Kotak Mahindra taps India's Immediate Payment Service to offer Facebook transfers

India's Kotak Mahindra Bank (KMB) has launched a bank agnostic mobile money transfer service for Facebook friends.

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Kotak Mahindra taps India's Immediate Payment Service to offer Facebook transfers

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

The KayPay application taps into India's Immediate Payment Service for mobile phone payments to enable instant funds transfers from user accounts. Senders and recipients need to register their account details just once with KayPay. To initiate a transaction, users need their Facebook ID and password and a one-time password from KMB. Both sender and receiver immediately receive notifications via SMS and on Facebook about the transfer.

India's Icici Bank last year launched a rather more convoluted Facebook money transfer service, which required both sender and recipient to exchange coupons, passcodes and bank account details for each and every transaction.

Shanti Ekambaram, president - consumer banking, Kotak Mahindra Bank, says: "KayPay is bank agnostic, facilitating transfer of funds instantly. The convenience of not having to know payee details breaks down all barriers of a process, which otherwise requires a host of information that one may not necessarily have handy."

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Comments: (4)

A Finextra member 

Th customer needs an OTP from KMB = customer needs to be a KMB customer? How does that sit with the claim of being bank agnostic?

Chetan Ghadge

Chetan Ghadge Head of Payments solutions at Wipro

Not entirely bank agnostic as it is only available for the banks listed on kaypays site. Will be interesting to see its adoption as there are  many constraints.

A Finextra member 

As both the payer and the payee have to register on KayPay, we face again the egg and chicken paragdime , although KayPay is bank agnostic.

Is this service available with french banks ?

Chetan Ghadge

Chetan Ghadge Head of Payments solutions at Wipro

No it cannot operate outside India as kaypay is based on IMPS platform.

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