State Bank of India (SBI) has launched the mVisa, a mobile-based payment solution. The mVisa will help customers make payments through their smart phones by simply scanning the unique merchant QR (Quick Response) code at merchant outlets.
This a nice, fast and unique method to facilitate payments and competes with several other banks who have set up similar mobile based payment solutions.
One of the most important features of the mVisa is that it eliminates the need to swipe the physical card at the point-of-sale (PoS) machine.
Speaking at the launch, SBI Deputy Managing Director (Corporate Strategy & New Business) Manju Agarwal said that 26 million SBI customers are on internet banking platform and only six million customers are on State Bank anywhere.
There is a gap of 20 million and "we can migrate them all to mVisa", she said.
mVisa service is a Bank agnostic and an interoperable low cost solution. Any Bank mVisa customer can transact on any mVisa merchants and likewise any mVisa merchant can accept payment from mVisa customers of any bank.
mVisa, the payment solution will enable SBI customers to pay by just scanning the quick response code at the merchant outlet or by using the merchant's mobile. This is really as simple as it gets and that too without the need to carry a card.
Another interesting aspect is that the customer's debit and credit cards would be linked to the mVisa application, thus enabling payments to happen in a more secure manner.
The bank has already begun the process of starting to see how the response is. In the first phase, State Bank of India has introduced the application in Bengaluru where a sizeable number of merchant establishments are using it.
Over a period of time the bank intends to expand the same more rapidly, taking the unique features across the country.
Many advantages of mVisa
There are also many other advantages of cashless and card less transactions, including no worry of fraud and losing these cards. Of course, convenience is a big aspect of all of this.
As the largest bank in the country in terms of customers and branches, it is a welcome move from State Bank of India.
Some other private lenders like Axis Bank and ICICI Bank have already introduced similar application products.