Indian state-owned telecom company BSNL has rolled out a new pre-paid card linked mobile wallet service, called SpeedPay, which allows customers to load money without having a bank account.
The service enables customers to transfer cash, pay for services as well as withdraw cash of up to INR100,000 ($1,572).
The money loaded in the mobile wallet can be transferred to an account and even withdrawn at branches or at BSNL outlets.
BSNL has introduced the service in partnership with IT company Pyro. It has also partnered with Andhra Bank and Corporation Bank to roll out the service.
Additionally, Pyro has tied up with Visa which enables Speed Pay card holder to purchase goods both offline and online, like a debit card.
The company will charge 1% transaction fee if money is transferred to other bank or cash is withdrawn.0
SpeedPay is an open prepaid instrument that can be used for purchase of goods and services at any card accepting merchant location.
SpeedPay, which is now available across 1,000 BSNL outlets in Andhra Pradesh, will be rolled out to 45,000 BSNL outlets in Andhra Pradesh in the next three months.
The service will also be launched in Karnataka, Kerala and Tamil Nadu by the end of September 2015.
India’s minister of communications and information technology Ravi Shankar Prasad said: "This service will give a big boost to Digital Economy and will bridge the gap between rural and urban India.
BSNL chairman and managing director Anupam Shrivastava said: "This service will give big boost to cashless transactions. The service will be launched in other parts of India very soon."
"BSNL customers, who don’t have bank accounts, can also load money by visiting any BSNL retail outlet and ask the retailer to recharge their mobile wallet account and pay for various services."
Pyro CEO Paritosh Reddy said: "Even small entrepreneurs and businessman can become channel partners and set up a merchant account and enable payments for their customers who do not have bank account or credit card. These small entrepreneurs would enable people without bank accounts to pay most of their utility bills and make over-the-counter transactions."