Now, pay your auto fare via mobile

Old private sector lender Federal Bank has turned to auto drivers to increase its mobile payment services through IMPS (Interbank Mobile Payment Service).

The facility will enable auto drivers to receive their fare from the customers of any bank using a mobile phone.

“This is a cashless mobile-based payment system which accommodates any amount starting from Re 1 and adds convenience and security to both passengers and drivers eliminating coin shortage and fake currency problems, said D. Sampath, Head - Retail Banking, Federal Bank.

A passenger can make payments by sending an SMS from his mobile phone to his bank.

The simple instructions to follow are displayed inside the auto rickshaw.

The bank of the passenger will then process the transfer request with the technical support of National Payment Corporation of India (NPCI) and send the SMS confirmation to both the passenger and the driver within seconds, Sampath explained.

Viability

Considering payments to auto drivers is currently cash-based and not much of an inconvenience to customers, the viability of the facility remains to be seen. Sampath said, “Though these are small amount payments, the auto drivers have expressed interest in this product. We are providing training to all drivers on the usage of the service.”

Though auto drivers in Kochi are aware of the mobile payments facility, they still prefer ready cash for their.

About 150 auto drivers have registered with the bank to become beneficiaries of IMPS.

At present, this facility has been piloted in Kochi, Irikkur in Kannur district and Chandigarh. The bank will also extend these services to chemists, general stores and churches.

Satheesan, an auto driver plying in the Kochi city limits, said he had to visit the bank branch at the day’s end to collect his fare, which is time consuming, as he does not use an ATM card.

Cash matters

“I don’t know how I would benefit as it is expensive to reach the branch premises to collect cash when I can avoid that with cash transactions,” he said.

Auto drivers said that it would be easy to meet their daily expenses like their meals or fuelling their vehicle with ready cash in the pockets.

However, Sampath stated that accepting a new technology will always be greeted with scepticism.

Beena.parmar@thehindu.co.in

sajeevkumar.v@thehindu.co.in


Source: thehindubusinessline