While mchek and other mobile payment companies target the urban consumer, CashNxt (the site is not yet fully functional) is aiming at the branchless banking network and enables transactions using voice encryption.
CasnNxt uses a network of low-cost ATMs (manufactured by Vortex Engineering, Chennai), Smart Teller Machines (developed jointly by interns of IIT-Varanasi and SKIT, Jaipur), E-POS terminals, and a mobile and branchless banking gateway to offer services like cash withdrawal, depositing cash, printing cheque books, etc. The startup has partnered with banks in Kannur for their pilot project, which will commence from December, and has deployed 10 such kiosks. (source)
Basically, if you and vendor are part of CashNxt network, you can easily conduct transaction in simple steps – Merchant need to dial CashNxt’s IVR number, enter his secret pin, transaction amount and will hear a high pitch sound on his mobile. Customer will also need to follow the same step and all one needs to do is to dial the IVR, enter his/her secret pin and once you hear the high pitch sound, bring the phone closer to merchant’s – CashNxt will encrypt and decrypt the sound and the transaction is confirmed via sms.
The video demonstrates how CashNxt works: