HDFC Bank and Reliance Communications have come together to introduce the virtual mobile credit card facility for the first time in India. Under this facility a Reliance mobile phone will also function as a credit card and the mobile number will act as a credit card number.
The facility will also have a transaction passcode and in case of mobile phone theft there will be no financial liability on the user.
The technology introduced a couple of years ago, in the global markets, has done very well in countries like Philippines, Japan and South Korea.
According to Mr. Mahesh Prasad, president of the applications, solutions and content group at Reliance Communications, this facility has the potential to become very popular with the customers. It is not only a convenient payment option but also does away with the risks of carrying credit cards and disclosing its details at the cash counter.
"Initially, the service would allow card holders to make payments to merchant partners like Adlabs, Yatra and Billdesk, with the list to be expanded to other partners following the roll out," Mr. Prasad said.
HDFC Bank’s country head for IT, CN Ram said that this facility will be an alternative payment option for their customers who don’t like to reveal their credit card details online.
He further added that they do not have any exclusive contract with Reliance Communications and in future will be looking for tie ups with more mobile companies for similar services.