Telecommunication firm Tata Indicom, the brand name of Mumbai-based Tata Teleservices Ltd., has signed a mobile-remittance deal with eSSecom Pvt. Ltd., the company announced Dec.15.

Under the deal, Tata Indicom will offer Bangalore-based eSSecom’s CellPay mobile-payment service to all of its postpaid mobile subscribers across the Indian state of Karnataka.

The CellPay service will be is available for Tata Indicom customers who are registered for mobile banking with the five banks that work with CellPay, a Tata Indicom customer service representative tells PaymentsSource.

To use the service, participants first create a personal identification number by calling the CellPay interactive voice-response service and registering their mobile-phone number. To make a payment, the customer sends a text message with the merchant’s identification code, the sale amount and the mode of payment to a pre-designated number. CellPay then sends the customer an automated call, which prompts him to enter his the credit card or bank account details and the PIN he chose when registering.

CellPay then validates the details, and the bank processes the transaction. After completing the transaction, CellPay sends both the customer and merchant a confirmation text with the transaction details. This service is available for all types of phones.

Conversely, the customer also may opt instead to use a smartphone application to enter the transaction details instead of using the interactive voice-response service. The customer would download the application, into which he will input the merchant’s identification code, the sale amount and the mode of payment. He also would enter his bank account or card details, along with the PIN to authorize the payment.

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