepaid wallets. The cash which remains unused can also be retrieved into the linked bank account of the user.
Customers can load money onto the MoboMoney wallet via credit card, debit card or net banking which can then be used to pay for over-the-counter payments, recharges, make bill payments, as well as pay online.
The company plans to focus on the top six metros of country over the next 12 months; and aims to have at least one million merchants accepting MoboMoney over the next five years, reported by ET.
Earlier this week, Micromax Informatics Ltd too stepped into the payments space by introducing its own mobile wallet in partnership with mobile payments company TranServ.