Use your Mobile as a Credit Card

by CXOtoday Staff    Jul 01, 2009

Citi has launched the Citi Tap and Pay in Bengalore, thus bringing to India next-generation contactless credit card payments based on near field communications.

It has established a secure, scalable and interoperable mobile payments ecosystem in Bangalore in collaboration with Nokia, Vodafone, MasterCard and ViVOtech.

According to a press release, Citi Tap and Pay customers will use the new NFC-capable Nokia N 6212 classic phone. The phone will be pre-loaded with the Citi Tap and Pay application enabled with MasterCard s PayPass contactless payments technology. It will execute an Over-The-Air (OTA) download of Citibank MasterCard Credit card onto the mobile phone. The transactions require a PIN validation that ensures security. In addition to built-in security features, the contactless payment transactions will be automatically charged to a customer s Citibank MasterCard card account through the same payment network that processes traditional credit card transactions.

Vodafone is the mobile network operator (MNO) for the pilot service. MasterCard will offer its MasterCard PayPass contactless payment and security infrastructure. ViVOtech is providing the underlying technology, including the NFC wallet, the Over-the-Air (OTA) card provisioning software, the smart posters and the mobile coupon application in addition to the contactless readers that participating merchants will use to accept payments.

The launch will enable mobile users to use their mobiles as credit cards. The technology will allow customers to tap their mobile phone on a contactless reader at the point of sale to pay for purchases, eliminating the need for the traditional swiping of credit cards. The service also does away with the need for customers to send SMS or incur mobile data charges to make these payments, according to a press release.

GK Chakrapani, director, Corporate Business Development, Nokia India, said, The core NFC strategy is to provide market leading devices for consumers and develop services that add value to the consumer experience and allow the NFC ecosystem to evolve. Nokia believes that NFC has the potential to be a disruptive technology, enabling a human way of interaction, transforming everyday tasks, making things easier, more intuitive and more effective.

Rajesh Dongre, COO, Mobile Commerce, Vodafone Essar, said, "We hope this pilot will provide a new dimension to making electronic payments and prepare the ground for secure, large-scale, SIM based sustainable deployment of NFC-enabled payments based on internationally standardized NFC technology, adding more choice and hence more value to our subscribers."

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