China Minsheng Banking Corporation (CMBC) is joining forces with Shanghai-based SmartPay to provide SMS-based mobile payments services to its customers.
Under terms of the deal, CMBC customers across China will be able to pay for goods and services from participating SmartPay merchants over any mobile phone or PHS network.
Once registered, users will be alerted when a pre-paid account, such as a phone top-up, is low or when a post-paid account is due. Payment can then be made via SMS.
SmartPay also processes payments for digital cards, utility bills and lottery tickets and says it will provide payment services for airline tickets in the future.
CMBC says SmartPay will give customers a mobile payment service that combines an intuitive user experience with real time ability to access and spend money.
Greg Shen, CEO of SmartPay, adds: "Already, SmartPay has processed billions of transactions. The mobile phone will do for money, what the iPod has done for music, making it instantly accessible and personalised."