You've been redirected from MobilePaymentsToday.com to PaymentsDive.com. In March 2021, Mobile Payments Today became a part of Payments Dive. For the latest payments news, sign up for the daily newsletter.

Indian Railways to begin mobile payments, ticketing

One of the world's largest railway systems is going mobile. According to the Economic Times of India, IRCTC, the subsidiary of the Indian Railways that handles ticketing, will begin offering train tickets via SMS messaging beginning in July.

To use the new service, rail riders in India will first need to register their mobile number and bank account information. Banks will then provide an identifying code, called a mobile money identification code or MMID, and password to authorize payments.

The SMS messaging system requires a rider to send information such as train number, destination and travel date.

"The sender will receive [a] transaction ID and then make payment through sending another SMS by typing 'PAY' followed by the transaction ID, MMID as received from the bank, and password," an official said in the report.

At that point the ticket is booked. Waiting in line for a printed ticket is eliminated, saving both time and paper.

There is a small fee for the service of around $.15 to $.25.

Indian Railways carry 9 billion passengers a year. IRCTC said that approximately 55 percent of tickets are sold at stations and 37 percent are sold online. 

Read more about money transfer/P2P.