Reliance Communications and HDFC Bank on Tuesday announced the launch of country's first virtual credit card.
The virtual card will do away with the need to physically carry the credit card and would allow mobile phones to double as a payment instrument.
Reliance mobile customers can now participate in the mobile credit card evolution. This is another step towards making mobile commerce a reality in India, Mahesh Prasad, President (applications group), Reliance Communications, told reporters in Mumbai.
Presently, the facility would be available to HDFC Bank credit cardholders, who are also Reliance mobile subscribers.
A top bank official said HDFC bank has about 35 lakh (3.5 million) cardholders and given that RComm has about 40 per cent market share in the mobile market an estimated 15 lakh (1.5 million) people would be able to use the new facility.
The tie-up between the bank and Reliance is not exclusive and over a period of time other banks and other mobile operators would also launch this facility. It could become a preferred way of making payment in future as it does away with the risks associated with carrying cards and revealing its details at merchant establishments.
Security and convenience are two major benefits of the new facility, he said. Internationally, this technology was introduced only a couple of years ago and has been a great success in countries like South Korea, Japan and Philippines, Prasad added.
