Visa tests new mobile wallet service in India
Visa Wednesday announced the opening of a new technology development center in Bangalore, India, that it said will play a central role in the company's efforts to accelerate digital commerce globally.
As part of the opening ceremonies, Visa announced mVisa, a new mobile payment service that will be tested this summer with merchants across the Bangalore region and with customers of Axis Bank, HDFC Bank, ICICI Bank, and State Bank of India, according to a press release.
Here is how mVisa works:
- Consumers will be able to download the mVisa application to their smartphone or feature phone and securely link their Visa debit, credit or prepaid account to the mVisa application.
- Once activated, mVisa enables consumers to pay for purchases in stores and online simply by initiating a transfer of funds from their account to the merchant's account. Additionally, mVisa users will be able to pay bills and send funds to other Visa account holders.
- MVisa transactions are processed via Visa's global network, VisaNet, applying the scale, security and reliability of Visa to mobile payments in emerging markets. The service is designed to enable consumers to engage in secure, digital commerce, and more easily access funds in their existing bank accounts to make everyday purchases and pay utility bills.
- Merchants and billers benefit by offering consumers a more convenient and secure way to pay, and are instantly notified via SMS text message when a payment has been received.
- Starting in September, mVisa will be available to 20,000 merchants in the greater Bangalore region.
Visa said that mVisa is one of several initiatives the company has undertaken to accelerate the global migration from cash to digital commerce. The company is increasing its recruitment efforts, adding 2,000 full time employees who will work in development centers in India, Singapore and the U.S.
"For the past 50 years, access to Visa's technology environment was tightly controlled and available only to developers at financial institutions and merchants — a strategy that helped drive the migration from cash to electronic commerce in a secure manner," said Rajat Taneja, EVP of technology at Visa. "Today, as commerce shifts to digital environments where consumers can make secure purchases using mobile devices, it is critical that we open up Visa's network and make it easier for developers globally to access our payment platform — making secure Visa payments a standard feature of mobile applications."