YES Bank's mobile payment service

Private sector lender YES Bank has launched a mobile point of sale (mPOS) service allowing merchants to use a mobile device as a payment mechanism. Under this service, the merchants can use a mobile phone-based GPRS connectivity to facilitate debit or credit card payments. For this, the mid-sized bank has developed mPOS card reader device ‘Dongle’ that can be inserted into any mobile phone to access the application of the bank. The merchants can buy the Dongle for Rs 2,000 and incur a rental in the range of Rs 250 to Rs 500 on and additional integration over and above the merchant service fees. “This is largely targeted at any merchant that requires home delivery service for payment collection especially high-end corporates, insurance agents, restaurant chains and e-commerce platforms among others offering cash delivery,” said Chitra Pandeya, Senior President, Cards and Direct Banking. According to a report, about 60-70 per cent of the sales transactions are on cash on delivery basis. The bank has already tied up with an insurance company and looking for further tie ups which are likely to be announced next week.