NCPI Introduces Interbank Mobile Payment System For Merchant Payments

Interbank Mobile Payment System, or IMPS, has been approved by National Payment Corporation of India. This is revolutionary in more ways than one, as it offers 24×7 instant interbank electronic fund transfer through mobile phones. Now you can pay for your grocery-bills (and other similar micro-transactions) with your mobile, and not necessarily using a smartphone, in fact any regular phone having the SMS superpower will do.

interbank mobile-payments service IMPS

The probability of IMPS enjoying success in India is great as the set transaction cost is very low ( at ~25 paisa per transaction) as compared to the use of debit/credit cards. Though the IMPS was prevailing in India for quite sometime now, it just facilitated person to person monetary transfer. And owing to this, even though there were about 39 million users who had registered for this service in over 50 banks, the overall count of transactions were pretty less. From those 50 banks, SBI, ICICI Bank and Standard Chartered had enabled the IMPS system for merchant payments.

To use the Interbank Mobile Payment System, the user has to acquire one IMPS mobile ID from the bank which could be used in the same was as credit cards. Even the IVRS system accepts the IMPS mobile ID for fund transfers. Via SMS, the maximum transfer which the IMPS system allows in a day is INR 5000.

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