How does Nokia Money mobile payment service work in India?

A few days ago, Nokia India finally launched the Nokia Money mobile payment service that it has been field testing for about a year now in places like Pune, Nashik and Chandigarh. The service – a partnership with YES Bank and Union Bank of India – gives people a secure wallet for their money that can be used to make payments without the necessity of having a bank account.

“There is a need for alternate financial payment instruments in India and mobile offers the perfect mass platform to deliver these. Transaction costs through banking correspondents is almost a tenth cheaper and for customers using mobile for money transactions the cost are even lower,” said Gary Singh, general manager, Nokia Mobile Payment Services.

A few key features:

1) The service runs on almost every Nokia phone (S30, S40 and S60 operating systems supported) from the cheap Nokia 101 to the Nokia E6.

2) It is independent of any mobile carrier, so whether you use Vodafone, BSNL, Airtel or any other service, it will work perfectly.

3) The service does not require you to have an Internet connection. While registering, you can choose to have it work by SMS or Internet, allowing the flexibility of using it on a data plan or not.

4) Nokia Money does not require you to set up a bank account or have a pre-existing one. It also does not require you to have a credit card and can work purely on the principle of cash.

5) It can be used by a person in the family to settle any bills as well as top up prepaid mobile phones within the family.

How does it work?

Transferring cash using Nokia Money is as simple as sending a text message. Running as a pilot  called “Mobile Money Service by YES Bank powered by Nokia” since earlier last year, users have two types of accounts they can sign up for – Easy Pay and Easy Send.

Easy Pay is the basic version, enabling users to pay utility bills and recharge prepaid mobile accounts from their mobile phone. With just a water bill (as proof of address) and their mobile device, users can sign up for the service easily and quickly at a certified Mobile Money Service retailer. From there, the process of paying bills can be done anywhere they have a network connection. In some instances, the user will get an alarm added to their device, reminding them a few days before that a bill is due to be paid. If a person within their family is running low in their prepaid balance, the registered user can simply send an SMS to top up that balance.

Easy Send is a more sophisticated account and features a range of additional services over Easy Pay. Sign up is more involved, with various proofs of ID, signature and address required. It can still be done at a Mobile Money Service retailer, but the more sophisticated services require more stringent identification. Not only can Easy Send users pay bills and top up prepaid mobile accounts, they can also send money to other Mobile Money Service users. Alternatively, they can use the service as an ATM, withdrawing cash from selected YES Bank ATMs and use their device to pay retailers who have signed up for the service.

A full demo of the Nokia Money service is available online here

To register for Nokia Money or to learn more about the device, visit the official site http://www.mobilemoneyservices.co.in/

If you already have a Nokia mobile phone, there is a detailed guide on how you can register and activate Nokia Money on your device right now [PDF]