HDFC Bank ties up with startup
HDFC Bank customers will soon be able to pay at credit card swipe machines using sound from their handsets. The private bank has become the first to sign up with Bengaluru-based startup Tone Tag to provide a phone-based proximity payment service that requires neither special handsets nor any new acceptance device. Tone Tag is expected to be a disruptor because it does away with the need for a card even in stores. The technology requires merchants to have a card swipe machine but will enable customers to digitize their card information and pay by merely tapping on the screen. For security, the tone goes through three levels of incryption and it uses ‘tokens’ to relay information instead of the credit card number.