According to a release issued by Bharti to the Bombay Stock Exchange on Monday, this is the first mobile-to-mobile payment option, which enables Airtel customers (Bharti's mobile service users) and ICICI Bank Visa cardholders to pay for purchases with their Airtel mobile phones.

"The service eliminates the need of carrying cash and also does away with the need of a point of sale terminal since the mobile phone serves as a secure POS and a payment mechanism. In the first phase, the service will be available to Airtel and ICICI Bank customers in Delhi and Mumbai across 100 retail outlets," the release added.

While Airtel customers subscribing to the service will be issued a new SIM card free of cost, ICICI Bank card holders will be issued an add-on card on the basis of their existing ICICI Bank-Visa credit card.

Akhil Gupta, joint managing director of Bharti, said, "Innovation has been a key driver for us at Bharti. It has been instrumental in Airtel taking a leadership position and has also helped us sustain the growth that the company is witnessing."

"With the launch of this new service, mobile phones now turn into virtual wallets and there is chance that the entire concept of payment may change. The product is a boon for customers, financial service providers, retailers and mobile service providers," he added.