Airtel, ICICI Bank and VISA have jointly launched mChq, a credit card on a mobile phone. mChq is India’s first mobile-to-mobile payment option that enables Airtel customers and ICICI Bank Visa cardholders to pay for their purchases with their Airtel cellphones.
The service eliminates the need to carry physical cash for making a purchase and also does away with the need for a point of sale (POS) terminal since the mobile phone serves as a secure POS and a payment mechanism.
To process a transaction on the new technology a merchant sends a text message bill to the mobile of the purchaser, who then has 60 seconds to approve using their handset. Once approved, the bank is informed to carry out the fund transfer and electronic receipts are sent to the mobiles of both the merchant and buyer.
In the first phase, the service will be available to Airtel and ICICI Bank customers in Delhi and Mumbai, across 100 retail outlets, including departmental stores, restaurants and bookshops. After a three month exclusivity agreement Airtel and ICICI will be free to team with other organizations to expand the role out of the technology.
