State Bank of India has launched a new touchless variant of its credit cards and debit cards which will allow users to make payments simply by waving or tapping the card near the machines.
Called sbiINTOUCH credit or debit card, it has been touted as a quick and hassle free method for customers to make payments at merchant outlets. These cards use Near Field Communication Technology (NFC) to complete these payments, so instead of having to swipe or dip the card in the machine users will be able to swipe or tap a machine and enter their PIN to instantaneously complete any payment.
The RBI has currently set a cap of Rs. 2000 for transactions via this method and SBI have already requested that the limit be raised to Rs. 5000 to include more valuable transaction in the hope to improve the acceptance of this technology.
Currently, SBI has about 5000 such POS devices which are NFC capable across cities like Mumbai, Delhi and Bangalore, and it aims to not just add 1 lakh more such machines but also convert all existing POS machines into NFC compatible ones.
Contactless cards have been designed to eliminate the use of cash in crowded retail markets such as supermarkets etc. This aims to speed up the payment process at such spots.
SBI to increase the acceptance rate of these cards has also tied up with certain outlets such as Starbucks and Shoppers Stop. All sbiINTOUCH cards will be backward compatible and can be used as regular credit or debit cards and will have a fraud liability cover or Rs. 1 lakh.
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