PayMate India Pvt. Ltd. has signed a deal with India-based telecommunications firm Tata Indicom and Mangalore-based Corporation Bank to launch a person-to-person mobile funds-transfer service in India, the India-based mobile-payments provider said this week.

The "Green Money Transfer" service enables consumers to send or receive funds instantly via mobile phones. "We have launched the service to enable the large unbanked population of the country to send and receive money across urban and rural India," a spokesperson for PayMate tells CardLine Global. "This service is a purely text- and [interactive voice response]-based service" that works on any handset and through any mobile operator.

Consumers, who use personal identification numbers to authorize transactions, can send up to 5,000 rupees (US$107 or 72 euros) per transaction. "The sender enters his [PIN] to authorize the transaction and gets a transaction code on his mobile that is to be conveyed to the recipient," the spokesperson says.

The recipient then can then go to the nearest registered merchant location and share the transaction code. "The received then has to enter his [PIN] to verify the transaction and receive the cash," the spokesperson adds.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.