The new update for the SBI Card app will enable customers to make payments by just tapping their smartphones at PoS (Point of Sale) terminals.
To make cashless payments faster and more convenient, State Bank of India (SBI) is working with GE Capital to allow contactless payments at PoS terminals.
As per media reports, the move will make cashless payments easier and more widespread. It is a step towards making cashless payments easier by allowing seamless payments at PoS points.
What Is Contactless Payment?
Contactless Payment means payment made without the need to swipe or insert a card in the card machine. In case of SBI Cards, customers can make payment by simply tapping their smartphones at PoS terminals. The technology is based on Host Card Emulation (HCE), and the app has the provision for dematerialization of the card.
Smartphone Is The New Card
All SBI cardholders can start using their smartphones to make payments digitally. With the new proprietary contactless payments method, the new updated app will be designed to facilitate the virtualization of the card. Your smartphone will be your card, and the app will make payments using near-field communication (NFC). It is being expected to be launched around next month.
Second Largest Card Issuer in India
With over 50 lakh users, SBI is the second largest card issuer in the country, second to HDFC. State Bank of India (SBI) partnered with GE Capital back in 1998 aiming to develop a robust credit card business in India, and since then, the joint venture has done pretty well in the sector.
Demonetisation has played a major role in pushing cashless payments by forcing people to go cashless. Before demonetisation, the volume of cards was nearly 60,000 cards per month, which increased to over 100,000 cards per month post demonetisation. It has now has grown to around 200,000 cards per month.
Plans of Expansion
With the new Host Card Emulation (HCE) technology based contactless payments app, this is one of the steps in SBI’s plan of expanding their customer base. SBI Cards is keen on investing in infrastructure and forging new partnerships.
SBI recently partnered with Samsung Pay to support NFC payments via Samsung devices. The new contactless payments at PoS terminals surely will be a big hit among its user base!