State Bank of India (SBI), India’s public sector lender, is in discussions with Chennai Metro to launch contactless payment cards with debit or credit cards functionality.
The payment card with dual functionality can be used as a regular debit or credit card as well as a smart card to be used to pay for the metro ride, as reported by The Times of India.
Contrary to credit cards which need to be either swiped or dipped into a chip reader, payment through contactless cards is instant without any swipe, as the card uses radio frequency.
The discussions are still at an early stage. Bank officials told the publication that SBI was talking to all metro operators.
Though there is no revenue in enabling micro payments, the bank expects that by extending the card service, new customers woulduse their cards for other payments, expanding the market.