July 1, 2009
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News: Citibank India Launches Tap and Pay
Citibank credit card holders in Bangalore have a special treat coming their way. If they are a Vodafone cell customer and use a Nokia 6212 cellular phone, they will have the capabilities of converting it to a cell phone/credit card. The new technology called Near-Field Communications (NFC) is the latest technology with a contact-less credit card payment mechanism. Citibank announced that it will be testing the new technology in Bangalore for six months before rolling it out to other markets. Citibank calls the new program "Tap and Pay." The NFC allows the Nokia 6212 customers to tap their phone on a compatible reader positioned at the point of sale (POS) to pay for goods and services. The process does not require customers to swipe their card thus eliminating a major possible interception of its information.
Near-field Communications is wireless connection technology for use in short range communication and enables the exchange of data between two separate electronic devices. It combines the interface of a smartcard and a reader into a single device which can be embedded into the cell phone and is compatible with existing NFC devices in use for public transportation and credit card payment. The NFC application also includes the capabilities of transferring other data such as electronic business cards. In a recent press conference, Citibank representatives stated they have partnered with Nokia, Vodafone, MasterCard, and ViVOtech in developing the mobile network in Bangalore. The Nokia 6212 phone has already been embedded with the NFC chip and MasterCard is contributing its PayPass contactless payment infrastructure. ViVOtech will be providing the new technology and software that will enable Citi's credit card customers to use the Tap and Pay program.
As Citi India has 2.5 million credit card holders in the country. Of the 400,000 residing in Bangalore, 20,000 are customers of Vodafone and using the Nokia 6212 phone with the embedded chip. The bank has signed up 500 merchants citywide to test the new program. Citibank expects to roll the program out worldwide if the six month trial is successful. Meanwhile, Citi India MasterCard customers can visit their Nokia store for additional details and to sign up for the program.