State-run Corporation Bank today launched a mobile wallet which makes it possible to make purchases using a mobile handset. Under the scheme, christened ‘ypaycash’, an account-holder can pay for purchases through the mobile handset, provided the merchant has the system installed. The service, which comes free for Corporation Bank customers, can be availed by asking the Bank to transfer up to Rs 5,000 from a savings or current account to the mobile wallet.
“A special application is installed on the customer’s mobile phone through which a transaction is completed. The customer keys in the amount to be paid after logging-on to the application,” Chief Executive of e-mudhra (which has developed the application), Ravi Jagannathan told reporters here.
The customer gets an automatically generated and distinct barcode on his mobile screen after keying in the details, and the merchant then scans it using his own mobile phone’s camera.
“Within seconds, the payment gets done and the appropriate amount is debited from the customer’s mobile wallet…this is a very secure, cost-effective and scalable solution,” he said.
The Bank’s CMD, Ramnath Pradeep, said the bank has not incurred major investment on the product and merchant establishments will be charged a fee of up to 1.50 per cent of the transaction.
The bank aims to have 10,000 mobile payment terminals and over 10-lakh customers in the first year.