Corporation Bank Ltd. has launched a mobile wallet to enable its customers to make purchases with their mobile handsets, a spokesperson for the Mangalore-based bank tells PaymentsSource.
Holders of savings and checking accounts at the bank may use the service, called ypaycash, to transfer up to 5,000 rupees (US$112 or 78 euros) to their mobile wallets once they download them to their phones.
“To make a transaction, the customer keys in the amount to be paid after logging in to the application,” the spokesperson says. “This will automatically generate a distinct barcode on the mobile screen.”
To complete the transaction, the merchant logs on to the bank’s payment application on his phone, and then scans the barcode using his own mobile phone’s camera. After a processing delay of a few seconds, the transaction gets completed once the bank’s server validates and confirms the transaction.
“A text message is then sent to both customer and merchant informing them of the payment and account balance,” the spokesperson says.
Chennai, India-based technology provider eMudhra Consumer Services Ltd. developed the entire system. Consumers pay nothing to use ypaycash, but merchants will pay the bank and eMudhra up to 1.5% of the sale. The bank expects to distribute 10,000 mobile-payment applications to merchants and have 1 million customers signed up to use ypaycash within 12 months, the spokesperson says.
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