Mobile payments in India received a major boost on June 27 when Nokia India Pvt. Ltd., the Indian arm of the Finnish mobile handset maker, announced it would offer its Mobile Money service on all Nokia devices.
Nokia is the biggest handset maker in India based on sales market share of 31% as of the end of 2010, according to market research firm IDC India.
Nokia Mobile Money enables users to transfer funds to other users, withdraw cash at partner bank ATMs or at Nokia retailers, pay utility bills, and top up prepaid mobile phone accounts.
The service uses technology from U.S.-based Obopay, the mobile-payment service provider in which Nokia invested about US$70 million in 2009 (
Further, users will have the option of choosing and subscribing to either Union Bank Money or Yes Bank Mobile Money Services from their Nokia devices.
Nokia has worked with both Union Bank of India Ltd. and Yes Bank Ltd. over the past two years, first on a pilot basis and then a full rollout to offer these funds transfer services (
Users of the service first must register with their select bank and download the application to their phones.
After loading their accounts using cash at any participating retailer or Union Bank branch, they may transfer funds or make payments as desired.
To make a payment, or transfer, users must open the application on the phone, choose the participating beneficiary or biller, select the amount, and authorize the transaction by entering their four-digit PIN. For those whose handsets are unable to support the application, the companies will provide a text message-based version.
Under Reserve Bank of India rules, consumers may transfer no more than 50,000 rupees (US$1,095 or 820 euros) daily when using the service.
The service is still free for customers of both banks involved, but they eventually may decide to charge a fee, both banks had said at the time of the launch of their services.
