Atom Technologies, part of FTIL group (Financial Technologies India Ltd) has launched atom Cards, a mobile wallet/card product that enables one to swipe the mobile phone to make payments, much like a credit card (source)
- The credit card data will be stored in 2-D bar code format.
- After the credit card data is burned on the mobile phone (this is irrespective of the operator, but in collaboration with the card-issuing bank), the handset can be used instead of credit cards
- For making a purchase, all that you need to do is swap your mobile phone and provide the PIN number, just the way you do with your credit card.
To read the 2D-barcode, merchants would need a webcam (which can be obtained for as low as @ Rs. 200/)
As of now, the software will work only on Java enabled phones and Atom will provide the software free of cost to banks, merchant establishments and customers, but will levy a percentage of the transactions as its fee.
Atom is currently doing a pilot study with Axis bank (and it’s customers) and is in advanced stages of tying with other banks. As far as mobile wallet service is concerned, RBI is yet to give it’s nod on the service.
This surely is a disruptive idea. What do you think?