Union Bank of India Ltd. is partnering with Nokia India Pvt. Ltd. to launch a mobile-based payment service, a spokesperson for the Mumbai-based bank tells PaymentsSource.
The service, dubbed Union Bank Money powered by Nokia, launched first in the National Capital Region, the bank noted in a March 18 press release. Within the region, the service is available to customers in Gurgaon, and it will be available to customers in New Delhi, Faridabad and Noida in the next few weeks, the spokesperson says.
The service, designed for unbanked urban and rural consumers, will be usable with all handsets and all carriers, the spokesperson says. Union Bank and Nokia will market the service using some of the 200,000 Nokia handset retailers and Union Bank’s 3,000 branches of across India, he says.
The service will enable users to transfer funds to other users, withdraw cash at Union Bank ATMs or at Nokia retailers, pay utility bills, and top-up prepaid mobile phone accounts, a Union Bank representative tells PaymentsSource.
The service is similar to the mobile-payment services Bharti Airtel Ltd. launched with ICICI Bank Ltd. and Vodafone Essar Ltd. launched State Bank of India Ltd. in January (
Users of the Union Bank service first must register with the bank and download the application to their phones, according to a bank representative. After they load their accounts using cash at any participating retailer or Union Bank branch, they can then transfer funds or make payments as desired, he says.
To make a payment, or transfer, the user will have to open the application on the phone, choose the beneficiary or biller, select the amount, and authorize the transaction by entering their four digit PIN.
For those whose handsets unable to support the application, the companies will provide a text message-based version in which users may use text messages to initiate transactions.
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 will be free for all new customers for the first six months, after which consumers will pay 200 rupees to register. Users of the service pay no transaction fees for payments, but they will pay 100 rupees to withdraw cash from Union Bank ATMs.
Nokia’s Mobile Money Service is based on a platform developed by U.S.-based Obopay Inc., in which Nokia is an investor.
Union Bank is not the first financial institution in India that Nokia has signed on with for the service. It has been working with Mumbai-based Yes Bank Ltd. since the middle of last year (
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